The magical key to curbing a wedding budget is to find a reception venue that does NOT have an exclusive catering contract. They can be pretty difficult to find, but that is your ace. If you can find one, you can go out on bids for catering, and you'll get a much better price than you would with a caterer that has an exclusive venue contract.
Have you checked local women's clubs? They often will rent out their clubhouses for weddings, though there can be some strict restrictions on use of the venue. (I got married at one of these, and they had a no-beer rule. White wine was allowed, but not beer, because if it spills it gets sticky and smells bad, and all but one room was carpeted.)
Another possibilitiy is the alumni houses of local colleges, and so much the better if you're an alum. Big schools usually lock in the catering, but commuter campuses often do not.
Oh, and about those wedding favors -- don't bother. No one really notices if you don't have them, except people who have recently been involved in planning a wedding. Also, I obviously don't know your religion, but if you are Catholic, Lutheran or Episcopalian and having a church service, you also don't really need church flowers; there will be some on the altar already. There are lovely big sprays of calla lilies in pots next to the altar in my wedding photos, but I didn't pay for them; they were the ones that the Altar Society had put out for mass that week. We added a few pew ribbons, but no add'l flowers.