"That being said, are scare tactics being used by public officials to force tax-payers into believing that taxes have to be raised or services will be cut? I really don't know."
i think the opposite is taking place - the focused discussion on shrinking budgets is a scare tactic to get people to make concessions and shrink government RATHER than raise taxes.
i can make very solid and valid arguments for why they SHOULD be raised before cuts are made - and public servants (like those you mentioned who protect) are a perfect example of this.