Agenda item

To consider the budget for 2018/19. 

 

The attached update reports provide details on the overall funding settlement on each of the funding blocks, the decisions will be made after consideration of all of the update papers. 

 

a.    Schools Funding Settlement 2018-19

b.    Schools Block and funding formula

c.    Pupil Growth Fund

d.    Central Schools Services Block

e.    High Needs Block

f.      Early Years Block

g.    Schools Budget Decisions 2018-19.

 

a.          Schools Funding Settlement 2018/19

 

Liz Williams referred to the budget setting report for 2018/19 that was circulated with the Agenda and reported to the Forum that the DfE had issued the revenue funding settlement for schools on 20 December 2017. The provisional Dedicated Schools Grant (DSG) allocation for Wiltshire Council was £342.498m which was an increase of £11.693m from 2017/18.  The table on page 25 of the Agenda showed the split of funding was now between four blocks and not 3 as previously - (Schools block, Central Schools Services block, High Needs block and Early Years block).

 

Liz explained about each of the blocks and highlighted that the Central Schools Services Block (CSSB) was new and had been calculated according to the new National Funding Formula (NFF) in which October 2017 pupil census numbers had been multiplied by a unit value of £30.96 and the funding for agreed historic agreements had then been added to this total.

 

Liz reported that the funding regulations did still allow for limited amounts of funding to be moved within the DSG blocks and as previously reported the Local Authority have the flexibility to move up to 0.5% from the Schools block to the High Needs block with the agreement of Schools Forum.

 

The Authority was required to submit their proposed delegated budget for schools in their areas to the Education and Skills Funding Agency (ESFA) by 19 January 2018.  The ESFA would then need to confirm the formula is compliant with the funding regulations.  Once confirmed, the LA will then confirm and distribute the budget information for all maintained schools by the end of February 2018.  The ESFA would notify all academies of their budget information also by the end of February 2018.

 

Resolved:

 

That Schools Forum note the report.

 

 

b.         Schools Block and Funding Formula

 

Grant Davis reported that it had been previously agreed by Schools Forum that Wiltshire will move as close to the NFF as possible and Cabinet had approved the funding formula for 2018/19.  Grant informed that modelling work was underway to calculate individual school budgets based on the agreed formula.  The total shortfall between the NFF at published rates and funding received in the settlement was over £1.6m.  The reason for the variance was an increase in business rates and that a number of growing schools were being funding on estimated numbers than were counted in the October 2017 census.  200 additional pupils were being funded across 5 schools.

 

Grant reported that it had been previously agreed that a shortfall would be funded through a reduction in FSM6 rates and he was able to confirm that the rates would be lower than the EFA’s NFF rates and would be £410.40 for primary’s and £596.61 for secondary’s. This was 76% of the proposed NFF rate.  All other funding would remain at 100% of the NFF rates.

 

At the December 2017 Schools Forum meeting it had been agreed that a number of services were to be de-delegated.  It had been assumed that there would be no movement of funding between DSG blocks.

 

Grant circulated a sheet which showed pupil movements/per pupil funding rates/pupil led factors/MFG impact and the total quantum to those present at the meeting (attached as Appendix 1 to the Minutes) and went through the figures.

 

Resolved:

 

That Schools Forum note the report and make the required decisions to the schools delegated budget for 2018/19 later in the meeting when all information had been received.

 

 

c.          Pupil Growth Fund 2018/19

 

Grant reported that it was proposed that the budget for the growth fund be retained at a maximum of £1m for 2018/19 and that it was anticipated that the growth fund requirement for 2018/19 would be managed within that budget.

 

The Local Authority continued to lobby both the ESFA and the MOD to support the schools affected by the MOD’s Army re-basing programme.  The pressures of more children coming into Wiltshire’s schools had been highlighted at Officer level and Political support had been offered to ensure that our schools were not dis-advantaged because of the re-basing programme.  The pressures had occurred as some of the families were arriving to settle in the area earlier than planned.  It was anticipated that 1000 more pupils would come into Wiltshire during the Summer of 2019 which would require additional revenue funding of between £3 to £4m.

 

Grant reported that New School Allowance had remained unchanged since 2013/14 which had until 2017/18 been set at £85k for primary schools.  Under the proposals for the new NFF the lump sum would move to £110k.  Schools Forum would be asked to decide if they would wish to retain the funding at £85k or if they would wish to mirror the lump sum in funding formula at £110k.  If agreed this rise would be funded from the growth fund. 

 

It was highlighted that as the decisions needed for this section of the report did not affect or impact on other budgets that the Forum could decide on these aspects now and not at the end as with the other sub reports.

