LAS VEGAS -- Gov. Jim Gibbons told UNLV to prepare another 8 percent budget cut, after the university took a major cut early last year.

Now UNLV said they may be forced to make some dramatic changes. At a town hall meeting on Thursday, the reaction was one of outrage by people involved with the university.

President Neal Smatresk called the governor's move devastating and worse than the straw that broke the camel’s back -- making the cuts a critical moment in the history of the university.

Speaking in front of several hundred faculty, students and staff, UNLV President Neal Smatresk laid out the grim news. He said the new cuts would mean a 27 percent total in spending since 2007.

“That's a $57 million shortfall and you certainly can say we can continue to serve the students we're serving right now. In the face of it, we've pulled out all the steps to do what we're doing to date,” Smatresk said.

Smatresk said nothing can be left off the table and it's likely they will have to eliminate certain programs to support higher quality programs.

“There's no scenario I can create that doesn't cost us 2,300 students, and that's the lowest number. But it doesn't end there because when you cut 2,300 students, you're going to lose $8 million to $9 million of additional revenue and then you have to compensate for that. That's what the beginning of a death spiral sounds like,” Smatresk said.

Students are likely to see class sections cut -- if their department survives and they feel they've already cut enough.

“Going through that process again and knowing there could be additional cuts makes this very painful and could put the pressure on in a way we've never felt before,” said student body President Adam Cronis..

Nevada System of Higher Education Chancellor Dan Klaich said it's time for lawmakers to look beyond today and worry about tomorrow.

“We are doing this for our kids and grandkids. We should be outraged that this is happening to our educational system because we are seeing the future of our state down the river,” Klaich said.

The cuts would begin March 1. The key date is Jan. 22, when an economic forum will be held and specific dollar figures will be revealed. From there, UNLV and the Board of Regents will have to make some decisions.

Students said they are already organizing protest rallies. The Board of Regents is scheduled to meet on Feb. 2 to discuss options.