Agenda item

·         Provision of growth funds in Schools Block

·         New Cash Floor factor

·         Permission to transfer up to 0.5% out of the Schools Block

·         Min Funding Guarantee to set

·         Maintained Schools de-delegation

·         Budget arrangements within the Central Schools Services Block

In comparison to the changes to schools funding that had to be put in place for 2018-19, there are relatively few further changes that need to be considered for funding year 2019-20. Listed below are the main issues where decisions need to be reached alongside the Forum.

• Provision of Growth Funds within the Schools Block

2019-20 will see a new formularised approach to growth funding within the DSG Schools Block. To replace the historic level of annual growth funding hitherto provided, the ESFA will compare October 2018 pupil census data with that for October 2017 to map the positive differences between the years. The 2019-20 Schools Block will include £1,370 per primary pupil growth and £2,050 per secondary pupil growth. In addition, a sum of £65,000 will also be included for each brand new school appearing on the October 2018 census.

It is anticipated that the new methodology will provide an increase in growth funding for Kirklees. From the sum provided we will still need to set aside money to operate a Pupil Growth Fund and a Falling Rolls Fund and also to fund year group increases for a small number of schools growing primary provision by one year group per annum. Any new growth funding provided above the level required to satisfy these commitments would be really helpful to the task of supporting schools undergoing some form of restructure given that reorganisation monies are dwindling rapidly. A proposal will be brought to Forum.

• The new Cash Floor factor

2019-20 will see the introduction of a new formula factor, the Funding Floor. The 2019-20 Schools Block allocation will include a second 0.5% rise in funding per pupil. If this is passed on to schools there will be a need to ensure that every mainstream school gets at least a 1% increase on their 2017-18 per pupil funding baseline. This could not be done in the context of a minimum funding guarantee mechanism which continues to be capped at plus 0.5%, so a new fixed funding floor factor set at plus 1% is to be introduced to enable the minimum funding increase requirement to be delivered. We will need to bring this factor into play next year (unless the permission described below is taken up).

• Permission to transfer up to 0.5% out of the Schools Block

(As in 2018-19) local authorities are allowed to make proposals to the Schools Forum (and through wider consultation with all schools) to transfer up to 0.5% of their total 2019-20 Schools Block funding allocation to other areas of the Dedicated Schools Grant, particularly to help with pressures within the High Needs Block. For Kirklees the 0.5% equates to the totality of any new money provided for schools within the Schools Block. This was a key factor in the decision not to propose a movement of funds for 2018-19. A formal decision now needs to be made by the Council on the approach to be taken for 2019-20.

• Minimum Funding Guarantee

Depending upon the decision reached in respect of the potential transfer of funds out of the Schools Block, the Minimum Funding Guarantee for 2019-20 will either be set at plus 0.5% (in the event of a transfer out of 0.5% of the Schools Block – the fixed funding floor factor could not be used in 2019-20) or it will need to act as a balancing mechanism to distribute any unallocated funds that might be present after the 1% funding floor factor has done its job (ie if no funds are transferred out of the Schools Block).

·       Maintained Schools De-delegation

Majority decisions are needed from each of the maintained primary and secondary school sectors about de-delegation for financial year 2019-20. As a reminder, today’s agenda papers included a summary of the de-delegation arrangements in place for 2018-19. Local authority proposals will be brought to the next meeting.

·       Budget arrangements within the Central Schools Services Block

Local authority proposals for expenditure to be supported from the 2019-20 Central Schools Services Block allocation will also be brought to the next meeting. As a reminder, today’s agenda papers included a summary of the 2018-19 arrangements. The transitional arrangements governing the CSSB allocation are expected to deliver a modest reduction in the level of funding for 2019-20 so, at a minimum, there will need to be adjustments made to some of the budgets within the CSSB.