 

Resolved:

 

That Schools Forum

 

1.          Approve the criteria for allocating pupil Growth Fund in 2018-19.

 

2.          Confirm that the value to be used as the “flat rate” for new school funding in 2018/19 should mirror the lump sum in the funding formula at £110k.

 

3.          Agree that the budget for the Growth Fund is retained at a maximum of £1m for 2018/19.

 

 

d.         Central Schools Services Block

 

Liz Williams reported that this was a new funding block and details of what services were covered in the CSSB were shown in Appendix 1 starting at page 47 of the Agenda.  Liz went through Appendix 2 (page 53) which detailed the approvals that were required by Schools Forum under the CSSB funding block – she advised that the proposals would need to be agreed on a line by line basis.

 

Liz reported that since the report had been written that £0.159 million of unallocated funding had been identified and that this could be allocated to other funding blocks if agreed.

 

The Forum discussed the historic commitments as agreed for 2017/18 – particularly the funding for LAC Personal Education Plans (PEPs) and the funding of a Child Protection Officer in the Schools Advisory Team.  A suggestion to reduce the funding for LAC PEPS was discussed at length by the Forum (in order for some funding to be transferred to the High Needs block).  The importance of the PEPs was agreed and it was clarified that as Pupil Premium Plus payments are now received by the Virtual School some of this could be used for PEPs.  As this funding commitment was agreed over 10 years ago, the Forum agreed that now was an opportune time to reduce this commitment in part – possibly £0.100 million and that it be used elsewhere. 

 

It was agreed by all Forum members of the importance of retaining the Child Protection Officer in the Schools Advisory Team as this was a valued role.

 

Resolved:

 

That Schools Forum note the report and make the required decisions to the schools delegated budget for 2018/19 later in the meeting when all information had been received.

 

 

e.          High Needs Block

 

Liz Williams referred to the High Needs block update report that had been circulated with the Agenda and highlighted the projected demand on the High Needs block which showed a shortfall.  The estimate was based on a number of assumptions as detailed in the report and that there would be no transfer of funding between blocks, but as previously reported movements could be made if Schools Forum were wishing to agree this.

 

Liz highlighted the potential options of ways to address the shortfall. 

 

Resolved:

 

That Schools Forum note the report and make the required decisions to the schools delegated budget for 2018/19 later in the meeting when all information had been received.

 

 

f)      Early Years Block

 

Liz Williams reported that the provisional allocation for early years block settlement for 2018/19 was £27.047m and that Schools Forum must be consulted on changes to local early years funding formulas, although the final decision rests with the local authority.  It was estimated that the % pass through to settings would be 98% which is compliant with the regulations in relation to the delivery of the entitlements for 3 and 4 year olds.

 

Resolved:

 

That Schools Forum note the report and make the required decisions to the schools delegated budget for 2018/19 later in the meeting when all information had been received.

 

The Chairman agreed a brief adjournment at 3.25pm to allow Forum members to take a comfort break and to discuss budget proposals with colleagues prior the meeting reconvening.

 

The meeting reconvened at 3.40pm.

 

g)     Schools Budget Decisions 2018/19

 

Liz Williams circulated a revised A3 decision matrix at the meeting to make it clear which funding block was being discussed and what decision was required by the Forum.  The completed decision matrix is attached as Appendix 2 to these minutes.  For the minutes, the decisions are also recorded below.

 

Central Schools Services Block Proposals

 

1.          To approve the line by line summary, (as at page 53 of the Agenda papers) - summarised in the proposed budget summary.

2.          To agree eligible expenditure of historic commitments as per the table at page 46 of the Agenda. 

3.          To agree the proposed budget for central copyright licences set at £0.359m.

4.          To agree that there is no top slice proposed for services formerly funded from general duties element of ESG.

 

Resolved:

 

	Section B	Budget 2017-18	Proposed Budget 2018-19	Notes	Decision by Schools Forum - 18.1.18
		£	£
Schools forum approval is required on a line-by-line basis	funding to enable all schools to meet the infant class size requirement (growth fund)	100,000	100,000	in 2017-18 schools forum agreed total funding of £1m for the growth fund.  Split £100,000 for infant class size requirement and £900,000 for basic need growth.  Proposal for 2018-19 is to keep the same split	Agreed
	back-pay for equal pay claims	-	-	no budgeted spend	Agreed
	remission of boarding fees at maintained schools and academies	-	-	No budgeted spend - any spend would be for LAC, funded from LAC Education Service and Pupil Premium	Agreed
	places in independent schools for non-SEN pupils	-	-		Agreed
	services previously funded by the retained rate of the ESG	1,005,398	1,005,398	Education Welfare, Statutory & Regulatory Duties, Asset Management	Agreed
	admissions	411,000	415,000	Cost of Admissions team with corporate support overheads	No increase agreed - budget to remain at 411,000
	servicing of schools forum	3,000	3,000	cost of supporting meetings	Agreed
		1,519,398	1,523,398

 

Resolved:

 

1.     The expenditure for the Central Schools Services block is as agreed as indicated the table above.  Note – the inflation increase to the Admissions Team was not approved and remained at £411,000.

