SIX of the county’s high schools received warning notices from Powys County Council over the state of their finances during the last year.

Out of these six, two are over £1million in the red, and another has a deficit of over £720,000.

Warning notices were also sent to seven primary schools and one special school.

At a meeting on Tuesday, June 16, councillors on the cabinet were told that due to coronavirus, schools have been given more time to submit their budgets plans for the 2020/21 financial year.

In the 2019/20 year the finances for the secondary school sector in Powys have slipped to an overspend of £3.432 million.

But this is partially offset by the primary school sector which is £2.646 million within budget.

In the last year the finances of the sector have moved from a surplus of £78,000 to a deficit of £910,000.

But this position could have been even worse as finance portfolio holder, Councillor Aled Davies, (Llanrhaeadr-ym-Mochnant & Llansilin) told councillors that they had expected to have to use over £3 million from reserves to bring the budget back into balance.

Cllr Davies, said: “Schools are now collectively reporting an improved position which has reduced the need to draw so heavily on reserves.

“That stands at just under £1 million on their reserves, with £990,000 being used.

“This use of reserves sees school balances moving from a surplus position of £78,000  on April 1 2019 to a deficit of £910,000 at the end of the financial year.

“Most concern is the £3.4 million deficit balance for the secondary sector.”

School budgets have long been a concern for the authority and are seen as a major risk to the entire council’s finances.

In June 2019,  the cabinet had to approve deficit budgets for nearly a third of all schools in Powys with 27 of the 93 schools unable to produce a balanced budget.

Since then staff from the finance department have been working with schools that received warning notices, because of the debt they had run up.

Meetings have taken place with school management teams and governing bodies to discuss how to bring the budgets back under control.

The finance department scrutinised the plans to bring deficits down and warning notices will not be withdrawn until they see delivery of those plans.

Among the secondary schools to be served notices are Ysgol Bro Hyddgen, Welshpool High School and Ysgol Calon Cymru serving Builth Wells and Llandrindod Wells.