It comes after the Local Government Association claimed converting all schools to academy status will cost council taxpayers £320 million.
The move would also see local authorities lose £80 million a year in business rates income, according to the LGA.
It also claimed converting all schools into academies would have a negative impact on educational standards.
Academies are schools taken out of local authority control. They're state-funded but have private sponsors, often charities, religious institutions or businesses.
Supporters say academisation gives schools greater control over money and removes red tape, while critics say they take away accountability and are a form of creeping privatisation.
A Department for Education spokeswoman said: "We have the funding to ensure more schools can take advantage of the opportunities presented by becoming an academy, with over £600m available in this Parliament to support schools to convert and build capacity in the system.
"We recognise local authorities and church dioceses will also face costs and funding will also be provided to them.
"We are considering options for this and will make further information available in due course."
