1. LASGB Summer Conferences School Funding 2017/18 Kevin Smith, Financial Adviser Financial Management: Development & Schools

2. Forecast DSG for 2017/18 Forecast DSG Income £m Schools Block 714.67
Early Years Block
68.33
High Needs Block
98.82
Total forecast DSG Income
881.82

3. DSG allocated to £m Schools Block Mainstream Non High Needs Block
710.59
Early Years Block 3/4 year olds
57.08
Early Years Block 2 year olds
11.04
High Needs Block (HNB)
HNB Mainstream
6.17
HNB Special Schools
52.22
HNB PRU Places
10.00
HNB PRU WPN
0.05
HNB FE
5.54
Centrally retained budget
37.16
Total of Allocations
889.85

4. Calculation of overall funding shortfall
Funding Stream £m
Total forecast DSG income funding available 2017/18
881.82
Release of reserves in connection with 2017/18 strategic reserve de-delegation proposals
4.54
Total Income 2017/18
886.36
Total DSG Allocations 2017/18
889.85
Surplus/(Shortfall) in funding
(3.49)
Release from reserves to bridge funding gap
3.49

5. Budget Principles Applied
General principles
Maximisation of delegated resources;
Increase in level of AWPU;
Maximisation of headroom;
Minimise schools in Minimum Funding Guarantee (MFG).
By increasing AWPU rates
By moving High Needs growth from Central Items to schools budgets
By maximising headroom through CLA adjustment

6. Key 2017/18 Budget Headlines
Funding blocks ring-fenced ahead of national requirements
Children Looked After (CLA) funding envelope held at the 2016/17 level ahead of national changes to remove CLA funding from the school funding formula
Income Deprivation Affecting Children Index (IDACI) allocations calculated to achieve minimum turbulence and minimum cost pressures on the schools budget
A small amount of headroom within the Schools Block targeted at the Age Weighted Pupil Unit (AWPU)
High Needs Block top-up rates across all sectors protected at the 2016/17 levels 

7. Schools Block Budget funding rate changes
Removed
Maintain envelope
Strategic Reserve
Headroom
Final 2017/18 Rates
Primary
Secondary
Basic Entitlement
-12.93
-16.44
23.90
30.36
5.50
7.00
2,852.91
4,100.69
Lump Sum
155,000.00
160,000.00
Split Site
6th Form DSG  
0.00
Prior Attainment
334.35
327.95
EAL
291.38
246.63
CLA
-96.70
860.04
FSM
580.59
999.04
IDACI Band F
113.41
450.00
IDACI Band E
186.31
800.00
IDACI Band D
283.51
1,050.00
IDACI Band C
-18.47 
 -69.00
289.34
1,081.00
IDACI Band B
 -32.08
 -87.50
324.33
1,162.50
IDACI Band A
 -36.45  
368.56
1,196.00

8. CEL Alterations
Based on either updated EFA guidance or working group recommendations
The inclusion of £2.59m of Education Services Grant (ESG) retained duties funding that has been transferred into the DSG schools block for 2017/18;
Following recommendations of the High Needs Block Working Group on 6 December 2016 around 'combined budgets', the provision against this budget line has increased from that originally presented to the Working Group, although this still reflects a reduced level to that in 2016/17;
Reductions in the Growth Fund provision shown in the original presentation to the Working Groups have been reversed after new information emerged about possible future demands on the fund relating to lead-in costs at new academies where they are created to meet basic need;
£150k has been identified in the Early Years Block central items for early years inclusion funding, which was previously subsumed in the High Needs Block.

9. Education Service Grant (ESG)
Retained duties amount for all schools including academies £2.59m
EFA transferred into DSG as a separately identified amount
As previously agreed in principle to be transferred to the LA
It has subsequently been incorporated within the Central Expenditure Limit
General duties amount - guidance allows LA to request additional amount from maintained schools budget shares, with agreement from maintained members of schools forum
Lancashire has no proposals to request additional funding from schools budget
Officers are considering options for forum regarding recirculation of current Central Expenditure and current de-delegations to manage any impacts on services to schools and maintain necessary support for schools
De-delegate further funding for additional school improvement provision

10. Proposed allocation of Strategic reserve & de-delegation back to LA
Delegate
De-Delegate
Primary Basic Pupil Element per pupil
£23.90
-£23.90
Secondary Basic Pupil Element per pupil
£30.36
-£30.36
Special per school specific
£117.08
-£117.08
PRU per top-up (pupil based)
£72.10
-£72.10

11. For Future
DfE considering response to Schools National Funding Formula (SNFF) & High Needs Funding Reform
Need to await the steer from the new government
Current proposals create significant turbulence in Lancashire, with 2/3 of schools losing

12. Any Questions?