Agenda item

Please note this will be the substantive item for discussion at the meeting and will be an update from the 2018/19 School Funding Formula workshop being held on November 2^nd and an update on the next steps. Due to timing it will not be possible to provide advance reports for this item.

Jenny Lawrence introduced a report which sets out the proposed local authority approach to consultation on options for the 2018/19 School Funding Formula in response to the introduction of the National Funding Formula.  Jenny apologised for the paper being circulated to members late.  This was due to the data being delayed from the DfE and the working party not being able to meet until 2 November.

Jenny reported that the working party had considered the modelling of options for 2018/19 NFF and three approaches were possible as outlined in the report.  Jenny added that some changes had been made to the original announcement in December 2016 which are outlined in the report.  Jenny highlighted that no school would see a decrease in their cash budget within the NFF.  A minimum per pupil funding level would be introduced under the NFF as outlined in the report. 

Jenny outlined some of the issues the working party discussed including the split around the primary/secondary funding, the high lump sum used and the primary to secondary funding ratio.  Discussion had taken place on the implications for schools with regard to the national reduction of the lump sum which has been reduced by £40K. 

Jenny said that options were presented at the working party on a mechanism to be adopted should costs for school rates, new school growth and age range changes exceed previous allocation.

David Thomas highlighted two areas for Forum to note; the implications of not following the NFF principles, the overall level of prior attainment -moving money to the lump sum and any impact upon future school budget baselines.

Jenny circulated to the meeting graphs which show the impact of the NFF and the spread of gains across all Leicestershire primary and secondary schools.  These provide an overview of the per pupil % increases for all primary and secondary schools delivered by the proposals ordered by school size and 2017/18 deprivation funding per pupil.  The front page demonstrates four tables which show what was generated through the NFF and the change in terms of modelling for 2018/19 and 2019/20.  The meeting noted that 2 secondary schools show a budget reduction within the diagrams; these are schools subject to mergers and the budget reduction is expected and not related to the introduction of the NFF.

Following comments within the working group further modelling on the impact of the changes to lump sum, prior attainment and deprivation had been undertaken on secondary school budgets. Given most secondary schools are funded at the ceiling the impact of any changes was minimal. 

The Forum noted that the next steps would be to consult with all schools on the best option for primary and secondary schools in Leicestershire as a whole.   

The consultation will present for primary schools;

·         The impact of an unchanged NFF

·         The impact of maintaining prior attainment funding at 2017/18 levels, retaining a lump sum of £150,000 and retaining the focus on IDACI funding through reallocation of the Ever6 funding within the NFF

·         The combined impact of the local deviations from the NFF

·         The approach to be taken to a ‘balancing adjustment’ to ensure the value of individual school budget does not exceed the Schools Block funding.

For secondary schools a single option of aligning as close as possible to the NFF.

The consultation would be launched on 17 November and close on 30 November.  This will allow Schools’ Forum to consider any response that they may wish to make on the views expressed by schools for the local authority to take into account in the recommendation on the 2018/19 school formula for consideration by Cabinet on 9 January 2018.

The consultation documentation will be available through the Leicestershire Traded Services website and an email will be sent to all headteachers and Schools Forum members to alert them to this.