1. Lancashire Schools Forum School Budget 2015/16, including Recommendations from Chairman’s group on 12 January 15 January 2015

2. Forum Schools Budget Principles General principles Maximisation of delegated resources; Increase in level of AWPU; Maximisation of headroom; Minimise schools in Minimum Funding Guarantee (MFG).

3. Forum Principles for 2015/16 Stability – Minimise turbulence at an individual setting level; Minimum Funding Guarantee (MFG) - DfE set 2015/16 MFG at minus 1.5%; Capping – Apply the same rate as MFG 1.5%; Funding by phase – Maintain at the 2014/15 funding level subject to changes in pupil numbers if headroom will allow; Volume Changes - To aid stability global cash values attributed to each formula factor (excluding AWPU) be limited at the 2014/15 levels by reducing the funding rate; Cost Pressures – To be meet from headroom (if available) in the first instance. Then, if need be, by reducing all unit values excluding the lump sum; Shortfall - All funding rates excluding lump sums are reduced;

4. Forum Principles for 2015/16 (cont) Headroom - Used to increase basic pupil funding in the first instance and prior attainment funding in the Schools Block; Primary prior attainment – Apply a weighting to pupils assessed under the new Early Years Foundation Stage Profile, so that funding is commensurate with the percentage of pupils not reaching 73 points under the old profile; Any one-off funding to be distributed in 2015/16 from underspends in 2013/14 should be accompanied by strong guidance to urge schools to use this funding for one-off expenditure, for example maintenance funding, and not to commit it to ongoing staffing costs or hold it in reserve.

5. Removal of 2014/15 one offs and additional delegation in 2015/16 Removal from funding –2014/15 one off reserves Additional allocations –Formally Termination of employment cost previously held centrally

6. Forecast DSG Income from EFA 2015/16

7. Primary low attainment percentage

8. Schools Block Budget funding rate changes before the addition of one off funding for 2015/16 to the basic entitlement

9. High Needs Top-up We have been able to maintain High Needs top- up rates across all sectors –Primary & Secondary schools / academies –Special Schools –PRUs –FE

10. De-delegation final rates for 2015/16 Confirmed de-delegation rates based on October 2014 pupil data –Schools in financial difficulty £1.528m –Museum service (primary only) £0.181m –Staff Costs Public duties/Suspensions £0.622m –Licences and subscriptions - Due to extensions in DfE negotiated national licencing arrangements, this de-delegation is not required in 2015/16, as the licences are now included in the DfE arrangements

11. De-delegation final rates for 2015/16 Confirmed de-delegation rates based on October census data

12. Capping Proposed cap on funding gains set at 1.5% as per Forum principle, to match MFG

13. MFG Cost 2014/15 2015/16

14. No of schools / Academies in MFG or capped 2014/15 2015/16

15. 2015/16 National Copyright licence arrangements The DfE have informed us that: The amount charged will be around two thirds higher than in 2014 to 2015. This takes into account the four additional national licences, the rise in the number of pupils; the fact that local authority maintained nursery schools will now be covered for their relevant licences, and the inclusion of non-recoupment academies.

16. Due to the changes in 2015/16 National Copyright licence arrangements it has been necessary to increase the central items budget by £300k to cover the likely increase in cost. It should be noted schools and academies have previously had this amount delegated to them, however we do not propose to reduce the unit values to reflect this increased central cost. Central Services and Commissioned Services Budget 2015/16

18. Initial Calculation of funding shortfall

19. Previously agreed use of DSG Reserve The £4.2m in the schools in financial difficulty reserve at 31/03/14 is a separate reserve to the DSG reserve

20. Chairman’s Group Recommendations Chairman's Group met on 12 January to consider 2015/16 Schools Budget proposals Representatives from each Phase invited The following slides set out the recommendations supported by the Chairman’s group

21. Use of One Off Reserves First Call on allocation of one off reserves should be to bridge the shortfall in core funding £2.579m

22. 2016/17 2015/16 is protected by £2.6m of reserves 2016/17 may need to be supported by reserves or reduction in unit values if the same position materialises in 2016/17

23. DSG Reserve

24. One off principles The one off allocations can only be made through top-up factors in HNB, and basic rate in EY, it is therefore equitable that the Primary and Secondary is distributed through the basic element, this is our normal distribution methodology and removes expectation of any increase in lump sum being retained in future years.

25. One off principles The allocation of one off reserves is through the formula in all cases and therefore is equitably distributed across all schools and academies, and maintained and PVI early years providers, including childminders.

26. Forum - One off principles Supported strong guidance accompanying the distribution of this funding in 2015/16 to urge schools to use this funding for one-off expenditure, for example maintenance funding, and not to commit it to on-going staffing costs or hold it in reserve

27. Proposed allocation of remaining one off reserves The one off distribution equates to a 1% increase on each phase or type of funding compared to the DSG allocations of 2014/15. This includes –Mainstream Primary, Mainstream Secondary, 3 & 4 YO, 2 YO, Special, PRU

28. Proposed allocation of remaining one off reserves An £8.0m one off distribution of reserves equates to:

29. Schools Block Budget funding rate changes after the addition of one off funding for 2015/16 to the basic entitlement

30. Proposed allocation of remaining allocation of one off reserves Schools Block – Total Allocation £6.906m –Distributed through basic pupil element EY Block – Total Allocation £0.547m –Distributed through base rate for 2 & 3/4 year olds

31. Proposed allocation of remaining allocation of one off reserves HNB Block – Total Allocation £0.546m –Distributed in special schools through school specific rates –Distributed in PRU through the following top ups Excluded Pupils Primary Support Pupils Medical Pupils Other Pupils

32. Proposed Calculation of funding shortfall

33. Other Models Considered Unfortunately as there is no headroom there were no options to consider for further distribution through factors.

34. Any Questions?

35. Lancashire Schools Forum Eligible to vote: The Forum is asked to: Support the Schools Budget proposals for 2015/16 for the Schools Block, High Needs Block, Early Years Block and Centrally Retained Expenditure; Support the Dedicated Schools Grant Reserve underwriting the uncertainties around the Early Years and High Needs Blocks;

36. Lancashire Schools Forum Eligible to vote: The Forum is asked to: Formally approve the Central Items budget lines requiring Forum agreement (as set out at Appendix B).