Welsh Conservatives will today call for education funding to be targeted at schools, to help eliminate wasteful bureaucracy.
Figures obtained by the Welsh Conservatives show that 4% of school funding, or £102million is eaten up by Local Education Authorities.
Figures reveal that 2009-10 saw an increase of 38.8% in bureaucratic costs from the previous year.
Welsh Conservatives cite the proposal as an example of where waste in public services can be eliminated without affecting the standard of delivery of frontline services.
Shadow Minister for Education Paul Davies AM said, "At a time when budgets are being squeezed, the public needs to have confidence that every penny is being spent wisely.
"The costs associated with administering schools funding have been steadily increasing and now cost the taxpayer over £100million every year.
"Welsh Conservatives want to streamline the funding system so that schools are funded directly from the Welsh Assembly Government. This improves accountability by making Ministers ultimately responsible for school funding and means they are no longer able to avoid responsibility for tough financial settlements.
"Welsh Conservative proposals to directly fund schools would give greater flexibility and control to teachers, parents and governors over their school's priorities.
"It is clear that the education sector faces a challenging period as all parties have accepted that cuts to education will need to be made. Labour-Plaid's budget has planned for real terms cuts to the education portfolio.
"It is now the duty of all parties to ensure that education cuts are targeted carefully at inefficiencies, including funding mechanisms."