Gresford Public School was just one student short of the 78 it needed in the public school census, that determines how funds and resources are dished out.

It would have seen the school lose an entire classroom, with students squashed into a double composite and two triple composite classes across multiple stages, Gresford P&C president Tracy Merchant said.

"I feel like it's not an error, it's that we've caused a bit of noise about it," she said.

"If they had just said initially that we're one number below and we are on notice until enrolments next year we would have understood - but if we didn't fight and send letters I think they would have gone through with it.

"Maybe they did expect us to just say, 'oh okay, that's what it is' - but we didn't. As soon as we heard it we all started writing letters, we had a meeting on Monday night with councillors from Dungog ... I think it's a case of the squeaky gate gets the oil."

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The state's public schools are staffed in-line with a formula based on student enrolment, and each year principals submit their figures during a set time period in Term 1.

That number is used to confirm each school's permanent staffing for the year. If student enrolments increase, there are opportunities to submit revised figures and have staff numbers adjusted.

A NSW Department of Education spokesman confirmed there had been an error in a review of Gresford's enrolment data, but did not confirm what the oversight was.

"... this has now been rectified, and there will be no change to current staffing," he said.

Upper Hunter MP Dave Layzell said it was important to look at the bigger picture when staffing small schools.

"The department does an assessment based on the number of kids and that's very black and white," he said.

"There's a lot of development in that area and we know people are moving to Gresford, so we want to make sure we keep that classroom and teacher.

"These teachers are part of the community already, they work very hard and we want to keep them - we don't want to lose them.

"Regional NSW will always have this challenge with the numbers that change, because we are smaller than urban areas and that can affect assessment of allocation."

There have been exceptions to the rule before, Mr Layzell said not far from Gresford, Martin's Creek Public School has far lower student numbers but there has consistently been a commitment to keep it open.

Gresford Public School lost about six of its students to home-schooling during the pandemic, who chose not to get vaccinated against COVID-19.

There is the possibility those students may return in a few months, Mr Layzell said, bumping student numbers back up.

"It's really good advocacy from the community who raised the issue and really worked hard - I have a good file of objections which always helps," he said.

It was certainly welcome news for the local P&C, after two years of disruption thanks to COVID-19, Ms Merchant said.

"Our school is trying hard with extra programs and buying resources for new programs to help our children," she said.

"It would have affected the whole community, because we aren't that far from Catholic or private schools so if we dropped back and went to two triple composite classes over two stages, how can they get the same education? It's not possible.

"There would be parents in our community now who would reassess and send their children elsewhere."

The NSW Department of Education confirmed there would be no funding changes for Gresford Public School.

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