Schools Forum MeetingThursday 1 February 2007 Agenda Item 6
Dedicated Schools Budget 2007-08
1.Introduction
The Forum received an indicative 2007-08 budget at its meeting of 1 February 2006.
This report compares the final 2006-07 budget with the indicative 2007-08 and an updated budget which reflects revised pupil number assumptions and those other issues highlighted in the mid-year report. A detailed analysis is set out at Annex A.
2.Overview
2.1The DfES issued updated Dedicated School Grants (DSG) information before Christmas. Their 2007-08 revised predictions suggest a reduction in grant of some £2.5m (0.3%) from £736.468m to £733.957m. This represents a reduction in pupil numbers of some 670.
2.2The Forum will recall that the final DSG for 2006-07 for Essex was some £3.6m below their DfES indicative allocation; nationally the final DSG was some £90m (or 0.34%) below a total DSG of £26.7 billion.
2.3The LA has undertaken a prudent review of pupil numbers and has based its updated 2007-08 estimate on a DSG of £732.656m (or 195,252 pupils). Of course, school budget allocations will be based on actual January 2007 census data.
3.Detailed Budget 2007-08
3.1Individual Schools Budget (ISB).
Overall, the 2007-08 ISB has increased by some £41m (or 6.3%). The budget reflects the inclusion of a further £7m of Pay Progression Grant. This accords with the views expressed at the Schools Forum meeting of16 January 2006. Taking the PPG adjustment into account, the ISB has increased by nearer 5.2%.
3.1.1The proposed budget reflects additional year on year resources which might be expressed as follows:
£,000
2006-07 Final ISB649,275
Adjusted for reduced pupil numbers
(199,562 (2006-07) – 197,780 (2007-08)
including post 16)643,477
Inflation at 3.7% _23,809
667,286
Add:
Additional PPG delegated 2007-08 6,916
KS3 Personalised Learning 5,454
Primary Personalised Learning 2,928
14+ Vocational Options __1,956
684,540
Additional resources to support school budgets __5,087
Total Individual Schools Budget 689,627
3.1.2As agreed at the Schools Forum meeting of 1 February 2006, the additional growth will be allocated 50:50 Key Stage Funding: Additional Educational Needs (AEN).
3.2School Standards Grant (SSG).
Nationally, SSG has increased year on year by some 26.4%. This is represented as:
School Standards Grant Nationally / 2006-07 / 2007-08Pre-Budget SSG / £1,012 m / £1,062 m
SSG personalisation / £220 m / £365 m
Extra SSG announced Dec 2006 / - / £130 m
Total SSG / £1,232m / £1.557m
2006-07 S52 Budget Shares would have reflected the initial Pre-Budget SSG; using this as a base, the total SSG will increase by some 53% year on year.
In Essex SSG and SSG (P) are likely to increase by some 50.8%. The difference with national rates may relate to the more pessimistic view taken of pupil numbers than those predicted by the DfES.
3.3School Development Grant and Standards Funds.
Agenda item 7 sets out the level of grants available in 2007-08 and the proposed centrally retained budgets. Overall, levels of grant are broadly in line year on year.
School development grant has increased by some 3.7%, but reflects the reduction in pupil numbers anticipated at 2.3 above.
3.4Threshold and Performance Pay.
In line with the views expressed by the Forum in January last year a further one third of the former Pay Progression Grant (£6.916m) has been delegated through Key Stage funding in 2007-08.
3.5School specific contingencies.
The Forum is required to approve any increase in contingency provision in accordance with government regulations.
The proposed provision for 2007-08 compared with 2006-07 is set out below:
2006-07 / 2007-08Pupil number trigger / £,000
1,378 / £000
1,423
Special Educational Needs / 2,418 / 2,498
Key Stage 1 Class Sizes / 2,020 / 2,099
Safeguarding/Excluded Pupils / - / 110
Newly Qualified Teachers / 1,102 / 1,138
English and an alternative language / 315 / 326
Targeted School Improvement / 450 / 465
Integrated Support Service / - / 650
Opening, Closing, Reorganising Schools – Brays Grove / 800
OCR - Other / 840 / 945
TOTAL / 8,523 / 10,454
The main reason for the increase relates to a provision of £800,000 under Opening Closing and Reorganising Schools to recognise the deficit reported to the Forum at its meeting of 17 October 2006with regard to BraysGroveSchool which is to close in 2008-09.
