State Education Minister Adrian Piccoli announced plans to slash $1.7 billion from the education budget, with public, independent and Catholic schools all in the firing line.

Federal Minister for School Education Peter Garrett says he is seeking an urgent meeting with his New South Wales counterpart to discuss the state funding cuts for the sector, unveiled yesterday.

Peter Garrett says under the Gonski review of school funding, more money - not less - is needed.

"This is a very disappointing decision," he said.

"I want it clear that it is not acceptable in any way for any potential increased Commonwealth funding to be used as a substitute for reductions in state funding for schools.

"I'm seeking an urgent meeting with the New South Wales Government minister to discuss these matters."

Mr Garrett says it was only on Friday that state ministers held their first hook up to discuss overhauling the funding system.

"I think that this decision is bad news for New South Wales students and their families."

TAFE will lose 800 jobs, fees will rise and a scheme to get apprentices and trainees into jobs has been axed from next year.

The not-for-profit scheme helps thousands of jobseekers.

Group Training Australia's head Jim Barron says the decision was unexpected.

"Totally out of the blue, no consultation, we are deeply disappointed and shocked at the decision," he said.

Strike warning

Unions are warning of protests and disruptions, if the cuts go ahead.

Mark Lennon from Unions New South Wales says unions are gearing up to fight the cuts.

"I would suspect that any ongoing campaign would also involve forms of industrial action," he warned.

This morning Mr Piccoli was continuing to argue the cuts were essential to ensure the state's financial viability.

He says consultation started yesterday on where the 800 jobs will go in the TAFE system.

The minister also says he is hopeful the private sector may step in to fill some gaps.

"One of the schemes that was stopped as of yesterday is a scheme that's funded by the Commonwealth as well as the private sector, and New South Wales made a relatively small contribution to it," he said.

"We certainly hope that difference is picked up by the private sector."

Premier denies backbenchers unhappy

The Premier Barry O'Farrell has rejected suggestions that his backbenchers are overwhelmingly against the budgets cuts to education.

The Government held a marathon joint party room meeting yesterday to discuss the changes before they were announced.

Mr O'Farrell has not denied that numerous MPs spoke out against the changes, but says it is not true that only one backbencher spoke in support of them.

"You weren't there, I was," he said.

"Your characterisation, you've just said all the speakers were against it, that's not true, that's not true. that's not true,"

"At the end of the day the party room had an opportunity to indicate that they were opposed to what we were about to do, they endorsed by summing up," Mr O'Farrell said.

"When they're not happy with the decision they certainly express their view when I make the summation that did not happen yesterday."

He says the party room endorsed the decision and the Government is united over the issue.