LAKE Illawarra High School was among the big winners from the state government's Resource Allocation Model announced last week.
However, cutting of funds to other schools in the region has drawn criticism.
Liberal Kiama MP Gareth Ward announced $1.78 million in extra funding for public schools throughout the electorate in 2014 to be delivered through the RAM.
Base funding for all public schools next year remains the same, but they will receive extra resources for Aboriginal students and those from disadvantaged backgrounds, from a $300 million pool.
"The RAM distributes funding to public schools on a needs basis and funding provided to schools will directly reflect the characteristics of individual schools and their students," Mr Ward said.
"$300 million is being distributed across all public schools in NSW on the two new loadings for socio-economic and Aboriginal backgrounds; $100 million of this is additional funding which was made possible by the Gonski Agreement.
"The socio-economic equity loading will fund more than 390,000 students from low socio-economic backgrounds across NSW, which is more than three times the 120,000 students who are supported now.
"All 49,000 students with an Aboriginal background will receive funding under the new Aboriginal background loading, which is more than twice the number of students currently receiving additional support."
Schools to benefit from increased funding include Albion Park High School ($244,651); Albion Park Public School ($103,389); Albion Park Rail Public School ($361,395); Mount Terry Public School ($57,040); Shell Cove Public School ($22,360) and Tullimbar Public School ($21,409).
Among the recipients in the Shellharbour electorate is Lake Illawarra High, which will receive an additional $619,873.
Lake Illawarra High principal Tony Hicks said while the school had an idea where the increased funding would be used, they had yet to make a decision.
"We want to consult with the school community, to make sure what we do is of the greatest benefit to our kids," he said.
Mr Hicks said areas of need to assist their 730 students included academic performance and welfare support.
"We are a low socio-economic school, and it's a really fair way of providing assistance," he said.
"Our students have been identified as needing a bit of extra support and they're providing it for us, which is great."
Labor Shellharbour MP Anna Watson was "outraged" that three schools in the Shellharbour electorate would lose up to $111,000.
Ms Watson said that even when the 2014 Aboriginal Loading component of funding was included, the three local schools still face a funding cut of up to $77,084.
The schools to have funding cuts in Shellharbour are Lake Illawarra South Public School ($26,237), Mt Warrigal Public School ($45,200) and Oak Flats Public School ($39,388).
"This is simply disgraceful and unacceptable," Ms Watson said.
"The three schools at issue in my electorate cover some of the most disadvantaged areas in my electorate.
" Every school was meant to be funded on a clear needs-basis under the Gonski reforms, and that meant no cuts to any school."