NSW Premier Mike Baird says he wants guarantees on hospital and schools funding.
Speaking ahead of the Council of Australian Governments meeting, Mr Baird said the federal government should "fully fund" the Gonski agreement on schools.
On health funding, he said: "It is not acceptable to take your contribution to health to go well below where health costs and health expenditure is going."
Mr Baird said NSW understood the financial challenges faced by the federal government, but the states were also under pressure.
"You cannot take billions and billions of dollars away and say, `It's your problem'," Mr Baird said.
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"That's not good enough. That's not the good-faith way of doing things and we expect better."
He said there was a "lot of work to do" on the income tax proposal from the prime minister.
"The principle of wanting to have more autonomy with the states is a good thing," he said.
