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

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

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

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

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

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 

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 -359.81  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  -104.00 368.56 1,196.00

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.

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

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

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

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