EVERY school in Darlington will be out of debt by March, according to the local education authority (LEA).

This is a landmark for schools and education officers in the town who struggled to get back into credit to meet Government requirements.

Three years ago six schools in the borough had run into the red, cash-strapped because of low levels of funding from the Government and increasing cash pressures.

It is a constant problem for Darlington, which has one of the lowest levels of funding per pupil in the country.

LEA officers pumped extra money into the schools which had fallen into deficit, and at the start of the new financial year this April, every school in the town will have a balance of zero or above.

Paul Campbell, assistant director of client services in the education department, said: "About three years ago we recognised that some schools were going into deficit and we started challenging the choices they had made."

He said they had a good relationship with all the schools.

"Some schools still have too much money saved, but we are working with them to change that,"he added.

Schools have become more and more responsible for their own finances, and all secondary schools in the borough now have their own finance officers.

Mr Campbell said the borough had ploughed £80m of capital money into school buildings, including £50m from capital bids. "We seek any opportunity to get more money into schools, and we always look to make the best out of our resources."

A major Government investment programme, Building Schools for the Future (BSFF), promised to transform every secondary school building in the country.

However, the programme is being rolled out slowly and Darlington may have to wait for about ten years before it gets the much-needed cash.

Mr Campbell said officers would be meeting with the Department for Education and Skills within two months to discuss BSFF.

The finance team at Darlington has been shortlisted as the finance team of the year in the Government 'oscars', the Local Government Chronicle awards.