Agenda item

i)                    School Funding 2011/12 and Beyond

ii)                  A New Early Intervention Grant and CYPS Revenue Budget Plans 2011/12

iii)                Forecast of Outturn 2010/11 – Quarter 3

Report of Head of Finance, Children and Young People’s Services

Consideration was given to the report of the Head of Finance, Children and Young People’s Services which provided details of School Funding 2011/12 and Beyond, New Early Intervention Grant and CYPS Revenue Budget Plans 2011/12 and Forecast of Outturn 2010/11 based on information at the end of the third quarter of the financial year (for copy, see file of Minutes).

Mr P Barclay, Head of Finance, Children and Young People’s Services gave a presentation in relation to School Funding and CYPS Revenue Budget Plans including the Early Intervention Grant for the 2011/12 financial year and beyond.

Dedicated Schools Grant (DSG) would be distributed to Local Authorities using the current methodology for 2011/12.  There was to be a major consultation in the spring on the move to a National Funding Formula.  The DSG per pupil was to remain ‘cash flat’ until 2014/15.  Efficiencies in procurement and back office were set as a Government target for schools to save £1.1 billion over 4 years.  It was noted that the Council had a very effective procurement team in schools with some excellent contracts in place.

The Minimum Funding Guarantee per Pupil was set at a minus figure of 1.5% and sixth forms would have a phased reduction in resource down to the level in Colleges, which equated to around £280 per student.

The Pupil Premium was to be £430 per pupil and was linked to free school meals, equating to £6m for County Durham from a pool of £625m nationally.  Electronic free school meals data was now available for ease of administration and schools would be informed who was eligible.

Grants were to be mainstreamed into DSG and every child would attract over £5000.  There was an estimated fall in pupils of approximately 330 between January 2010 and 2011 which would cost £1.6m, of which £0.25m related to extra grants.  The County Council Schools Forum views and a subsequent consultation paper was now on the Extranet.  The key Forum message was to consolidate where possible with minimal turbulence.

There was too much budget variation if a formula was used for existing grant supporting Excellence Clusters, Excellence Countywide and the Deprivation Grant.  Specialist schools funding would be maintained at similar levels as well as Advanced Skills Teachers funding.  Ethnic minority achievement was to be protected and managed by the Local Authority.  Extended schools would move to school allocations but they would still be able to pool resources to share employee costs.  A partial delegation was proposed for primary and secondary targeted support.

The Harnessing Technology Grant that was used for ICT and Broadband in schools was to cease.  75% of the grant went to schools and 25% to Corporate IT.  There would be a reduction in the School Devolved Formula Capital Grant of approximately 80%.

A new DfE grant for Condition and Basic Need was £13.6m.  In 2011/12, schemes were being prioritised and primary schools where there were not enough places for local demand would be funded (Basic Need).  Seaham and Spennymoor schools which had significant condition and curriculum delivery difficulties that were not part of the Building Schools for the Future programme would also be high priorities.

Financial Management Standard in Schools ended in November and a simpler replacementwould be developed and implemented by September 2011.  The requirement for school Balances Clawback was to be removed from 2011/12.  The DfE were suggesting that Business Managers should be a priority for all schools.

The Education Secretary Michael Grove’s preferred option for reform was to switch to a national funding formula.  Funding should be transparent, logical, equitable and not linked to local authority spend.  More Academies were being encourages nationally.  Shotton Hall became an Academy on 1 February, Stanley and Consett schools would become academies from September 2011, and other secondary schools may follow.

The Young Peoples Learning Agency was to be replaced by a new Education Funding Agency which funded Academies, Free Schools and 16-19 provision (schools and colleges).  The LACSEG Academy top up via a DfE estimate for next 2 years was 2011/12 £1.4m and 2012/13 £2.3m this impacted directly on County Council funding. 

CYPS revenue budget was to reduce by £18.3m over 4 years.  High profile revenue budget reductions were

• Support services and management £3.2m over 4 years
• Music and outdoor education self financing
• Integrated teams – reduced management costs
• Reduced EWS and Psychological Services
• Supplies, premises, travel, training costs
• End of Awards Team
• Finance support – Children’s Fund and payments process
• School improvement
• Shared use in schools
• Home to School and College transport

Area Based Grant had ceased with a CYPS base reduction of £13.8m.  A new Early Intervention Grant would not be ring fenced, £23.7m would be received but this represented a £6.76m cut compared to April 2010.

The budget available for CYPS had been reprioritised and there would be a significant paring back of activity, particularly in the infrastructure of Sure Start and the scale of Connexions Service. The 2011/12 Early Intervention Grant  would fund:

• Pre Reprimand Disposal; Teenage pregnancy;
• Youth Substance Misuse; Foundation Learning Courses  (not GCSE); Short Breaks for Disabled Children;
• Family Pathfinder Initiative; Mental Health;
• Training for Social Care Workforce;
• Advice to Parents on School Admissions;
• Education / Health Partnerships and Healthy Schools; Education of Looked After Children;
• “Get Out There” Website; Study Support;
• School Improvement, Curriculum Development and Intervention;
• Sure Start and Children’s Centres; 14 plus Student Support and Guidance.

Changes to reflect in budget preparation for 2011/12 included the cessation of ABG and other DfE grants, savings in the MTFP, budget growth for SaSS pressures, zero pay awards, pension contribution rises, carbon reduction contributions and corporate savings on essential car users/mileage rates.

Mr Mackie referred to historical funding of schools and queried to what extent the proposed national funding reform would have on how schools were currently funded.  The Head of Finance explained that funding could not be driven solely on the numbers of pupils in a school as some of the rural schools in County Durham had a small number of pupils.  Over the years a number of supporting grants had been given to Excellence Clusters (previously Education Action Zones), deprivation grants etc.  It remained to be seen how it could all be distributed evenly using a national formula.

RESOLVED that the information contained within the report and presentation, be noted.