BURY'S schools are heading into choppy waters as pupil numbers fall and more budgets drop into the red.

Head teachers and governors are also spending cash grants meant for new building work on day-to-day running costs simply to keep afloat.

Figures show that 13 primary schools and four high schools carried forward budget deficits into this year totalling £257,000, nearly double the previous year's £133,000.

And while the remainder ended the term in surplus, education bosses say many are doing this to "cushion" themselves against falling school rolls in the future. They estimate that, if current levels of funding and staffing continue and pupil numbers drop, three quarters of local schools will have no reserves left in two years' time.

Those with carry forward deficits have had to use this year's cash to pay off the outstanding money. The largest deficits were at Prestwich High (£36,543), Woodhey (£42,193) and Tottington CP school (£54,088).

However, one school has received permission from the council to set a £50,000 deficit budget, and three others are in the pipeline. Three schools made four redundancies to balance the budget, while two primaries spent capital grants to stave off staffing problems. The council has refused to name any of these schools on the grounds of employee and financial confidentiality.

A report by Councillor Steve Perkins, executive member for lifelong learning, also reveals that Bury schools directly received £3.1 million in School Standards Grant for new developments: but almost half of this has been earmarked to support core budgets. Also, 16 primary and three secondary schools have said they will need to use some of their Standards Fund money to support their revenue budget: a total of £300,000 not available for its intended purpose.

On the other hand, the Government has given councils the power to take money off schools with "excessive" surpluses to support those which do not. Six primary schools (Mersey Drive, St Andrew's (Ramsbottom), St Hilda's, Sedgley Park, Unsworth and Wesley Methodist) plus Cloughside special school and Castlebrook High fall into this category. A council spokesman said: "We do not believe there is any reason for us to exercise new powers to rein in these at the moment, although we will be reminding governors of the rules and their responsibility to try to balance their budgets and not build up reserves."

Coun Perkins, in his report to the executive, adds: "Although it may appear that there significant levels of balances held by some schools, the overall total is less than three per cent and is well below the recommended levels published by the Audit Commission.

"The level of deficit balances is increasing and the impact of falling rolls will exacerbate the situation, with three-quarters of all schools predicted to have little or no balances within the next two years, unless the levels of funding and staffing are changed in order for schools to be able to set a balanced budget."