On the whole, I think this is a good thing. It essentially burst the "muni bubble" that began when Philadelphia wifi made it seem you could have it all and spend no money. Serious muni projects with a purpose and a focus, such as Minneapolis, Corpus Christi, or Saint Cloud, will survive.
Meanwhile, Terry McCauliffe has decided to rerun the "the media is biased to Obama" card that played so well last time and in NH. While this will no doubt play well with Clinton supporters (who are sore that SNL has turned against them), it is unlikely to have the same impact on the media and its coverage of the race as last time. After a month of Jeremiah Wright and endless "can Obama connect with working class white people" coverage, and the fact is the "bias" is the math issue, I don't expect much widespread agreement that the media is picking on Clinton.
Most tellingly, in a nod to what is apparently Clinton's new base, McCauliffe "also praised Fox News, which is often viewed as a conservative media outlet, as 'one of the most responsible in this presidential campaign.'"