Paragraph 2

(1)

Subject to paragraphs 6, 7 and 8, the Secretary of State shall calculate the protected level of funding for the financial year beginning on 1st April 1998 for each school to which regulation 18 applies according to the formula

\frac{a - b}{c} \times d,

where

“a”, “b”, “c” and “d” have the meanings ascribed to them by this paragraph and paragraphs 3, 4 and 5 respectively.

(2)

For the purposes of the formula in sub-paragraph (1) above and subject to sub-paragraph (4) below, “a”, in the case of a school whose maintenance grant was determined in the financial year beginning on 1st April 1998 in accordance with the 1998 Regulations, other than in accordance with regulation 15, is the aggregate of the following amounts, in each case as last determined or redetermined by the Funding Agency for Schools in respect of the school before 15th December 1998—

(a)

the amount (Direct AMG) determined in accordance with regulation 6, 7, or 19;

(b)

in the case of a school whose Direct AMG was determined in accordance with regulation 12, the amount which appeared to the Funding Agency for Schools to be equal or approximate to the amount of the school’s budget share for that financial year;

(c)

the amount (Central AMG) determined in accordance with regulation 8;

(d)

the amount of transitional funding determined in accordance with regulation 9;

(e)

the amount determined in accordance with regulation 11 (or that regulation as it has effect in accordance with regulation 20(1)) or regulation 20(2) (school meals);

(f)

the amount determined in accordance with regulation 22 (contingencies) in respect of contingencies arising other than from increases in pupil numbers at the school during the course of that financial year;

(g)

the amount determined in accordance with regulation 23 (nursery education);

(h)

the amount added or deducted under regulation 32 (schools situated in the area of the authority which is not the area of the former maintaining authority);

(i)

the amount added under regulation 33 (capital expenditure from the revenue account).

(3)

For the purposes of the formula in sub-paragraph (1) above and subject to sub-paragraph (4) below, “a” in the case of a school whose maintenance grant was determined in the financial year beginning on 1st April 1998 in accordance with regulation 15, is the aggregate of the following amounts, in each case as last determined or redetermined by the Funding Agency for Schools in respect of the school before 15th December 1998—

(a)

the amount determined under regulation 15;

(b)

the amount added under regulation 33 (capital expenditure from the revenue account).

(4)

For the purpose of determining the amounts referred to in sub-paragraphs (2) and (3) above no account shall be taken of—

(a)

funding for pupils with statements of special educational needs of a kind which the local education authority could have determined, by the application of the allocation formula in their scheme in relation to a comparable maintained school covered by the scheme, as part of such a school’s budget share for all or part of the financial year beginning on 1st April 1998, in so far as such funding or a corresponding percentage of such funding could not also have been determined in accordance with the authority’s formula for the equivalent period in the financial year beginning on 1st April 1999;

(b)

regulation 10 and 17(b) (Section 11 funding);

(c)

regulation 13 (apportionment of Central AMG);

(d)

regulation 14 (apportionment of school meals funding);

(e)

regulations 18 and 21 (apportionment of maintenance grant);

(f)

regulation 22 (contingencies) in respect of contingencies arising from increases in pupil numbers at the school during the course of the financial year;

(g)

regulations 17(a), 24, 25 and 26 (additions or deductions representing unspent sums from previous budget shares, budget deficits from previous years and deductions from current year’s budget share);

(h)

regulations 27 and 28 (deductions representing excessive surpluses in previous years and excessive severance payments);

(i)

regulation 31 (schools with wide age ranges).

(5)

In the case of a school to which regulation 4(2) of the 1998 Regulations applied (precise calculation of maintenance grant impracticable etc.) the Secretary of State shall determine as the amount of “a” such amount as appears to him to be fair and reasonable having regard to the amount of maintenance grant which the Funding Agency for Schools determined in respect of the school in accordance with the 1998 Regulations and the provisions of sub-paragraphs (2) and (4) above.