This increase was passed to local authorities through a new "Education Formula Funding Grant".
Those block grants replaced the old federal matching funding formula with fixed finite funding that left the states responsible for 100% of increased spending, but gaining 100% from any savings.
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For that reason, my budget will propose a new formula for funding schools that gives extra support to those that are growing.
It said the government's new funding formula would make it difficult to support some rural schools.
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But pessimists worry that Mr Brown's funding formula encourages the old and wrong approach.
From September a new funding formula will fund all A-level subjects at the same rate.
"PAT favours a national funding formula to cut out basic inequalities between local education authorities, " she said.
In Virginia, fixing the funding formula to level the playing field for all students would be a good start.
It also said it believes the new funding formula still gives local authorities the power to protect small schools.
She said officials from the UK and devolved governments had agreed to work together to seek an alternative funding formula.
Education Secretary Charles Clarke has admitted some schools face problems as a result of the introduction of the local government funding formula.
The call for a fair funding formula to prevent them losing out to school sixth forms has been echoing across the green benches.
The changes apply to England only, but will have knock-on effects in Scotland, Wales and Northern Ireland because of the funding formula used.
The panel has recommended a simpler funding formula and financial incentives so that smaller schools are better off if they join with schools nearby.
The first minister said that it was his priority to ensure that Silk was implemented "in full" including changing the funding formula for Wales.
Scots ministers said a new formula for allocating funding was based on population density, meaning areas like the Highlands would be particularly badly hit.
Under this so-called "fair funding formula", individual schools get individual allocations.
Critics have long argued the funding formula - which sets the size of the assembly's budget based on Wales' population - does not meet Wales' needs.
Plaid Cymru broadcasting spokesperson Bethan Jenkins said the announcement was in part good news, but the funding formula was only part of a package of measures.
In fact, it's a lot fairer than the funding formula in a traditional defined benefit plan, argues Urban Institute retirement and tax policy expert Eugene Steuerle .
But Plaid AM Dai Lloyd said while a review of the funding formula from Westminster was needed, he accused Liberal Democrats and Conservatives of "grandstanding politics" over public spending.
Moreover, the Senate bill has a lifespan of just two years (whereas the House bill has five), in a deliberate effort to skirt the growing cracks in the funding formula.
In the last week of February, however, changes were introduced to the bill that struck out all of the well-balanced language in the bill designed to fix the faulty funding formula.
John Wilson, assistant director of children and young people services at East Riding of Yorkshire Council, claimed that the government's "national funding formula", which was introduced this month, was the reason behind the closures.
Entering 2012, the state of Virginia was coping with the effects of a faulty funding formula, which did not provide equity for all students statewide, that the existence of full-time virtual schools had exposed.
Peter Hain, the shadow Welsh Secretary, was "suspicious ... at a time when their savage cuts are hitting Wales so hard, we are sceptical about the impact any tinkering in the funding formula will have".
The UK government had previously said that it would look at the funding formula if the assembly could deliver a successful referendum result - a promise the first minister would be urging the Conservative-Liberal Democrat coalition to keep.
The Labour MP for York Central, Hugh Bayley, and the Conservative MP for York Outer, Julian Sturdy said they would press for a Parliamentary debate on how they claim the county "loses out" due to the national funding formula.
Those 1996 reforms changed the federal financing for the old, New Deal era, Aid to Families with Dependent Children program (AFDC) from a matching federal funding formula, which paid a state more the more it spent on the program.
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