Released earlier this week, the president's proposal seeks to reduce the federal deficit by squeezing domestic programs, such as Medicaid and rental assistance. It's a worthy goal, but poorly orchestrated and potentially harmful to Utah's economy, state leaders said at Capitol news conference.

House Budget Chairman Rep. Ron Bigelow said the proposal leaves Utah the option of either cutting services or hiking taxes to compensate for lost federal dollars. He is sponsoring a resolution urging the U.S. Congress to reject proposed cuts to Medicaid, estimated to cost Utah $245 million over 10 years.

"If they think these services aren't warranted, why don't they face the public and people who need these services head on?" said the West Valley City Republican. "Don't blame the states."

On Friday, Utah legislators begin weighing bills to restore Medicaid dental and vision benefits cut during the recession, estimated to cost $8.6 million.

"Where do you draw the line on these difficult and critical priorities?" asked Senate Majority Leader Pete Knudson, R-Brigham City.

Under Bush's budget proposal, the U.S. Department of Housing and Urban Development (HUD) would suffer a 12 percent budget cut, resulting in fewer Section 8 rental assistance vouchers.

"We are dealing with lives, not red ink," said Gordon Walker, Utah HUD director.

Cities and counties nationwide also stand to lose $3.7 billion in Community Development Block Grants, used to help fund homeless shelters, fight urban blight, pay for domestic violence and substance-abuse programs and repair sidewalks.

"Cutting these programs hurts the people who can least stand to have something removed from their toolkits for survival," said Republican Midvale Mayor JoAnn Seghini.