Queensland Premier Campbell Newman has flown to Canberra for the Council of Australian Governments (COAG) meeting - with his wallet firmly closed.
He will be pressured by the federal government to sign up to the $14.5 billion Gonski education reforms and chip in $1.3 billion.
The state will in turn gain $3.8 billion from the federal government for the reforms, but will also have to commit to growing its school funding by three per cent.
State Treasurer Tim Nicholls says $535 million has been set aside for the state's own Great Teachers -- Great Results reforms, and another $300 million for school maintenance.
Mr Nicholls hasn't detailed where he will get the funding, but he insists there is not enough for Gonski without severe cuts to services.
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He warns it would put at risk 1300 hospital beds, the jobs of 16,250 teachers, or 13,000 nurses.
"This is something that the Queensland government is not prepared to contemplate," Mr Nicholls said.
"Queensland is at its fiscal limit.
"It is a difficult time, the negotiations will be tough."
Queensland has been threatening to derail Gonski negotiations for months, angry over the initial lack of detail and claiming its universities would be worse off.
Mr Newman will also be fighting to keep control of the state's proceeds of crime laws.
The states and territories will be asked to refer their powers to the Commonwealth, but Queensland Attorney-General Jarrod Bleijie says it is a blatant cash grab.
The state is introducing its own laws, which he says will be the toughest in the country for dealing with organised crime.
"How can Queenslanders have confidence in the federal government's ability to deal with this issue?" Mr Bleijie asked.
"They can't stop illegal boats, how can we expect them to stop outlaw bikies already here?"
Mr Bleijie's federal counterpart Mark Dreyfus said the Queensland government has been fully briefed and knows full well that no state would be worse off.
"It is a deliberate misrepresentation of the national plan," he said.
The national laws would preserve state laws and each state would be able to retain proceeds of crime seized under their own legislation.
Opposition Leader Annastacia Palaszczuk has urged Mr Newman to put education at the front of his mind, not politicking.