 

2.          Central spend on historic commitments agreed as follows:

i)       Funding for LAC Personal Education Plans be reduced by £0.100 million for 2018/19;

ii)      Funding for Child Protection Office in Schools Advisory Team to remain at £0.041 million; and

iii)    Prudential Borrowing to remain at £0.300 million.

 

3.          Schools Forum note the LA decision to set budget at £0.359m for central copyright licences for 2018/19.

 

4.          Schools Forum agree that there be no top slice for services formerly funded from the general duties element of ESG.

 

 

Schools Block and Funding Formula - Delegated Budget

 

1.          To agree that any reduction required for affordability is applied to Free School Meal Ever 6 formula factor.

2.          To note that the Minimum Funding Guarantee has been set by Cabinet at a rate of +0.5%.

3.          To note that the Growth Fund be set at £1m for 2018/19, split as £0.1m for infant class size funding and £0.9m for basic need.

4.          To note that the criteria for the growth fund remains unchanged from 2017/18.

5.          To agree the rate at which the “flat rate” in the growth fund should be funded.

6.          To agree that Wiltshire does not implement a falling rolls fund for 2018/19.

 

Resolved:

 

1.          Schools Forum agreed that any reduction required for affordability is to be taken from the Free School Meal Ever 6 formula factor.

 

2.          Schools Forum note the decision already made by Cabinet to set the Minimum Funding Guarantee at +0.5%.

 

3.          Schools Forum agreed that the growth fund be set at £1m, with the split being £0.1m for infant class size and £0.9m basic need. 

 

4.          Schools Forum agreed that the criteria for the growth fund remains unchanged.

 

5.          Schools Forum agreed that the “flat rate” within new school’s allowance to change to £0.110 million to match the lump sum within the funding formula.

 

6.          Schools Forum agreed that Wiltshire will not implement a falling rolls fund in 2018/19.

 

 

High Needs Block Proposals

 

1.          That no formula is put in place for 2017/18 for funding for exceptional numbers of statements due to affordability.

2.          That no change is proposed to top up values for NPA’s, ELP, resource bases and special schools and that they remain the same as 2017/18 values.

3.          That funding levels for alternative provision remain at 2017/18 levels.

4.          That proposals be developed/identified to meet the shortfall in the High Needs block – possibly from movement from other blocks.

 

Resolved:

 

1.          Schools Forum agreed that no formula for funding exceptional numbers of statements to be put in place for 2018/19.

 

2.          Schools Forum agreed that top up values for NPA’s, ELP, Resource Bases and Special Schools are to remain unchanged from the 2017/18 values.

 

3.          Schools Forum agreed that funding levels for alternative provision to remain unchanged from the 2017/18 levels.

 

4.          Schools Forum identified savings that are detailed below and agreed that these are applied to meet the shortfall in the high needs block.

 

Savings agreed for High Needs Block
Agreed Mitigation	£m
Utilise unallocated Central Schools Block Funding	0.163
Delete budget for Primary/Secondary Transitional Support	0.130
Do not fund development of further SEMH Centres of Excellence (but first centre at Castle Mead to continue as planned)	0.360
Reduce budget for Personal Education Plans for Looked After Children by amount of Pupil Premium Grant increase	0.100
	0.753m

 

Early Years Block Proposals

 

1.          To propose the formula as per Early Years block report with supplements for rurality and deprivation. Proposed Basic Hourly rate £4.16.

2.          To propose that the Inclusion Support Fund to be set at £467,300, to be met as follows - £357,300 from High Needs block and £110,000 from Early Years block.

3.          To propose that 98% of funding be passed through to Early Years providers. 

4.          To propose an hourly rate of £5.32 for free entitlement for 2 year olds.

 

Resolved:

 

1.          Schools Forum agreed that the Wiltshire Early Years Single Funding Formula be set at £4.16 per hour.  Rurality to be set at £0.52 per hour and depravation set at £0.40 per hour.

 

2.          Schools Forum agreed that the Inclusion Support Fund of £467,300 be funded from £357,300 from High Needs block and £110,000 from Early years block.

 

3.          Schools Forum agreed that 98% of 3 & 4-year-old funding would be passed through to providers.

 

4.          Schools Forum agreed that the funding rate for two year olds would be set at £5.32 per hour.