I know that the next time the school start telling you about their financial problems you should tell them to see an accountant and stop unprofessionally bothering you, a parent who has quite enough on her plate already.
In what world could a parent of a struggling child to say to a HT 'oh, don't worry about my child's educational needs or his life chances, - keep the money for your sports coach/vegetable garden/salary top up/new IWB/marketing leaflets.......
The funding arrangements can make things a bit difficult for schools, but technically all that has happened is that Local Authorities have given all of their SEN money directly to the schools to manage and retain very little themselves. So the school already has the money.
However, it isn't ringfenced and the school can spend it on what they like. If a child has a statement though, their flexibility to spend it on what they like is removed as they have to fulfil the provision in the statement. If the cost of implementing the statement puts them in fincancial trouble, the LA can and will help them out as it is ultimately the LA and not the school that is responsible for fulfilling the statement.
This information incidently, is not for you to use to argue with. A simple statement 'Gosh, does the PTA or LA know that you are in such dire straights? Perhaps you need to tell them. Please don't raise it with me again as I am ill qualified to advise.' should do you.
As will the IPSEA website.