The state's new budget will cost the city of Los Angeles more than $200 million in lost revenue, a harsh reality that launched a spirited debate among City Council members Tuesday.

Councilman Paul Koretz prompted strong rebukes from other council members when he said he would oppose $39 million in cuts to the Los Angeles Fire Department.

"Throughout my career, I have made it a policy not to vote for anything that kills people," said Koretz, who took office earlier this month. "This will kill people."

But other council members jumped onto the issue, saying the problem goes beyond the LAFD and public safety.

Councilman Tony Cardenas, in an emotional statement, said it was wrong to pass the responsibility.

"We are talking about the death of a city if we have to go into bankruptcy," Cardenas said. "Too many of us are concerned about our next job and we don't want the firefighters to oppose us in the next election. Here we are talking about what the state is doing to us and we have to make cuts. We are the ones who have to deliver the services to the public."

Councilman Richard Alarcon said the council would want to preserve the fire department, but financial realities may dominate.

"All of us want a no-kill policy in the city," Alarcon said.

The $85 billion state budget, signed by Gov. Arnold Schwarzenegger on Tuesday, makes some $24 billion in cuts to state programs, ranging from public safety to health services.

The governor called it "The Good, the Bad and the Ugly."

"This has been a very tough budget, probably the toughest since I have been in office here in Sacramento," Schwarzenegger said.

The issue of state funding being taken away and the city's need to cut services dominated the council's attention as members also considered lawsuits against the state for a budget that borrows and takes heavily from local governments.

The state budget borrows $120 million in property tax money from Los Angeles, funds the city hopes to replace by issuing bonds.

The state also proposes taking more than $80 million from the Community Redevelopment Agency, but the city is considering whether to contest that action in court.

Also, the state is holding on to about $30 million in gas tax money, which could create a cash flow problem for the city.

"Maybe what we need to do is put up signs on streets and say this work is not being done because of the state," Councilwoman Janice Hahn said.

Councilman Bernard Parks, who chairs the council's Budget and Finance Committee, said the problem is deeper than the LAFD, with the city looking at upwards of a $500 million shortfall this year.

"We are trying to save the financial future of the city," Parks said. "When we began this (fiscal) year, we were told we were looking at 400 layoffs. Well, that's been reduced to 24 because of negotiations and none of those 24 have been notified.

"The farther we go before making cuts, the more difficult it is."

Under the modified Fire Department plan, scheduled to take effect next week, the number of firefighters and paramedics on duty at any given time would drop from 1,104 per day to 1,016, fire officials said.

That would mean slower response times and elimination of some services, such as mutual aid programs with other cities, advance brush teams and some training programs.

Council members are scheduled to take up the fire cut issue again today. However, officials said the cuts will have to take effect beginning Aug. 6 unless an additional $40 million can be found for the department.