The Edmonton public school board is warning that some teachers may lose their jobs and class sizes could increase if it doesn't get more funding from the provincial government.

The board has been told by Alberta it won't get a budget increase this year. As a result, it faces a $12-million shortfall to cover salary increases for teachers.

Board chair Don Fleming told CBC News there is enough money to pay salaries for now, but the board is looking at cuts unless the provincial government comes through with more.

"Every year we receive a slight increase in terms of our funding that allows us to meet the commitments we have with our staff group agreements," Fleming said. "And as long as the province doesn't provide additional funds we'll still have to look for efficiencies."

The public board introduced its $823-million budget for the 2010-11 school year on Tuesday night.

The board has about 4,400 teachers on staff. Three hundred are on probationary contracts while the rest have permanent status.

The Edmonton board and other school divisions across the province face cash shortfalls because funding from the province doesn't take into account a pay raise teachers won through arbitration, Fleming said.

Alberta recently backed out of a promise to pay for teachers' salary hikes this fall, leaving some school boards running deficits and others cutting jobs.

Education Minister Dave Hancock said earlier this month that the province will pay for increases eventually but it needs school boards to bridge the gap.

Edmonton trustees will review their budget over the next two weeks, and are expected to make a decision June 15.