School Funding Reform

1. School Funding Reform Consultation on the local funding formula for 2013/14

2. Agenda • Key messages • Context of the school funding reforms • Principles • Current funding system • Our approach to the reforms • Reformed funding system • Consultation questions

3. Key messages • No schools or academies will lose on a per pupil basis as a result of the new formula in 2013/14 • We are unable to model this at this stage – need October pupil numbers • The figures are only illustrative – they do not represent your actual budget for 2013/14 • Its important that you read the consultation document, don’t look at the figures in isolation

4. Context of the school funding reforms • Nottinghamshire is a high delegating authority • Significant protection and investment in school budgets from the County Council e.g. cost of academy deficits, job evaluation • Campaigning through the f40 group for fairer levels of funding across the country

5. Context of the school funding reforms • School funding reforms are a national initiative – local authorities must implement these for April 2013 • Reforms do not address the inequity in the level of funding across the country - focus on the redistribution of current levels of funding • Commitment in Nottinghamshire to ensure that any losses are minimised

6. Principles • The new system is designed to be • Simple • Transparent • Fair • When answering the consultation consider are our proposals in line with these principles?

7. Current funding system Total school budget =

8. Our approach to the reforms • Schools Forum involvement from the outset – working in partnership • Restricted by the new allowable formula factors determined by the DfE • Drive to increase pupil funding – budgets should driven by pupils not school circumstances

9. Our approach to the reforms • Moving to the new funding formula creates turbulence • The Schools Forum and the County Council want to minimise this • Transition package over 3 years – achieved through a gains cap to minimise losses and additional County Council funds

10. Our approach to the reforms Temporary additional County Council funding Gains cap – recycled back into the formula for distribution Local funding formula – calculates a total amount of funding per school or academy

11. Current funding system Dedicated Schools Grant Individual school budgets Distributed by local funding formula to individual schools and academies

12. Reformed funding system • New funding system changes the method of distribution Dedicated Schools Grant Individual school budgets Distributed by local funding formula to individual schools and academies

13. Mandatory factors –Questions 1 to 8 • Aim is to balance the principles of the reforms and to minimise any turbulence • Achieved by mapping existing factors to the most appropriate new factor • Keeping the percentages driven out through these factors the same • Maintaining the funding ratios between the primary and secondary sectors

14. Optional factors –Questions 9 to 22 • Individual proposals for each factor are outlined in the consultation – should we have the factor and how should it be distributed? • Factors are included in the formula where they represent an additional cost

15. Optional factors –Questions 9 to 22 • New factor proposed for looked after children • Recognition that funding should be specifically targeted at the most vulnerable children • Supports closing the gap for these children

16. Protections and limiting gains –Question 23 • The application of the new formula results in losses and gains for individual schools and academies • Smooth the transition from the existing formula to the new formula by applying a gains cap • Allows those affected time to plan for the change in funding levels

17. Protections and limiting gains –Question 23 • Cap works by allowing a maximum gain on the per pupil level of funding - funds generated by the cap are redistributed through the basic per pupil entitlement • Gains cap tapered on a sliding scale over three years • Additional funding provided from the County Council in 2013/14 to support the transition process

18. Centrally retained funding – Questions 24 to 27 • Funding should be delegated to schools at the outset • Central retention of some services and funding will still be permitted • Statutory functions and historic commitments • Option of de-delegating funding for maintained schools for limited services

19. High Needs (SEN) and Early Years • The reforms also outline changes to the funding arrangements for High Needs (SEN) pupils and Early Years • Key changes in these areas are outlined in the consultation • Separate consultations will take place on the detail of the reforms in these areas

20. Key messages • No schools or academies will lose on a per pupil basis as a result of the new formula in 2013/14 • We are unable to model this at this stage – need October pupil numbers • The figures are only illustrative – they do not represent your actual budget for 2013/14 • It’s important that you read the consultation document, don’t look at the figures in isolation