I could name four primary schools, right now that are over £100,000 in deficit this year. And that is just my area
And that is exactly what parents at St. Olave's were told (info from MumTryingHerBest's link):
Parents were told that this money was critical in keeping the school functioning following the budget cuts of recent years, and were also recently informed that the school would be running a deficit of £100,000 for the first time this year And yet the school had funds of £1.4m and £1m sitting in the bank.
I don't think running a deficit is necessarily a problem if you read this recent publication from NASUWT (National Association of Schoolmasters) - 'Where has all the money gone?'
www.nasuwt.org.uk/advice/leadership/budgets-funding.html
For those schools which are in deficit, this does not necessarily mean that the school is experiencing funding difficulties. Many schools experience short-term deficits because of increased pupil numbers which have led to greater expenditure to meet pupil needs. Funding for increased pupil numbers (known as ‘growth’ funding) is usually given to schools at least one year after the increase in pupil numbers has occurred
Inaccurate information about school funding, including fictitious school funding allocations, is circulating round the system, which is leading schools to believe that they must cut expenditure on teaching and learning when this is unnecessary
The EPI Report is highly misleading. The percentage of schools with deficit budgets rose by three per cent to ten per cent by March 2017, with a decrease in the average surplus by £11,000 to £131,000 for 90 per cent of schools. However, the EPI Report has drawn the conclusion that over 60 per cent of schools spent more than their income in 2016-17. No wonder the EPI has noted that the figures in their report differ from published statistics on school balances