COSTA MESA, Calif. -- Monday was a big night for the two top Republican candidates for governor as Meg Whitman and Steve Poizner faced off in Costa Mesa for their first debate.

Whitman has a comfortable lead in the polls, which made the debate especially important for Poizner.

The two candidates have been campaigning for almost a year, but much of the media's attention has focused on the amount of money former eBay CEO Whitman has spent on advertising.

Monday night's first debate dealt largely with ending illegal immigration and balancing the state budget.

"We are simply spending too much money," said Whitman. "We don't have a revenue problem, we have a spending problem of epic proportions."

To balance the budget, Whitman proposed laying off 40,000 state workers, raising the state retirement age and cracking down on welfare.

"We must make changes to welfare by limiting the time you can be on welfare from five years down to two years and requiring individuals to work for their welfare benefits," argued Whitman.

Poizner addressed the issue of taxes firmly.

"I don't support any tax increases. None. Not on anybody. No fee increases. Our taxes are already too high," said Poizner.

In fact rather than raising taxes to reduce the deficit, Poizner proposed cutting all state taxes by at least ten percent.

When Whitman said that would make the deficit worse, Poizner answered that tax cuts would lure businesses back to California and ultimately increase the tax base.

"But this is what the republican party is all about right," said Poizner. "We have proven that across-the-board tax cuts work. Our taxes are way too high."

During the debate, which was sponsored by an Orange County Republican group, the two candidates tried to show off their most conservative side, especially on illegal immigration.

"I am 100 percent against amnesty, no exceptions," said Whitman. "We have got to eliminate sanctuary cities. The most egregious example is the city north of me, San Francisco. It is direct violation of federal immigration law and we simply should not let it stand."

Poizner responded with his own hard-line stance, blaming some health care problems on illegal immigrants.

"Go to an ER or clinic and you will have to wait in line for hours," said Poizner. He went on to say the state should to cut services to illegal immigrants, including health care and access to schools for their children.

"We have to turn the magnets off by ending once and for all the taxpayer funded benefits for people that are here illegally," Poizner said.

When Whitman alleged that Poizner favored a path to citizenship for illegal immigrants back in 2004, Poizner accused her of being negative and nasty before proceeding to get negative himself.

"What were you doing in 2004?" asked Poizner. "You endorsed Barbara Boxer. You campaigned for Barbara Boxer. You contributed to Barbara Boxer. If you want to talk about history, lets talk about your history."

Whitman, a billionaire from her eBay days, has built a sizable lead over Poizner by spending millions on television ads. But Poizner is also worth hundreds of millions of dollars and has just begun his own advertising campaign.

With less than three months until the primary election day, the Republican race for governor appears to be heating up.