Schools in Christchurch's earthquake damaged eastern suburbs fear they will have to lay off staff before the end of this year.
Principals say families have left the area because of job losses and damage to homes from the devastating quake on 22 February.
They say in some schools, the number of children has dropped by as much as 40% and could still be down by 15% at the start of next year.
School operations grants are recalculated several times during the year, but funding for teachers is not adjusted until next year.
Even so, eastern suburbs schools are already expecting job losses.
Avondale School principal Mark Scown says drop in student numbers is a huge concern. Most of the missing children are enrolled at other schools, while some have moved out of the area permanently.
Less operational funding could mean job losses for support staff also, he warns.
Mr Scown says it is clear the eastern suburbs schools face a markedly different future from those in other parts of Christchurch.
Education Minister Anne Tolley says the Government has not made any decisions about school funding but it is continuing to support schools.
