State and territory leaders have united in condemnation of federal budget cuts to schools and hospitals, and are demanding an urgent meeting with Prime Minister Tony Abbott to resolve the issue.

They warn that a decision to strip $80 billion from health and education funding over the coming decade will force many states to slash services.

"The cuts that have been put forward by the Federal Government we cannot absorb," New South Wales Premier Mike Baird told journalists at a joint news conference with other state leaders.

"We can give no clearer message to Canberra than to say we cannot absorb these cuts."

Mr Abbott has said he wants the states to take more responsibility for schools and hospitals, adding that the Coalition never promised to stick by long-term funding deals struck by the former Labor government.

Many state leaders have already received a phone call from the Prime Minister to explain the budget cuts, but he has indicated he is willing to negotiate.

"We've just been absolutely up-front with the states and we've now got three years to sit down and have a mature adult discussion about this and work out what the best way forward is," Mr Abbott told the ABC's Insiders program.

But state and territory leaders are demanding an urgent Council of Australian Governments (COAG) meeting with the Prime Minister, arguing some of the changes will have an immediate impact on state budgets.

"We need to sort out what is happening from the first of July," Victorian Premier Denis Napthine said.

"My belief ... is that Victoria will lose about $200 million in funding as of the first of July."

Parliamentary Secretary to the Federal Treasurer Steve Ciobo says the premiers need to tell the truth about the budget.

"The truth is that we are providing in net terms more money to the states," he said.

"I'm upset of course that there are people that would seek to make political hay from this when frankly what they should be doing is speaking the truth."

Weatherill says leaders united in their rejection of PM's plan

Anger at the planned budget cuts has cut across both sides of politics, with Coalition premiers sitting beside Labor leaders.

Tasmanian Premier Will Hodgman compared the federal budget crisis with his own state's budget challenges.

"When the budget was released we described it as 'the good, the bad and the ugly'. It's getting uglier by the day," he said.

"We are seeing something that is untenable and unsustainable. I will not allow the rug to be pulled out from underneath us.

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"I understand the extent of the budget crisis that the Coalition Government in Canberra has inherited. My Government has inherited a similar thing in Tasmania ... but I'm equally committed to ensuring that Tasmanians have good access to health care, access to good education, [and] a fair allocation of Commonwealth funds to our states."

Mr Hodgman said the federal changes would have an immediate effect on his state's health budget.

"If these cuts go through, as is proposed, in Tasmania it will mean $27 million coming out of our health budget this coming year. That's 59 hospital beds, or over 5,000 surgical operations," he said.

South Australia's Labor Premier Jay Weatherill says all leaders are united in their rejection of Mr Abbott's plan.

"What the Commonwealth did the other day in the budget is ... they decided to push something across the table to us," he said.

"Well, we're pushing it right back to them."

Mr Weatherill has warned that South Australia will begin to lose funding from the middle of the year, forcing the state to cut back on services worth the equivalent of one public hospital.

Queensland Premier Campbell Newman is urging the public to join the premiers' campaign, by encouraging them to lobby backbench MPs.

"What I'd like is for men and women across Queensland to pick up the phone tomorrow morning, send an email, ring your local LNP member or senator and let them know that you're concerned about this and ask them to have a really good look at what is going on in the budget," Mr Newman said.

"That's what we'd like - and we'd all like that to happen."

WA Premier Barnett not at Sunday's meeting

All state and territory leaders were at Sunday's meeting in Sydney, except the West Australian Premier Colin Barnett.

However, Mr Newman says he believes Mr Barnett broadly supports Sunday's resolution.

"I'll just say we all know and love Colin, and Colin has a very strong and clear view about what he wants for WA. Our understanding in conversations that are had between the staff prior to the meeting today is that he broadly supports the thrust of it," Mr Newman said.

"He has a slightly different view about the timeframes involved and maybe that's because the budget impacts aren't as pressing for him.

State and territory leaders meet to discuss federal budget. ( AAP: Daniel Munoz )

"WA has been in a good financial position in the last few years. It's deteriorated a bit more recently but they have had quite a good run with the resources boom and royalties.

"So he will have to answer for himself and his views. But very clearly, ultimately getting this federation to work properly is in the interests of all people of WA. I know at the end of the day he will support that."

On Wednesday, Mr Barnett said the effects of the cuts were still some time away.

"It's four to five years away so no sense of panic is required," he said.

Mr Barnett has said he would be "happy" to discuss an increase to the rate of the GST - with the caveat that his state must receive a greater slice of the tax take.

Opposition Leader Bill Shorten has also ramped up his criticism of the budget during a speech at the ALP state conference in Melbourne on Sunday.

"Tony Abbott knows you can't take $80 billion out of schools and hospitals without the states having to increase a new tax," he said.

"They want the state governments of Australia to introduce a bigger, broader GST to pay for the cuts they will have to pay for."