1 demystifying the schools funding formula children and young peoples finance service – september...
TRANSCRIPT
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Demystifying the Schools Funding Formula
Children and Young People’s Finance Service – September 2008
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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
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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 – it’s Complex!
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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’
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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
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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
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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
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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
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In Summary …..
Any Questions?