PRIMARY SCHOOL BUSINESS MANAGERS NETWORK:June 2012

Angela Farmer

School Funding ReformMAIN PRINCIPLES• Increased delegation of services & funding to schools• Number of formula factors permitted to be reduced to 10 • DSG funding will be allocated in 3 notional blocks ie

Schools, Early Years and High Needs block• Schools block to be based on October pupil numbers, with

the expectation that school budgets can be set earlier• High needs block will cover funding for high needs pupils

from birth to 25• MFG of -1.5% per pupil to continue in 13/14 & 14/15

Permitted Formula Factors• Per pupil element with single amount for primary pupils & either a

single amount for secondary pupils or different values for KS3 & KS4• Deprivation: basis for allocation is FSM and/or Income Deprivation

Affecting Children Index (IDACI)• Looked After Children• Low cost, high incidence SEN: basis for allocation is attainment

(EYFSP for primary and KS2 secondary)• EAL (max of 3 years per individual pupil)• Lump sum of limited size: same amount for all schools• Split sites• Rates• PFI• London fringe area

Kirklees Factors No Longer Permitted

• KS1 class size• Small schools protection• Premises factors• Teaching cost adjustment• 5% loss protection• Advanced skills teacher support funding• Specialist schools funding

Exceptional Circumstances

• The Education Funding Agency (EFA) has discretion to consider exceptional circumstances relating to premises such as rented buildings & swimming pools.

• Must apply to less than 5% of schools in LA• Account for more than 1% of the budget of

the school or schools affected

New Delegation – Centrally Funded Services

• Expectation is that funding for central services, within the schools block, should be delegated to schools in the first instance.

• There are 3 exceptions to this. Exceptions have to be agreed by maintained schools in a phase collectively, through Schools Forum

• In these circumstances, funding can either be returned or retained by the LA for central provision of the service

Exception 1: schools agree service should be provided centrally

Support for schools in financial difficulties Contingencies FSM eligibility InsuranceLicences/SubscriptionsStaff Costs: long term sickness, maternity, trade union &

public duties) Support for minority ethnic pupils or underachieving groups Behaviour support services Library & museum services

Contingencies

A contingency budget can only be retained centrally for limited circumstances:

• Schools in financial difficulties• Additional costs relating to new, re-organised

or closing schools• Significant pupil growth• Exceptional unforeseen costs where

unreasonable for GB to meet.

Exception 2: Historic Commitments

Services where costs are historic or activity normally funded from wider LA budgets

• Contribution to combined services• Redundancy costs• Revenue contribution to capital expenditure• Transport for pupils with SEN

(Such expenditure must meet certain criteria ie as providing a saving to the budget for schools or an educational benefit)

Exception 3: LA Statutory Functions

Services that have been met through the budget for schools, which relate to statutory functions of the authority :

• Co-ordinated admissions scheme• Servicing schools forum• Carbon reduction commitment• Capital expenditure funded from revenue

Exceptions 2 & 3

• Expenditure will be allowed up to the total budgeted for in 2012/13ie: no new commitments or additional expenditure will be allowed

• Funding for threshold & performance pay is not an exception and therefore will be delegated by formula

High Needs Block

• A high needs pupil is identified as one requiring provision costing £10k or more

• Mainstream schools will be expected to provide the first £10k from their budget (£4k AWPU & £6K notional SEN)

• Where agreed, top ups to this will be provided from the High Needs funding block

• Special schools, RP units and alternative provisions will be funded from the High Needs Block

High Needs Block

Special Schools & RP unitsFunding will be based on 2 factors only:i) Base place allocation of £10kii) Top up funding ie costs in excess of the base

allocationAP units will receive base place allocation of £8kplus top up funding

EARLY YEARS

• No major changes proposed• The LA will now be funded for these pupils on

the basis of termly counts rather than just the January census