Schools in Somerset have not had money held back from them by the Local Education Authority (LEA), says the county council.
It "completely refutes" the Department for Education and Skills (DfES) assertion that the LEA is holding back �9.45m.
Portfolio holder with responsibility for lifelong learning, Cllr Pauline Clarke, said: "This amount is unallocated funding that will be released to schools throughout the year."
The council says nearly �1.7m of the amount has already been allocated, and that �4.7m will be given to schools when they submit action plans or agree arrangements.
'Missing millions'
The remaining �3m will be handed over as soon as key data is available - such as the numbers of newly qualified teachers or advanced skills teachers, it adds.
Cllr Clarke added: "Schools know about these funds and have been advised to include their share in their budget preparation.
"We have actually increased spending on education by �25.57m this year, which is more than the government's estimate.
"The real problem is that Somerset remains among the bottom 30 worst funded LEAs by the government in England."
The government has argued that funding - "the missing millions" - held by LEAs has still to be passed on to school, and wants them to justify their funding allocations.