FALLING school rolls have cost Bury £632,000 which could have been invested in education.
The number of pupils is falling faster in Bury than elsewhere, leading to a lower share of funding from the Government.
The news comes as town hall bosses are reviewing the future provision of primary education in the borough. Some schools may end up closing because they have too few students.
The cash shortfall was revealed to councillors at Wednesday's executive committee, where it was confirmed that next year's council tax would probably rise by more than twice the rate of inflation.
The amount Bury is theoretically allowed to spend has been increased by 4.5 per cent. However, the council would have received an extra £1.3 million had its increase matched the English average of 5.4 per cent. Councillor Wilf Davison, Lib Dem leader, said he was very disappointed with the settlement.
"The issue of pupil numbers is not going to go away," he told the committee.
"The forecast number of pupils is dropping quite alarmingly in the borough. Action is needed to continue providing for those who remain."
Finance officers will respond to the Government's provisional settlement in early January. They urge residents and groups to make their views known as soon as possible so that they can be included in Bury's submission.
Budget roadshows will be held next month at meetings of the borough's six area boards.
Coun John Byrne, council leader, said Bury would definitely get a better deal next year when the system of local government finance was reformed.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article