In addition, the budget provides for the ongoing issues regarding the Integrated Support Service, reported at Agenda Item 4.
3.6Fees for pupils at Independent Special Schools (£14.6m).
The Forum at its December meeting supported an ongoing increase of some £1.5m to the Independent Special Schools budget. In addition to an increase due to inflation, a sum of around £0.6m has been added to this budget from the Provision for pupils with SEN, with and without statements to reflect more appropriately, the costs of other Alternative Education Provision.
3.7Licences and Subscriptions.
The ongoing effects of the increase reported to the Forum at its 17 October meeting are reflected.
3.8Staff Costs – Supply Cover (not sickness) (£356,186)
The increase of some 14% reflects the impact of revised term dates around the Easter holidays with regard to union representatives attending annual conferences.
3.9Termination of Employment Costs.
The increase from £100,000 to £300,000 represents the likely impact of the closure of BraysGroveSchool. No costs will be met from this budget without a full report to the Forum.
3.10Non-Standards Fund Specific Grants.
The increase against this budget heading reflects the re-classification of some grants to Local Area Agreements (LAAs) – see Agenda Item 7.
4.0A comparison of the original Schools Budget 2007-08 as submitted to the DfES with the current draft.
4.1The major changes between the two 2007-08 budgets presented to the Forum relate, inevitably, to the assumptions around pupil numbers. As related at 2.1, the DfES have re-evaluated the numbers included in their revised 2007-08 DSG calculations, reducing their assessment by some £2.5 million. The LA’s prudent assessment has reduced its assumed DSG by £3.1 million (or 830 pupils).
4.2The Individual Schools Budget has decreased by some £5 million recognising:-
- An overall reduction in pupil numbers, resulting in
- The reduction in overall grant income (DSG and LSC) of some £2.5 million;
- An increase in contingencies of £1.9 million;
- An increase of some £1.5 million in Fees for pupils at independent special schools; and
- The effects of other in year changes already reported on elsewhere in this report.
5.0Minimum Funding Guarantee (MFG)
The Forum has Executive powers to vary the list of items excepted from MFG.
The only non-statutory deduction from MFG proposed relates to Opening, Closing and Re-Organising Schools, which was approved by the Forum as an exception in 2006-07. It affects 5 primary and 1 special school.
6.0Central Expenditure Limit (CEL)
6.1As set out in Agenda item 5 the Forum has Executive powers to agree a breach of the CEL.
6.2A comparison of the LAs School Budget against the CEL is set out at Annex B.
6.3Whilst the CEL is breached by some £7.9 million, it relates to the budget pressures supported by the Forum with regard to:
- Independent Special Schools;
- Contingencies; and
- The remaining 1/3 of Pay Progression Grant, which will be delegated in 2008-09.
What is the CEL?
The LA is not allowed to increase the amount of centrally retained Dedicated Schools Grant at a higher rate that the individual school budget increases without the approval of the Schools Forum.
7.0Risks
7.1The budget reflects the latest assessment of pupil numbers which will vary as January census data is finalised.
7.2The following budgets, in particular are demand led:
a)Fees to independent special schools (£14.6m);
b)Inter-authority recoupment (£1.0m);
c)Private, voluntary and independent nurseries (£25.9m);
d)Education out of school (£9.3m) and
e)Provision for pupils with SEN (£11.0m).
7.3Experience in 2006-07 has highlighted pressures across the above headings of around £1.0m to £1.2m.
7.4The independent special school budget has been increased in 2007-08 by £1.5m to reflect a more “typical” level of expenditure.
7.5Contingencies in 2007-08 have been increased to offer some flexibility should budgets “overheat”.
8.0Recommendations
8.1The Forum is requested to support:-
i)An increase to the contingencies budget to offset the closure of BraysGroveSchool, Harlow, and/or
ii)an increase to the Integrated Support Service to reflect Agenda Item 4 (£650,000);
iii)the breach of the CEL by £7.9 million.
- 1–
Pink