Senior councillors have vowed that they will not allow a school funding black hole of just under £16 million to materialise in Powys in three years’ time.
Members of Powys County Council’s Cabinet received a report on school budget plans for the coming year at their meeting on Tuesday, 30 July.
School governing bodies had been given a 1 May deadline to submit their proposal to the council – which also includes projections for the next three years.
The report shows that schools are predicted to have a deficit of £2.362 million by the end of March 2025, which will balloon up to a potential £15.784 million deficit by March 2027.
The total delegated schools budget rose this year £87.4 million- out of a total council budget of £340.7 million for this year.
But with bleak funding outlook for local government, schools might not receive any further funding for years to come.
Chairman of the Learning and Skills scrutiny committee Conservative Cllr Gwynfor Thomas said: “The staggering thing when you open the report pack is the amount of red which stands out in front of you and the projections.
“The (financial) work with schools that has been going on, appears to have run its course and left schools in a position where they have nowhere to turn except to reduce curriculum and staffing levels.
“That’s the harsh reality.”
Education portfolio holder, Cllr Pete Roberts expected schools budget positions to be “clearer” in the autumn.
The “uncertainty” around the energy costs to run schools would also be clarified by then.
Finance portfolio holder, Cllr David Thomas said: “When you look at the final figure it’s certainly alarming.
“What we have to accept is that there’s a lot of uncertainty around the projections in these forecasts and a lot might change.”
“There is also the question of the flat (cash) settlement we’ve asked schools to work to currently it’s just indicative.”
“As a cabinet and council there is no way we can allow that deficit to actually materialise as it would pose a significant threat to the authority as a whole.”