To approve the provisional 2014-15 funding formula for submission to the DFE by 31st October. Paper to follow.
Minutes:
The Forum were asked to approve the provisional 2014-15 funding formula for submission to the DFE by 31 October 2013.
Members were advised that there would not be sufficient monies to fund schools at current levels. Officers summarised changes to funding that had already been agreed at previous meetings as well as the changes introduced by the DFE. Officers stated that there would still be a £1.1 million shortfall for 2014-15 and had carried out an exercise in drafting formula values based on October 2012 data and would update the Forum upon receipt of October 2013 data.
LA modelling included some further changes since the agreement of formula changes at previous meetings. These were as follows:
Reinstate the primary lump sum to £150k (from £100k as previously agreed). This would protect Havering’s smaller primary schools from further loss and also release some funding as less was needed to fund the Minimum Funding Guarantee;
Change the values in IDAC_2 and IDACI_3 for primary and secondary schools respectively to match those in the other sector;
Reduce the secondary school free school meal factor and transfer funding into KS3 and KS4 AWPU. This provided a more even spread across secondary schools of funding and brought the value closer to that used for primary schools.
To meet the shortfall in funding, modelling was presented with recommendations to reduce the values of formula factors by 1% and to apply a 0% gains cap. No school would therefore receive additional funding per pupil if calculated by the formula and all reductions would be held at -1.5% per pupil. The impact on schools of these changes would be as follows:
|
Sector |
Funding Increases |
Funding Decreases |
Capped at 0% |
Protected |
Reduction within -1.5% |
|
Infant |
0 |
5 |
7 |
2 |
3 |
|
Junior |
0 |
4 |
8 |
1 |
3 |
|
Primary |
0 |
26 |
9 |
14 |
12 |
|
Secondary |
0 |
11 |
7 |
8 |
3 |
|
Total |
0 |
46 |
31 |
25 |
21 |
In capping schools at 0% and reducing all funding factors by 1% would force some schools into MFG. Schools already protected would not lose more than 1.5%. Officers advised that the formula did not work well for smaller schools. It was noted that the DFE would not allow a negative cap.
There were large cash differences between schools in the secondary sector and there were concerns about the size of loss. A transfer in funding from the free school meals factor to KS3 and KS4 was agreed to spread the funding between schools more evenly.
The Chairman remarked that officers had carried out a lot of work and at the present time, could not see any other option but stated that the loss should not be any more that 1.5%.
Officers advised that at this stage the proposals were based on draft data and draft values but they had tried to “set the scene” with minimum turbulence. Once the data had been received, values could be applied and any additional funding could be added back.
Forum members were advised that in 2015-16 the National Funding Formula will be applied and the local authority will receive the same amount per pupil. Officers warned that there could be a long transitional period and were awaiting details to be released by the DFE.
The Chairman thanked officers for exploring all avenues and for an informative presentation.