The industry and natural resources faculty, which offers manufacturing, engineering and construction trades at 13 campuses, is more than $1 million in the red.

Its students, who are mainly apprentices, have complained teaching hours have been reduced, or tried to be reduced, and there were more students in fewer classes.

The teachers union said it had received reports that part-time and casual staff hours had been cut, putting more load on permanent teachers.

The TAFE on Monday initially blamed industrial action by teachers but went quiet on the subject yesterday following developments in wage negotiations at a state level.

Hunter TAFE acting director Christine Warrington said a number of factors had contributed to the faculty's budget position.

"In second semester 2009, the faculty had additional unexpected enrolments in apprenticeship programs," Ms Warrington said.

"In semester 1, 2010, some courses have been running with class sizes below capacity [increasing costs]."

She said the faculty was over its budget for the year-to-date but management was working with staff to bring their expenditure into line by the end of the financial year.

The financial woes come after Hospitality students at Maitland Campus complained last week that course time had been cut from 10 hours to three hours a week, which the TAFE said was a separate issue.

The institution was also accused last year of inflating fees for new workplace courses in 2010, which it said was because they were not government-subsidised.

NSW Teachers Federation Hunter TAFE organiser Chris Freestone said the budget blow out was a symptom of TAFE under-funding in general.

‘‘Governments haven’t been taking their funding of TAFE totally seriously – they’ve been holding back,’’ he said.

? TAFE teachers have had a breakthrough in their pay dispute with the NSW Government.

Teachers are expected to meet around the state tomorrow to consider a revised offer from the Government.

NSW Teachers Federation Hunter TAFE organiser Chris Freestone said Hunter teachers would meet at Adamstown.

‘‘With any negotiated settlement no sides achieves everything they want,’’ he said.