Speaking as a meteorologist that has worked for a couple private weather companies (that I will not name)..... cutting the NWS budget would in no way be even remotely beneficial to the private weather industry. Where I work, we are increasingly doing more business with the NWS.... and want them to do as well as possible. Otherwise, I'll be working at McDonald's again like when I was a teenager. Simple as that.
....which brings me up to point #2. With the effects of the financial crisis merging with what I call the "met industry job crisis" ..... those in school for weather, or those wanting to go to school for weather, or those getting a PhD in weather thinking they will get a job..... better get your head out of your butt and start thinking about other career options. Ever since I started college, I always heard that most NWS mets were "just about to retire and there will be a TON of openings in just a few years!". Guess what, that has not come to pass and now won't since a lot of guys with 30 years in just lost 30-40% of their retirement and will now want to keep working to save up a bit more. In private meteorology, it is even worse since we actually have to make money each and every year to pay salaries, financing, capital expenses, yadda yadda. End result? I have seen hiring come to a halt around summer 2008 and layoffs hit many at other companies in private weather. I would guess most private wx companies won't hire in any meaningful way for years....... I really feel bad for those graduating right now because the odds are stacked completely against them. Even if you are the best met in your graduating class.... it doesn't do any good if there are no job openings! Why am I so pessimistic? Because I want the message to get out.... people that go into this field are almost universally optimistic and stubborn as a mule AND their college professors aren't in the business of telling them they are throwing themselves down a figurative well. They think if they just hold out long enough something will drop in their lap. Meanwhile, they make themselves miserable, work for horrendous wages that would make an assistant manager of a Jiffy Lube laugh with glee, and end up moving their whole family to frozen hellholes in the Arctic for their "career". Don't do it! There are many great job opportunities out there, even if you have a degree in meteorology...... and will probably work better for you in the long term. Hint: the energy (wind, solar, nuclear, geothermal) industry will be the biggest source of jobs in the 21st century.... especially in the U.S., so get cracking!
DISCLAIMER: I work in weather, love the job, and don't plan on leaving the field for a long time. However, I am going back to school to diversify my skill set for future opportunities in weather, energy, and engineering. Those planning to work in weather, or stay working in weather....... better expect to wear multiple skill hats (forecaster, programmer, sales, PR, etc.).
Oh yes, almost forgot........ NWS budget cuts would be bad for EVERYONE in the industry. End of story.