He is calling for urgent action from ministers to deal with the problem.
He said: “It will be virtually impossible for Vale schools to address deficits without a fair funding settlement.
“Plaid Cymru separatist ministers must stop wasting resources on their pro-Welsh independence pact with Sinn Fein and fund Vale schools instead.”
Mr Davies raised the issue during a recent Senedd session, urging education minister Anna Brychan to push for additional funding in the current budget round.
He said: “Many schools in the Vale of Glamorgan and Bridgend are in a deficit situation and are looking to you as a new minister to secure additional funding in the current budget settlement round.”
Ms Brychan defended the government’s record, highlighting a recent increase in core funding for local authorities.
She said: “He may remember, in the last budget negotiations, that an additional £112.8 million was sourced for local government, which resulted in £6.56 billion in core funding for local authorities, and that is an increase of 4.5 per cent.”
She acknowledged the financial pressures facing schools but emphasised the government’s commitment to education.
The Welsh Government said: “We recognise the financial pressures schools and local authorities are facing. Decisions on the level of funding available to schools and to other services are made by each authority as part of their overall budget and council tax setting.
“Through reforms to school funding regulations, we are working with local authorities to improve transparency in school funding. These changes will make it clearer to see how funding is allocated and spent, and whether resources are delivering improved outcomes for learners.”
Vale of Glamorgan Council has already presented an action plan to its cabinet following an Audit Wales review of school balances.
A spokesperson for Vale of Glamorgan Council said: “Schools’ financial pressures have intensified in recent years due to rising costs, increased demand for Additional Learning Needs (ALN) provision and Social, Emotional and Mental Health (SEMH) support.
“Meanwhile, funding has not kept pace with these pressures.”
The council emphasised its ongoing support for schools facing financial difficulties.
The spokesperson added: “We have been working with schools facing financial challenges for some time, and this support will continue as they work towards sustainable financial positions that enable them to deliver shared priorities for teaching and learning.”
The council’s role includes monitoring school budgets, offering advice, and intervening when financial positions become unsustainable.
