A principals group is warning the liquidity of some secondary schools is at risk, saying some expect to show a deficit this year and face a worsening financial situation.
The Central North Island Secondary Principals Association says the Government is applying a blowtorch to secondary school finances.
Spokesperson Clive Hamill says more than half the principals at a recent regional meeting expected to make deficits this year.
Mr Hamill says the Government's 4% increase to operations grants is little comfort in the face of an increase in GST and other changes to school funding.
Principals are also finding that families cannot afford school expenses, he says.
Principals say payment for course fees is slow, bad debts are increasing and getting money for school activities and sports is more difficult.