/ Schools Forum / Item 7 /
/ 10 July 2013 /
/ Growth Fund – revised mechanisms /
/ Report of the Director of Corporate Resources – Corporate Services and Director of Children’s Services /
Contact: Chris Holt, 01962 845673; ;
Josie Matthews, 01962 847020; ;
1 Summary
1.1 This paper sets out the proposed amendments to Hampshire’s 2013/14 Growth Fund, needed as a result of updated guidance from the Department for Education (DfE) regarding revenue funding arrangements.
2 Background
2.1 In June 2012 the DfE published “School Funding Reform : Arrangements for 2013-14.” This enabled local authorities to create a Growth Fund by top-slicing the Dedicated Schools Grant (DSG) in advance of allocating school budget shares.
2.2 The most recent Growth Fund paper was considered by Schools Forum in December 2012 (item 5c). It was agreed that Hampshire’s Growth Fund would support three elements: planned growth in pupil numbers, infant class size funding and temporary classroom rental funding.
2.3 To date, funding to support new, closing and schools being re-organised formed part of a contingency fund, which is a de-delegated item agreed by maintained primary schools and maintained secondary schools. The most recent Contingency Fund paper was considered by Schools Forum in December 2012 (item 5d)
3 Updated guidance
3.1 In March 2013 the DfE updated the ‘Operational guidance for local authorities – 2013/14 revenue funding arrangements’. The changes require funding to support new and re-organised maintained schools to be included in the Growth Fund. This includes the lead in costs, e.g. to fund the appointment of staff and purchase of any goods or services necessary in order to admit pupils. These costs should be provided for Academies and Free schools that are created to meet basic need.
3.2 The deficits of closing schools will continue to be met from de-delegated contingency.
4 Funding for New Schools
4.1 The present methodology for funding new schools is set out in the table below:
Category
/Cost base
/Additional criteria
Headteacher
/Actual salary costs for one term prior to opening
/Actual costs met only within the relevant pay band for the school
Headteacher recruitment
/Actual costs
/Up to a maximum of £5,000
Support costs
/Actual salary costs for one term prior to opening
/Administrative support only
Other recruitment
/Actual costs
/Up to a maximum of £10,000
4.2 This methodology is somewhat inflexible and requires a considerable amount of administrative time for both the school and County Council finance staff. At present a new school would be allocated a proportion of the lump sum depending on when they open. In addition to this they would also receive funding for being a new school based on actuals using the above table as guidance.
4.3 It is proposed that new schools be allocated a sum of £75,000 and can be used as the schools see fit to fund any lead in costs.
School opens
/Lump Sum
/Additional allocation for costs relating to new schools
April
/Full years allocation
(£190,000 in 13/14)
/£75,000
September
/7/12ths allocation
(£111,000 in 13/14)
/£75,000
January
/3/12ths allocation
(£47,500 in 13/14)
/£75,000
4.4 The level of funding for new schools is set at £75,000 and will be reviewed periodically.
4.5 Initial equipping funding will still continue at the rates agreed in the December forum paper and will be funded outside of the lump sum. Values are £60 per primary school place and £105 per secondary school place based on the number of places at the school.
5 Re-organising schools
5.1 It may be more appropriate to fund schools that are undergoing re-organisation on the basis of actual cost as set out in the table in section 4.1 rather than on the lump sum basis of £75,000 which will usually be more appropriate for brand new schools.
5.2 Costs incurred can vary considerably. In order to ensure an equitable yet flexible approach, each re-organisation will be assessed and the appropriate method of funding will be agreed by an Education and Inclusion Area Director following consultation with other relevant officers, including those in finance and school organisation.
5.3 Initial equipping will also be available at the same rates as in section 4.6.
6 Infant Class Size Funding
6.1 As reported to Schools Forum in December 2012 infant class size regulations (maximum of 30 pupils per class) do not apply in certain circumstances if the admission is outside of the normal admissions round. These exceptional circumstances are listed below:
· a statemented pupil;
· admission appeal panel placement;
· a child in care;
· a child who has recently moved to the area and no other place can be found within a reasonable distance of the home;
· children admitted to correct an administrative error;
· admission of twins and other multiple births and same cohort siblings;
· a child of service personnel.
6.2 In rare circumstances where the admission of “excepted pupils” to an infant class results in a class size of 33 or above, it is proposed that growth funding be allocated to meet the average cost of a Learning Support Assistant (£15,684 full year cost). The allocation of such funding would be reviewed on a termly basis.
7 Recommendations
7.1 To approve the proposed funding mechanism for new schools, whereby such schools will receive a lump sum element of £75,000 regardless of when they open.
7.2 To approve the proposed funding mechanism for schools which undergo a re-organisation, whereby such schools will be assessed on an individual basis and the appropriate method will be applied.
7.3 To approve the proposed funding of the average cost of a Learning Support Assistant for a school which admits “excepted pupils” resulting in an infant class size of 33 or above.
- 4 -
- 4 -