SIXTH forms in Newport secondary schools face a £125,000 funding shortfall from April 1 this year, headteachers say.
Education Learning Wales (ELWa) is taking over the responsibility of funding sixth forms from local authorities - but is basing its costs on last year's pupil numbers.
But the number of sixth formers at Newport secondary schools increased by 100 in September 2001 - and a similar increase is expected this year.
And members of secondary headteachers' groups claim the Newport schools are being penalised for encouraging more pupils to stay on.
David Snashall, speaking as Newport branch secretary of the Secondary Headteachers Association, said: "Because the schools have been more successful in getting students to stay on, we will end up with substantially less money per student." The headteacher at Duffryn High School, added: "The increase in the staying-on rate in Newport is markedly higher than most other areas at the moment, so this has hit Newport worse than elsewhere.
"It seems terribly unfair. And if, in September, we recruit even more students, we will get even less funding per student.
"We are going to have to make some hard decisions about courses we're going to be able to offer and about how we fund this shortfall which might mean we've got to cut back on one or two other things.
"When the National Assembly says it wants more students in post-16 education for a better skilled workforce, it's got to make sure resources at least stay the same."
Adrian Davies, secretary of the Conference of Newport Secondary Headteachers, has written a letter to Newport MPs, AMs and councillors, asking for their help.
The Caerleon Comprehensive headteacher, said: "The situation will seriously undermine the achievement and progress made by both the schools and the LEA. We do not wish Newport's sixth formers to be disadvantaged in comparison with students from other areas. We want well-funded sixth forms which provide a sound basis on which to build further progression."
Councillor Ernie Watkins, Newport council's cabinet member for young people's services, said that the original shortfall for Newport had been £350,000, but that after constant approaches by local authorities the Assembly had raised their funding by 5.5 per cent.
The National Assembly gave ELWa £89.4 million to share among the local education authorities in Wales - £5.3 million went to Newport.
Councillor Watkins said: "The shortfall now is much lower than what it was originally, but of course we are concerned."
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