Plan will now be forwarded to the education minister

It said the move - which would save �4.8m - finalised the Financial Recovery Plan by which it would remain within budget for the current financial year.

Documents showed the board could have an overspend for the current year alone of almost �15m.

The SEELB, which has a budget of almost �220m, had originally said the deficit was about �5.7m.

But the DUP's Sammy Wilson says the figure was reduced by subtracting the �12m of surplus money which schools have been "squirreling away".

Schools have been warned not to spend their surpluses until they see what their budgets are for next year.

Following Tuesday's crisis meeting, the board said the new measures meant limited assistance would be available to schools to meet any unforeseen circumstances or pressures which may emerge.

Only pressing health and safety issues would be addressed and all temporary and agency staff released and all recruitment stopped at the board's headquarters, it said.

The SEELB said its contingency fund would be reduced, the school libraries fund reduced and savings identified in provision of transport services.

The board would stress that such actions are not sustainable for more than the current financial year without directly impacting on the education of the children in its area SEELB

The board said that without any actions, initial projections had suggested an end of year deficit of �14.8m.

It said the new plan "aims to avoid any direct impact on the education of our children or on the provision of front line services".

It said schools would also be requested to make savings in their 2004/5 delegated budgets.

The current financial crisis had arisen largely as a consequence of increased expenditure in demand led services - especially special education and transport - said the SEELB.

The plan will now be forwarded to Education Minister Barry Gardiner.

BBC Northern Ireland education correspondent Maggie Taggart: "It is a very confusing situation, because we know that the board - if it hadn't done anything - was going to go into an overspend of �15m.

"They are now saying that by acting early - half way through the financial year - they need only save �4.8m and that that will put them into the black.

"It is a bit confusing how that is worked out because, in fact, despite pleas from trade unions and some members of the board, the board went into committee - into private - to discuss this, so we don't know the details of it."

'Holistic way'

A board spokesman said it had "consistently put the needs of children and young people at the heart of its decision making processes".

"The board would stress that such actions are not sustainable for more than the current financial year without directly impacting on the education of the children in its area," he said.

"The board expressed its complete confidence in the chief executive and senior officers to implement this plan and hence live within budget in the current financial year."

The board urged the minister and department to continue to work with it to ensure education funding "is addressed in a holistic way".

Last week, the chief executive of the Belfast Education and Library Board was suspended after a meeting on its overspend.

The board ran up a deficit of about �5m in the last financial year and is predicting another multi-million pound shortfall in this one.

It said that the decision to suspend David Cargo was a "precautionary" measure which is not a "presumption of any guilt".

An "external and independent" review of the board's financial deficit has been launched.