Move to reduce Guernsey States funding of colleges
States funding to Guernsey's independent schools will be cut to save £1.11m, if the island's government agrees.
In 2011 the cost to the States of the subsidies was £4.88m.
The Policy Council has put forward six options for saving money as part of the Fundamental Spending Review.
It has recommended the reduction in grants and special place holder fees be phased over seven years starting from September 2012.
In its report the Policy Council said the "colleges play a valuable part in the educational infrastructure of Guernsey".
In 2011 the general grant was £2,179 per pupil across the three schools totalling £2.45m.
The special place holder fees, which in 2011 totalled £2.43m, pays for up to 23 pupils to attend Elizabeth College, another 23 at Ladies College and six students to go to Blanchelande College.
The grants make up a large proportion of the annual revenue of the schools - 55% at Ladies College, 46% at Elizabeth College and 42% at Blanchelande College.
The States is due to debate the proposals at its September meeting.