Context 1

Flintshire Analysis of Costs 43% Educ ation Capital and other financing costs Social Services for Children Leisure, Libraries and Culture Housing Services eg. Homelessness, housing advice Social Services for Adults Waste & the Environment Highways & Transportation Local Democracy and Communit y Support Planning & Development

Context 2

» » » » The average cost of a secondary school is £3.3 million The cost of a medium sized primary school is £632,000 The Council’s contribution to school transport is £6.8m (total cost £6.9m) Our contribution to youth services is £1.2m (total cost £1.5m) » The Schools’ Budget is 33% of the Council’s overall budget

The Budget Gap

» » A reduction in funding of 1.6% for 2015/16 would equate to a budget gap in the region of £12m for Flintshire, and £30m over the next 3 years A reduction in funding of 3.4% for 2015/16 as indicated in the provisional settlement would increase the budget gap by £4.4m leaving an amount to find in the region of £16.4m next year » Compounded by possible additional reductions to specific grants “in year” and between years. The provisional settlement indicates a reduction of 15% in 11 major grant areas (excluding PDG) » Over the past 3 years we have already achieved some £22m worth of savings so no-one should be under any illusion over the scale of the challenge

Funding Assumptions

» » » Over the past three years schools have been relatively shielded from funding cuts due to the Ministerial funding commitment As of yet there has been no indication from Welsh Government that there is an expectation that schools budgets will be protected in 2015/16 In previous years schools protection has been 1% above the change in the block grant from Westminster to the Welsh Government (in 2015/16 the block grant will decrease by 0.4%).

Planned Pressures (Contributing to the Gap)

» Known pressures are identified within the £16.4m budget gap » An increase of 2.3% in the employers’ pension contribution for teachers from September 2015. The total impact of this in 2015 based on current teacher costs is £740k in 2015/16 (part year effect) and £1.27m in future years.

» » Pay awards (1%) and general inflation (2%) Change in National Insurance Contributions from April 2016.

Bridging the Gap

» No Local Authority can set an unbalanced budget » What principles should underpin our budgeting?

» What are our options?

Shared Values & Principles

» We will value academic outcomes but not in isolation, we value the whole child & young person- one that is resilient, safe, skilled, confident & happy » We will strive to enable & empower our children & young people to be all they can be, to achieve more than they ever believed they could, to dream & aspire to a future full of opportunity & be brave enough to try and achieve it

Shared Values & Principles

» We will enable & empower our children & young people to overcome any barriers they face & through these challenges develop a resilience that will serve them well throughout their lives » We will be generous with our time, share what we have learnt and ensure we develop opportunities to grow our leaders of the future » We will develop an education system than is internationally acclaimed & a nation that is strong, confident & skilled

Budgeting Principles

» Bridging the gap requires selfless leadership & thoughtful timely decisions » All services contributing to finding new ways of working to sustain local public services as far as we are able » Resources deployed to the ‘frontline’ as efficiently as possible » Aiming to “protect the learner’s experience in the classroom” as far as possible

Operating Model Part 1

» » » A reducing hub of officers will develop & performance manage essential services, including school place planning & provision, to ensure consistency, quality & value for money Service delivery will increasingly be through partnership arrangements. These include regional & sub-regional delivery on core education functions & third/voluntary sector on youth services Some services are likely to cease or be reduced significantly in order to protect the integrity of core teaching & learning activities & statutory youth work with vulnerable young people

Operating Model Part 2

» In order to provide resilience and to safeguard quality, we also need to fully develop the potential of school clusters to become self-sustaining and providers of peer to peer support for Continuing Professional Development, additional learning needs and business support » This approach can increase efficiency and mitigate the impact on workload of reductions to budgets and decreases in central services and support » This model is reflected in the Education & Youth Portfolio Improvement Plan for 2014-15

Non- Schools Budget

» The “non-schools” budget, includes access (school planning, provision, admissions & transport), core school improvement, inclusion and preventative services such as integrated youth services, team around the family, families first, NEET prevention... » The summary is provided from estimated savings from options identified to date » All options have been subject to initial challenge » Some options have not yet been costed. Table content is therefore a working model & subject to change.

Non-Schools Budget

“Non-Schools” 2015-16

£30k School Management information Team Commissioning & Performance £30k Primary & Early Years £317k Secondary, 14-19 & Continuing Education £81k Inclusion Services Access (School Planning & Provision) Youth Services Schools Library Service

Sub-total

£452k £239k £119k £139k

£1407k 2016-17

£107k £1k £17k £61k £150k £4k £106k

£445k 2017-18

£51k £61k £360k £4k £95k

£571k

Schools Budget

» Gap is unlikely to be bridged without schools also finding efficiencies » » Technically made through the funding formula Schools have choices to make about affordable staffing, local service provision and service subscriptions » Some supportive analysis e.g. Sutton Trust

Schools Budget: What Do We Mean?

More focus on collaborative school leadership (Hill Review) For example: » Strengthening cluster working & federations » Shared leadership » Shared commissioning of CPD » Shared Business Support » Shared remodelled inclusion support for learners

Example Primary School

» » »

Total Budget £1.3m

Number of Pupils 430 Formula Distribution

» »

Teaching Non-Teaching Staffing

» » » » »

Premises Energy Supplies & Services NNDR SLA's 67% 18% 4% 2% 5% 1% 3%

»

Potential Impact of ‘10%’ Savings

Because many of the non staff costs are ‘fixed’ or unavoidable for example NNDR the bulk of the savings would have to come from staffing

»

The impact on our example school would be an estimated reduction of two teaching staff per annum

»

In 2014/15 the school has a pupil teacher ratio (PTR) of 26.9, if the savings are applied this would increase to 30.8 PTR in year 1, 35.9 in year 2, and 43.1 PTR in year 3.

Schools Budget: What Do We Mean?

Not being able to meet cost pressures could lead to larger pupil teacher ratios, increased pressure on school leaders & is a major risk to school standards Mitigations Major known current inefficiency is in maintaining surplus places Renewed effort on school organisation could decrease the impact on individual school budgets in year 2 and 3 by reducing infrastructure costs

Schools & School Networks

» Schools with the scale and resilience to deliver the curriculum opportunities that our students need to succeed in today’s employment market. It is the job of governors, school leaders, teachers and other staff to: » set high expectations of pupils, constantly seeking to improve the quality of teaching and learning; & » raise standards, share good practice & learn from one another through genuine partnerships & school-to-school support.