Demotion and then months later might get pay reduction

I work for a state agency and was working in a management role. The department had 3 supervisors managing the same department, so there were issues with how the department was running. One of the managers was removed from supervising the department, the other was put in charge of everything with the plan of changing the supervision structure, and they removed my management responsibilities, but none of my other administrative responsibilities. A few weeks later the supervisor that took over the department then assigned an employee that was underneath me previously as the supervisor of the department and my supervisor. I was told that I was going to keep my title and salary and all my duties except the supervision of employees. So 4 months later I have been told that they are looking at demoting my title and reducing my salary and having me continue my current responsibilities. I have been told through this whole process that my work performance has been great. Are they trying to get me to quit and is this legal?