Debts being run up by some schools in the area is fuelling the need to transform the education landscape in Powys, according to council bosses.
School budgets for 2019/20 were discussed at a meeting of Powys County Council's Learning and Skills Scrutiny Committee.
In the 2019/20 the finances for the Secondary School sector in Powys have slipped to an overspend of £3.432 million.
This was partially offset by the primary school sector which is £2.646 million within budget.
In a year the finances of the sector have moved from a surplus of £78,000 to a deficit of £910,000.
2019/20 was also the first year for a new schools funding formula.
Audit committee chairman, Councillor John Morris said: “When the funding formula was brought in, it was seen as all singing, all dancing, and was going to cure the problems.
“It’s apparent that the formula failed secondary schools in particular.
“One thing it has done is put a huge financial burden onto the schools that already had overdrafts.
“Can these schools ever pay back the deficit that we forced them into in 2019/20?
“Not recognising average teacher costs and the TLR (added teacher learning responsibility) was a fault of the council.
“It will be difficult for these schools to repay historic overdrafts.”
Finance portfolio holder, Councillor Aled Davies said “The funding formula change brought more clarity where the money was going.
“But it didn’t change the overall size of the the pot.”
Education portfolio holder, Councillor Phyl Davies, said: “We unfortunately found ourselves in a position where we were stretching the funding over far too many schools.”
Cllr Davies added that the funding formula that had been created would not be suitable for the future, but it was a position to “grow from.”
Head of finance, Jane Thomas, explained that the rules governing school finances had been changed.
This was to allow schools to payback their deficits over number of years.
Ms Thomas said: “The current configuration is not allowing us to put the appropriate levels of funding into our schools.
“That is why the transformation project is critical to us.”
On June 16, the cabinet noted the schools financial position as part of the overall budget report for 2019/20.
Secondary Schools Finances:
Brecon High School – £1,618,678 deficit – warning notice
Gwernyfed High School – £280,513 surplus
Ysgol Maesydderwen (Ystradgynlais) – 309,720 deficit – warning notice
Crickhowell High School – £1,002,764 deficit – warning notice
Ysgol Uwchradd Caereinion (Llannfair Caereinion) – £6,123 deficit
Llanfyllin High School – £87,784 deficit
Llanidloes High School – £62,745 deficit
Ysgol Bro Hyddgen – £162,071 deficit – warning notice
Newtown (inculding John Beddoes campus Presteigne)- £396,501 surplus
Welshpool High School – £728,216 deficit – warning notice
Ysgol Calon Cymru (Builth Wells and Llandrindod Wells) – £131,302 deficit, warning notice
Other schools that received warning notices
Brynhafren County Primaru School (Crew Green) – £144,431 deficit
Carreghofa County Primary School (Llanymynech) – £17,895 now in surplus
Llandrindod Wells C P School Cefnllys – £24,811 now in surplus
Llanerfyl Church in Wales Foundation School – £14,098 deficit
Presteigne County Primary School – £25,042 now in surplus
Ysgol Gymaeg Dyffryn Y Glowyr (Cwm-Twrch) – £84,702 deficit
Ysgol-Y- Bannau (Brecon) – £17,735 now in surplus
Ysgol Cedewain Special School (Newtown) £297,296 deficit
By Elgan Hearn, Local Democracy Reporting Service