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Dedicated Schools Budget 2007-08

By Ricky Hall,2014-12-13 10:19
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Dedicated Schools Budget 2007-08

    Schools Forum Meeting Thursday 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

    2.1 The 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.

    2.2 The 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.

    2.3 The 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

3.1 Individual 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 of 16 January 2006.

    Taking the PPG adjustment into account, the ISB has increased by nearer 5.2%.

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    Schools Forum Meeting Thursday 1 February 2007 Agenda Item 6

    3.1.1 The proposed budget reflects additional year on year resources which

    might be expressed as follows:

     ?,000

    2006-07 Final ISB 649,275

    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

    3.1.2 As 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).

    3.2 School Standards Grant (SSG).

    Nationally, SSG has increased year on year by some 26.4%. This is represented as:

School Standards Grant Nationally 2006-07 2007-08

    Pre-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.

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    Schools Forum Meeting Thursday 1 February 2007 Agenda Item 6

    3.3 School 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.

    3.4 Threshold 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.

    3.5 School 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 2007-08

     ?,000 ?000

    Pupil number trigger 1,378 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 800

    Schools Brays Grove

    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 2006 with regard to Brays Grove School 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.

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    Schools Forum Meeting Thursday 1 February 2007 Agenda Item 6

3.6 Fees 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.

3.7 Licences and Subscriptions.

    The ongoing effects of the increase reported to the Forum at its 17 October

    meeting are reflected.

3.8 Staff 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.

3.9 Termination of Employment Costs.

    The increase from ?100,000 to ?300,000 represents the likely impact of the

    closure of Brays Grove School. No costs will be met from this budget without a

    full report to the Forum.

3.10 Non-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.

    4.0 A comparison of the original Schools Budget 2007-08 as submitted to the

    DfES with the current draft.

    4.1 The 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 LAs prudent

    assessment has reduced its assumed DSG by ?3.1 million (or 830 pupils).

    4.2 The 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

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    Schools Forum Meeting Thursday 1 February 2007 Agenda Item 6

    ; The effects of other in year changes already reported on elsewhere in this

    report.

5.0 Minimum 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.

6.0 Central Expenditure Limit (CEL)

    6.1 As set out in Agenda item 5 the Forum has Executive powers to agree a breach

    of the CEL.

    6.2 A comparison of the LAs School Budget against the CEL is set out at Annex B.

    6.3 Whilst 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.

7.0 Risks

    7.1 The budget reflects the latest assessment of pupil numbers which will vary as

    January census data is finalised.

7.2 The 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).

    7.3 Experience in 2006-07 has highlighted pressures across the above headings of

    around ?1.0m to ?1.2m.

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    Schools Forum Meeting Thursday 1 February 2007 Agenda Item 6

    7.4 The independent special school budget has been increased in 2007-08 by ?1.5m

    to reflect a more “typical” level of expenditure.

    7.5 Contingencies in 2007-08 have been increased to offer some flexibility should

    budgets “overheat”.

8.0 Recommendations

8.1 The Forum is requested to support:-

    i) An increase to the contingencies budget to offset the closure of Brays

    Grove School, 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.

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