The state government's controversial TAFE reforms have driven away more than 30,000 students this year and at least 2500 TAFE staff have lost their jobs since 2012, the budget papers reveal.

TAFE enrolments have been significantly declining since 2012, the papers show, with overall student numbers plummeting by more than 83,000 in just three years. The number of Aboriginal students and students with a disability have also dropped.

The government's so-called Smart and Skilled reforms, which began on January 1 this year, saw many course fees rise substantially and coincided with the collapse of a new computerised enrolment system.

This led to school leavers baulking at vocational training with the latest figures showing that certificate III enrolments dropped by 18,073 students. For certificate IV, there were 10,568 fewer enrolments this year than last year.

The state government has conceded that Smart and Skilled has driven away students.

"Enrolments in 2015 reflect a lower than expected market response to Smart and Skilled reforms in the transitional stage since its start in January 2015," the budget paper says.

But the Minister for Skills, John Barilaro, said enrolments in diplomas were expected to rise by 10,000 this year.

"This increase in higher level qualifications is a direct result of industry demand.  The NSW Government's policy is to invest in qualifications that directly leads to jobs," Mr Barilaro said.

The opposition's skills spokesman, David Harris, said the marked decline in enrolments this year was a clear result of fee increases.

"The result of the government hanging TAFE out to dry will be a massive skills shortage and further increases in unemployment," Mr Harris said.

The Greens MP, John Kaye, said TAFE's secure budget had been slashed this year and it would be forced to be compete for funding.

"In 2015/16, TAFE will have to compete against for-profit corporations and other private providers for 33 percent of total vocational education and training budget, up from 27 percent last year," Dr Kaye said.

"At this rate TAFE will rapidly fall below the 50 percent line at which it is no longer the dominant post-school education system."

Mr Barilaro said the government had been "very clear its commitment to retaining TAFE NSW as the public provider of vocational education and training in this State."

"TAFE will secure a similar level of contestable funding in 2015/16," Mr Barilaro said.

In other education measures, the government will fund more than 230 new school counsellors and 200 student support officers.

The budget also sets aside $160 million to fast-track the building of a much-needed new high school on Cleveland Street in the inner city as well as a new high school in Ballina and the redevelopment of Arthur Phillip High in Parramatta.

Demountables at Cherrybrook Technology High will be replaced with new classrooms and the chronically overcrowded Artarmon Public will also get new buildings.

But there was no funding for several other north shore schools that are also bursting at the seams, including Willoughby.

The budget also provides $12.5 million for capital works for private and Catholic schools.