Also, public schools will be facing major budgetary issues, at least they are here in California, and I imagine it is the same everywhere. The state of California is a budget nightmare right now. I haven't heard anyone say that there will be a reduction in the number of grad students accepted, but with budget cuts and so much uncertainty, I think there will be a lot of pressure to reduce the number of grad students they accept. But I think departments realize that grad students are important enough to the strength of the department, the number shouldn't decrease too drastically.
Still, if I were applying this time around, I would definitely apply to more safety schools, as I think competition this time around will be pretty tight.