A COUNCIL blunder left teachers facing the axe due to a shortage of cash.
But all the money available had not been allocated - a "forgotten" £1m was lying unused in the Stockport Council budget.
The error - by an accountant new to the job - went unnoticed for more than three months.
At the same time, accountants new to education services allocated too much money for special education needs, basing their calculations on 52 weeks instead of the school year of 38.
Part of that money will never be retrieved because the Lib-Dem-controlled council feels "it would be too damaging to relationships if it sought complete clawback," says a report by an independent investigator
The shortfall in the budget has now been amended but not before several schools started difficult staff reduction measures.
Bramhall High School even resorted to asking parents for financial contributions to meet its £60,000 deficit.
Stockport's opposition Labour leader Tom McGee said: "Whether or not there are the right number and level of staff to undertake such a complex process is a decision that the ruling party have made.
"The Liberal Democrats have got to realise that their decisions have contributed to this situation."
The investigation report says little support was given to the new staff and there were no budget-setting guidelines to follow.
Council leader Mark Hunter said the errors will be put before the council's scrutiny committees. "Serious mistakes were made by council officials."
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