Schools in Bradford's most deprived areas could lose thousands of pounds of funding.
Head teachers at 15 schools fear they could face massive reductions when their budgets are allocated.
Their concerns have been prompted by a change in the way money is given to schools. The schools which are expected to be affected get money on top of their normal budgets because their pupils have extra needs.
The budget calculation was based on the number of free meals a school needed. But this has changed and head teachers claim thousands will be lost.
John McGowan, head teacher at Knowleswood Primary school, said he expected to see the new figure to be about £140,000 less than under the free school meals measure. His school's budget is normally about £1 million
Mr McGowan worked out the figures under the new formula and found 15 - 14 of which are primaries - were expected to be worse off.
He said: "Schools serving the most deprived parts of Bradford are being affected by this. We may not be able to hold on to some of our staff."
In the past, Additional Education Needs (AEN) funding was based on the percentage of free school meals, but this year, following consultation with head teachers and other education representatives, it was decided to use a combination of the free school meals and the Index of Multiple Deprivation (IMD) measure, which looks at the social deprivation of the school's area.
Schools will be given their final figures by Education Bradford during the Easter break.
Alan Jarvis, Education Bradford's head of school funding, said the scheme was a one-year 'fix-it' project for primary schools, and added that funding per pupil was up 8.7 per cent.
The Council's director of education Phil Green said: "The allocation finally determined reflects the different needs of each school. The financial settlement is quite generous and in real terms, the schools have received a good increase in their budgets."
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