The city’s Panel for Educational Policy approved the Department of Education budget allocation formula last night, even as parents, teachers, and some panelists said the formula was harming schools.

Schools Chancellor Joel Klein last night said he understood why “all schools feel relatively underfunded,” but he said that feeling was not the city’s fault. Rather, he said, it’s because Albany hasn’t fulfilled the Campaign for Fiscal Equity court mandate.

“This year, given the resources, I think they flowed in a fair and equitable way,” he said.

While Mr. Klein said he is confident this year’s budget formula is “fair,” his critics – who held a news conference on the steps of Tweed Courthouse yesterday afternoon before flooding the public hearing room – are not.

City Council Member Gale Brewer, who represents the west side of Manhattan, told the panel that a number of schools in her district are facing six-and seven-figure budget cuts.

“We need full restoration of all the funds,” she pleaded.

The president of the teachers union, Randi Weingarten, told the panel she is “pleased” that the city has restored some of the money that it had expected to cut from school budgets, but she said it “is not enough” and that more funds should flow into classrooms.

A mother of a high school student, Frieda Jones, said her child’s school would lose secretaries, assistant principals, school aides, and teachers.

“Please help us,” she said.

Another parent, Robin Brown, said the formula “doesn’t take into account that there are schools with special needs.”

The total schools budget for the coming year is $13 billion, which is $79 million more than last year.

Of that, $55 million will fund elementary-school programs, while $6 million will be sent to large high schools housing new, small high schools, and $13 million will help failing schools.

Last night’s vote came three days after Mr. Klein calmed some critics by announcing that his department would funnel $65 million in newly allocated state funds to schools.

Although there’s more money in the system, some schools are receiving less because of a two-year-old central funding formula, which the education department says will make funding more equitable across the city.

Two panelists, Martine Guerrier and Philip Berry, said they were concerned about the budget formula.

Mr. Berry said he was “pained” by the impact of the formula on schools.

“I don’t feel good about this,” he said before joining the majority in approving the budget motion.

Ms. Guerrier was the lone dissenter among the 13 panelists.

The Department of Education has distributed $32 million of the new $65 million based on need. It has not determined how the remaining $33 million will be distributed.