The Education Authority (EA) board has refused to back a "devastating" draft savings plan.
The board has decided it cannot make £110m in savings without "highly unacceptable and detrimental risks" to children and young people.
That is according to internal EA documents obtained by BBC News NI.
A revised plan to save a reduced amount of £43m by the end of the 2022/23 financial year has also been rejected by the board.
BBC News NI understands that some front-line services to schools may have faced cuts in the £43m savings plan.
Following a board meeting on Tuesday, the Education Authority will now present the Department of Education with "a small number of proposals" for "further consideration".
