THE recent meeting of the Lancashire Schools Forum spent a considerable amount of time discussing the difficulties which schools across the county are experiencing in managing their budgets this year.

Lancashire received a below-average increase in funding from the government in 2003/04, but the County Council exceeded the Department for Education and skills' passporting target for schools budget by three per cent.

Resources received from the government for the Schools Budget increased by only 3.4 per cent -- very close to the 3.2 per cent per pupil minimum provided for by the Department.

Increases in teachers' pay, National Insurance and superannuation, together with changes to the operation of the Standards Fund and a shortfall in the funding of performance related pay have left many schools without sufficient funding to manage their schools.

Governors and headteachers have made use of reserves (much of which had been earmarked for development work) but they have also had to cut important elements within their budgets, including professional development, maintenance, books and teaching materials as well as terminating temporary contracts which under different circumstances would have been made permanent.

The Forum recognises that since 1997 education resources within the education authority have improved significantly, but is extremely concerned that the local government settlement this year has caused schools in the county to make the sort of savings that they have not had to consider since the 1980s and 1990s.

Education Secretary Charles Clarke has stated that this position will not be allowed to continue in future years. However today's young people will suffer as a result of the Government's funding policies. The Department, we are told, under-spent last year by some £1billion, if this is so why cannot some of this money be released to resolve problems which schools are facing now?

Lancashire Schools have over the years risen to the various challenges set before them, but it is totally unrealistic to expect schools to continue to meet these challenges as well as others such as the new Workload Agreement without adequate funding.

J F DAVIES, Chairman, Lancashire Schools Forum (Carr Hill High School, Kirkham, Preston).