1. 1 Demystifying the Schools Funding Formula Children and Young Peoples Finance Service – September 2008

2. 2 General Background Schools Budget funded by ringfenced Dedicated Schools Grant (DSG) Financing regulations determine the content of the Schools Budget and LEA Budget The Schools Budget has two constituent parts – The Individual Schools Budget – delegated to schools by the Funding Formula Centrally managed Schools Budget – centrally retained to meet costs such as SEN, Early Years

3. 3 What Is the Funding Formula? A mechanism to ensure a equitable and transparent allocation of a fixed resource to all schools Defined by national regulation but able to take into account local requirements if supported within the legislation Can differentiate between school categories but cannot differentiate between schools in those categories Maintains a balance between simplicity and the need to deliver funding for particular circumstances Result – its Complex!

4. 4 Development of the Funding Formula Uses factors that are proxy indicators of cost Remnants of past governmental delegation requirements – e.g. % pupil lead funding, minimum AWPU increases Local delegation strategies - e.g. SEN funding, former teacher pay grants Legislative requirements – e.g. Minimum Funding Guarantee DCSF expectations associated with Ministerial Priorities

5. 5 What is in the Funding Formula and Why? Age Weighted Pupil Unit – the number of pupils on role in January immediately preceding the financial year (school places in special schools) Ghost Pupils – additional funding to ensure that schools are able to meet the KS1 class size initiative LSC Funding – received from the LSC for schools sixth forms, local authority purely acts as banker

6. 6 What is in the Formula and Why? Special Educational Needs – determined with reference to prior attainment and the index of multiple deprivation to reflect the cost of those pupils that may require additional support Site Specific Factors – Funding to recognise the cost of occupation of property based upon site and building size Small School Protection – determined by size of school to recognise schools have overheads irrespective of pupil numbers Minimum Funding Guarantee

7. 7 Funding Schools Outside the Formula Not allowed under the financing regulations Retrospective pupil number adjustments prohibited Schools able to access contingency funding in certain circumstances BUT only where they experience unexpected pupil number growth or unexpected SEN costs Jeopardises the objectivity of the formula

8. 8 Administrative Arrangements Formula is published annually in the Section 52 Budget Statement – this is a public document and available on the County Council Website – contains details of all budgets for maintained schools and local authority expenditure Reviewed by the Schools (Funding) Forum – needs to be fit for purpose Amended after consultation with schools with Forum approval Historically, amended incrementally - responding to the environment, funding arrangements and DCSF expectations Tends to be built upon rather than reviewed Ability for changes within a defined multi-year period are limited

9. 9 In Summary ….. Any Questions?