An overwhelming majority of California voters believes the state budget situation is a big problem, and they are increasingly inclined to think the solution should involve a mix of spending cuts and tax increases, a statewide survey released today finds.

Among likely voters, 81 percent say they are concerned with budget cuts proposed in January by Gov. Arnold Schwarzenegger, cuts that include a $4.8 billion reduction in school spending. A plurality of voters, 47 percent, agree that tax increases should be part of the budget-balancing solution, while 32 percent believe it should involve spending cuts alone.

The survey, conducted by the Public Policy Institute of California, is based on telephone interviews with 2,002 adults from March 11-18.

The percentage of adults who favor a mix of taxes and cuts increased by 6 percentage points since December, while the percentage who favor a cuts-only approach has declined by 12 percentage points.

"Californians are rethinking their priorities," said pollster Mark Baldassare. "They are feeling financially squeezed as a result of the economic downturn. Any reduction in state services may only add to their sense of vulnerability."

The poll was conducted during a period in which school districts across the state were sending out layoff notices to teachers and taking other dramatic steps to deal with the prospect of dramatically reduced budgets in the coming school year.

The survey found a sharp partisan split on the question of potential tax increases. Among Democrats, 52 percent favor a mix and 18 percent prefer a cuts-only solution. Among Republicans, 35 percent prefer putting tax increases into the mix and 50 percent favor spending cuts alone. Independents are more closely aligned with Democrats on the issue, with 46 percent supporting a mix and 30 percent favoring cuts.

The question is pivotal in legislative budget deliberations. An agreement will require a two-thirds majority vote of lawmakers, but a stalemate looms between Republican legislators who have pledged not to raise taxes and Democrats who have vowed not to trim school spending.

On other issues, the survey found that Sen. Barack Obama fares better in the state against presumptive Republican presidential nominee John McCain than fellow Democrat Sen. Hillary Rodham Clinton.

Obama leads McCain 49 percent to 40 percent among likely voters, while Clinton leads 46 percent to 43 percent. The key difference is that independents, who make up nearly a fifth of the state's electorate, narrowly prefer Obama over McCain.

When pitted against Clinton, however, McCain carries independents 44 percent to 36 percent.

The polling was conducted almost entirely before Obama delivered his widely publicized March 18 speech on race.

The survey found that Californians have a strongly negative view of the economy and appear to be directing some of those feelings toward elected officials.

President Bush's approval rating in the state fell to a record-low 24 percent, down from 29 percent in December.

On the state level, approval of Gov. Arnold Schwarzenegger stands at 44 percent, down 6 percentage points from January.

The economy was cited by 31 percent of voters as the state's most important issue, nearly double the response for the second-rated issue, education. Among all adults, 58 percent of Californians said they believe the state economy is in at least a moderate recession and 76 percent expect bad economic times are ahead.