John Paul College principal Patrick Walsh said mental health in schools was a deep concern, not just in Rotorua, but nationwide, and a top priority for principals.
"When trying to refer students to these mental health agencies we often get told there's a long waiting list or their symptoms are not serious enough.
"It's totally inadequate."
He said schools had seen an increase in youth suffering from anxiety and depression, and at younger ages.
"My big fear is that these youth who are not getting the help they need will end up taking their lives.
"We don't have the expertise in schools to deal with these serious mental health issues but mental health services for schools are appalling."
Mr Walsh said a group of principals had met to discuss the issue and had been impressing on the ministry to find resolutions.
He said his school counsellor did an excellent job but was "overwhelmed" by the increase in students coming for help.
Rotorua Intermediate School pays for two counsellors out of its operational grants.
Principal Garry de Thierry said the expenditure was necessary.
"The world in which children are growing up in has changed and we are seeing more and more needing specialist support, but policies and funding is not changing.
"We saw the need and made the decision to hire our first counsellor. The demand has only grown from there and we reached a point where we had to hire a second counsellor to help with the workload.
"The reality is, if these issues are not worked through at the first stage during primary or intermediate, they become a lot harder to deal with once the child reaches high school.
"At the moment we have an ambulance at the bottom of the cliff situation. What we need is proactive help that fixes the problem at the first instance."
Mokoia Intermediate School principal Deb Epp said the Primary Principals' Association had been trying "for years" to get funded counsellors for younger age groups.
"I can't speak for other regions but Rotorua in particular does not have sufficient resources for mental health help available.
"It would be wonderful if the ministry considered funding counsellors for intermediate and primary schools as there are a lot of young people who need that help.
Ms Epp was previously a counsellor at Rotorua Girls' High School.
She said the issues she was dealing with then, among 15 and 16-year-olds, were now evident in children much younger.
"Early invention in these cases is not only in the best interest of the child but society as it becomes much more expensive to deal with these issues once they reach critical levels."
Mr Dunham said Lakes DHB did fund services into the mainstream high schools across the Lakes region, dedicated drug and alcohol counselling services and the Real in Schools initiative that provided brief intervention counselling support for students experiencing mild to moderate mental health issues.
"These services are often the gateway for high schools to secondary level mental health, when another level of care is needed. All the currently funded services are well used, with the level of demand growing."
He said the DHB was continuing to look at service developments to support young people and would welcome an opportunity to work with schools.
Education Minister Nikki Kaye previously told NZME it was time for a "national conversation" on how New Zealand could teach and build emotional resilience in youth and equip children to deal with the ups and downs of life.
While Ms Kaye conceded that counselling services in schools had been "fragmented in the past", she said some students might not want to see a counsellor on school grounds, some might need to see a psychologist and some may prefer to talk to a social worker.
"We need to do what those children and young people need, rather than how we've arranged ourselves in the past," she said.
"We are keen to do more and we've put a significant investment in the Budget and we are working through what that looks like. We just have to keep putting the foot on the accelerator.
Ministry of Education deputy secretary sector enablement and support Katrina Casey said mental health was part of the compulsory school curriculum at both the primary and secondary level up to Year 10.
"The curriculum requires schools to help students develop competencies for mental wellness, build resilience by strengthening identity and make good life choices.
"The Education Review Office monitors schools' effectiveness in addressing student wellbeing as part of their regular reviews, and we are committed to updating and improving the guidance we provide to schools."
Where to get help
• Lifeline: 0800 543 354 (available 24/7)
• Suicide Crisis Helpline: 0508 828 865 (0508 TAUTOKO) (available 24/7)
• Youthline: 0800 376 633
• Whatsup: 0800 942 8787 (Mon-Fri 1pm to 10pm. Sat-Sun 3pm-10pm)
• Depression helpline: 0800 111 757 (available 24/7)
• Samaritans: 0800 726 666
If it is an emergency and you feel like you or someone else is at risk, call 111.