Welsh debt alert
The Further Education Funding Council for Wales predicts total college debts will rise to Pounds 7.5 million by 2000.
Twenty-one colleges, three-quarters of the Welsh sector, forecast deficits.
FEFCW staff warned that cuts would mean equipment being increasingly outdated, and deteriorating buildings.
Director of finance Richard Hirst said; "The overall position of the sector is extremely worrying despite the remedial actions institutions have taken to reduce staff costs and delay expenditure on capital and educational developments."