California's economy will likely be hit hard if Congress doesn't reach a deal on the fiscal cliff.
Four hundred thousand people will lose their federal unemployment benefits.
School and other programs will also seeing their funding cut.
Federal employees could lose their jobs and most people will see an increase in their income taxes.
"The effects of another downturn on the federal budget, on the california state budget far and away dwarf the potential cuts or tax increases that happen as a part of any fiscal cliff negotiation," Chris Hoene, executive director of the California Budget Project said.
Some programs including Medi-Cal and Social Security will be spared from spending cuts, even if a deal isn't reached by the first of the year.