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It looks like it has been cut, what is it?

 

Vacuum line. Wouldn't be surprised it that one didn't go to the side of the intake.

 

That's your engine vacuum check valve

 

Is it bad that its not connected and how much sleep should I lose over this?

 

it'll cause your heat upper/lower vent control to not work right.
its also a vac leak which makes the engine run a little lean.

you should fix it. just find where it attaches and cobble it back together with a sleeve splice of vac hose.

 

I knew it! This why my vents have been stuck on defrost the past month!! And I have had slightly worse fuel economy recently, but I chalked it up to my lead foot.

Thing is, I can't find where it goes

 

Should be a couple ports toward the bottom of the keg, right in the middle. Chances are, if you follow the lines connected there, you will find the other end of the broken piece.

 

Never mind, I found it. It was hiding on the valve cover under some other stuff.

It was coming from around the back of the keg though. How do I go about fixing it?

 

what color was the one coming from around the back of the keg?

Just get a piece of rubber line, that fits tight on there, and use it as a splice.

 

+1 on that. There is either one or two ports on the pass side of intake. One of those will have a hose coming off of it to go to that tiny hose.....