Agenda item

Liz Williams outlined her report which concerned several elements which needed to be considered, before officers can finalise the schools revenue budget in readiness for approval at Cabinet and Full Council.

Background & Risks

Schools Funding Settlement – The Department for Education (DfE) financial settlement is for one year only. No details have been provided for 2012/13 financial year. This settlement contains significant changes from previous years, including the mainstreaming of a number of former standards funds in to the Dedicated Schools Grant, and the addition of a Pupil premium.

Estimate of Dedicated Schools Grant – A confirmation of the final level of grant will not be received until June 2011 and the final level of grant could be higher or lower than the estimate.

Use of one-off funding in 2011/12 – Currently it is estimated that there will be an underspend of £2.369 million in 2010/11 and this can be utilised against priorities, however there is some risk in this projection because of uncertainty around take up of the extended free entitlement for 3 & 4 year olds.

Academies – The estimate of DSG includes those academies known in January to be converting to academy status by April 2011.

Dedicated Schools Grant – Estimate for 2011-12

Officers recapped the elements of the estimated grant, which was based on a 0% inflationary rise. A minimum funding guarantee of -1.5% will be applied to individual school’s budgets. Numbers of pupils used in the estimate have been based on the October pupil count and adjusted for trends and other known changes.

The budget requirement [see Appendix 1 to the Agenda] was considered by the forum along with the potential cost pressures so far identified [Appendix 2 to the agenda]. A shortfall was identified of £1.246 million against the estimated level of DSG if the identified cost pressures are to be funded.  This shortfall would increase to £1.536 million if Schools Forum were also to invest in the Young Persons Support Service following the review of the service.

This shortfall can be met from taking part of the 2010/11 rollover however this would mean investing up to £1.536 million of one-off funding in to the 2011/12 budget. 

Officers and members of Schools Forum agreed that the risk associated with investing one off funding in 2011/12 must be mitigated by the development of savings across central DSG funded services of at least £1.6 million, or 5%, in time for 2012/13. The Chairman explained that work had already begun in this respect, and papers with proposals/updates would likely return to the Forum in the Autumn.

Trevor Daniels explained a secondary issue was dealing with changes to, and the budget definition of, services which are not provided directly through schools – an example raised by forum members was Broadband contracts and provision, where the leeway for action by individual schools and the regulations would need assessing.

Following discussion on the merits of providing the identified funding for the YPSS, Liz Williams reminded the forum that a new funding model was under development, and this would include changes to AWPU and the education of children & young people with severe medical needs.

Allocation of Former Standards Funds

The proposals here reflected the sequence of discussions at previous School Forum meetings and at the meetings of the School Funding Working Group. Figures were shown [Appendix 3 to the Agenda] which show the impact on each school, and in total, of different methods of allocation, on an adjusted budget baseline. This took out the distortion caused by the withdrawal of one-off grants and other exceptions.

The Chairman reminded the Committee that re-allocation of grants had kept funds key-stage and phase specific, in keeping with the wishes of the Forum.

Resolved:

Budget Setting

i)     The Young Person’s Support Service (YPSS) receives funds of £290,000, indicated as necessary in the recent review of the service.

ii)     A new funding model for the YPSS is to be developed and presented to the Forum when ready. 

iii)   The final budget requirement is thus £274.653 million

iv)  That one-off funding from the 2010/11 rollover be used as necessary to address the identified cost pressures

v)    That the risk associated with rolling over fund be mitigated through the development of savings proposals within central DSG budgets of at least £1.6 million for 2012/13.  Use of one off funding in this way will allow time for central services to be restructured in line with the Departmental restructure, and for the continuation of the work started with schools to transform and develop traded services.

Allocation of Former Standards Funds

vi)  Investment priorities were confirmed as those identified by previous Schools Forum meetings – see report and appendix 2 to the agenda.

vii)A statement of principles agreed by the Schools Forum for the allocation of former Standards funds be finalised and circulated to schools [see Attachment 2 to the Minutes].

viii)                The allocation of the Former Standards Funds through the funding formula to be set out as follows [Appendix 1 to the minutes], with inclusion of a Flat Rate of £20,000 per primary school, £50,000 per secondary school and £20,000 per special school.