West Sussex schools are bracing themselves for a cash crisis which could force them to axe up to 180 teachers and other staff.

They will be £16 million worse off under a new Government funding formula announced yesterday.

Headteachers have already had to drop some subjects from the curriculum because they cannot spare the teachers.

Jill Wilson, head of Oathall School, Haywards Heath, said her school's budget was already very tight.

She said: "I do not want to be alarmist but we have had to make cutbacks already to make sure we do not lose any classes or staff.

"We have had to curtail the development of the school in various ways and now we will have to make careful plans for the future."

Steve Johnson, head of Warden Park School, Cuckfield, said he would be very concerned if there was a funding shortfall.

He said: "Often we are seen as a very affluent part of the country but the needs of West Sussex pupils are just as important as anywhere else.

"We have applied for specialist school status which will provide us with more money so we are actually expanding our curriculum."

West Sussex education and arts director Robert Back announced in a report to the council's education select committee that schools expect to lose the equivalent of 43 full time teaching posts and 28 non-teaching posts this year.

The same number of teachers will be lost the following year but non-teaching staff cuts will rise by more than 230 per cent, to 66.

The Government announced plans for the formula last year and said it would be scrapping grants to schools and education authorities under the standards fund.

The county council believes schools in West Sussex were among the worst hit by the changes.

Mr Back, who prepared the report with resources director Helen Kilpatrick, said: "Although some schools appear to be coping with these changes more comfortably, others have found it very difficult.

"There have been particular problems for schools with falling pupil numbers and schools that used the standards fund to support additional teaching and non-teaching posts."

Headteachers' budgets have been further hit by a one per cent increase in employers' National Insurance contributions, a 4.6 per cent increase in their contributions to teachers' pensions and teacher shortages increasing recruitment and retention costs.

Mr Back said classroom improvements and workforce reforms had been postponed as a result while schools across the county were transferring almost £9 million in savings, meant for building projects and other improvements, to pay for day-to-day running costs.

Mr Back said: "The figures for 2004 to 2005 are a serious concern at a time when school workforce reforms would suggest enhanced roles for staff."

In July, a delegation of headteachers from Bognor met schools minister David Milliband to explain concerns over the budget.