SYDNEY, June 14 - The funding boost aims to cater for the state's increasing student population, set to hit around 164,000 by 2031, with 170 new or upgraded schools expected and plans in next week's budget for 20 to start this year, Fairfax Media reports.

"We are in the midst of a school building program NSW has never before experienced and this year's budget takes this to a whole new level," Premier Gladys Berejiklian said on Thursday.

"I am proud that our government is making this unprecedented investment into schools and our students."

New primary schools are set for Green Square, Westmead, Rhodes East, Edmondson Park, Gregory Hills and Murrumbateman in the southern tablelands, while a new high school will be built in Edmondson Park, with upgrades to Randwick Boys and Girls, Birrong Boys and Girls, and Cecil Hills High.

As part of the program, up to 1000 schools will receive air conditioning at a cost of $500 million.

Berejiklian, Treasurer Dominic Perrottet and Education Minister Rob Stokes announced the Cooler Classrooms policy, which will ease conditions and "provide improved learning environments" in thousands of classrooms and libraries across the state.

"This funding will ensure thousands of classrooms that previously did not have air conditioning will now receive it," Berejiklian said in a statement.

The air-conditioning program will target schools with the greatest need in metropolitan, regional and remote areas and to ensure the initiative is sustainable, power required will be offset by power generated by solar panels and, where possible, supported with battery storage.

AAP