Transcript Schools Forum 1 July 2010

Budget Planning Framework
2013/2014
David May
Strategic Finance Manager – Children’s Services
Budget Planning Framework
• School Funding Settlement
–
–
–
–
Funding Blocks
MFG
Pupil Premium
Education Services Grant
• School Funding Reform
– Schools Block
• Centrally Retained
• New Areas of Delegation
• Business Rates
– Early Years
– High Needs Block
• School Meals
• Timeframe
School Funding Settlement
• School Funding Settlement announced on 19th
December 2012
• Continuation of the “spend-plus” methodology for
2013/2014
• Presentational changes to DSG to show 3 spending
blocks:
– Early Years Block
– Schools Block
– High Needs Block
• Baselines have been adjusted to reflect the changes
Dedicated Schools Grant - Funding Blocks
Dedicated
Schools Grant
Early Years
Schools Block
2012/2013 DSG (new
formula)
2013/2014 DSG
GUF
2013 /
2014
Total
GUF
2013 /
2014
Total
£
£m
£
£m
Pupil
No’s
2,520
5,116
12.892
2520
35,403
4,536
160.586
35,073
High Needs Block
Total
Pupil
No’s
21.135
37,923
194.613
5,116
16.034
4,536 159.145
21.172
37,593
196.351
Dedicated Schools Grant - Schools Block
2012/13
2013/14
Change
35,403
35,073
(330)
Guaranteed Unit
of Funding
£4,535.95
£4,535.95
0
Total
£160.586m
£159.091m
(1.495)
£0.054m
0.054
£159.145m
(1.441)
Pupil Numbers
NQT Funding
Total
£160.586m
Cash
Increase
-0.93%
-0.90%
School Funding Settlement – Minimum
Funding Guarantee (MFG)
• The Minimum Funding Guarantee for schools will continue to
reduce turbulence as new local formulas are introduced.
• The guarantee is set at minus 1.5% per pupil for 2013-14 and
2014-15. The level for subsequent years will be announced
when spending plans for that period have been decided.
This means that:
• No school will see more than a 1.5% per pupil reduction in
2013/2014 budgets (excluding sixth form funding) compared to
2012/2013 and before the Pupil Premium is added
• No school will see more than a 1.5% per pupil reduction in
2014/2015 budgets (excluding sixth form funding) compared to
2013/2014 and before the Pupil Premium is added
Pupil Premium 2013/2014
• Indicative National Allocation £1.7bn
• Pupil Premium for disadvantaged pupils is £900 per
pupil.
• Service Premium is £300 per pupil
• Pupil Premium is calculated using the January 2013
school census data, final allocations will not be
confirmed until Summer 2013
• Sunderland’s Illustrative allocation is £11.346m, an
increase of £3.838m.
• Illustrative examples have been provided and this will
be included in information presented to schools.
Education Services Grant (ESG)
•
•
•
•
•
•
•
•
New grant to be introduced in 2013/14
Replaces LACSEG which will no longer exist
Additional funding is to be delegated to all Schools/Academies through
changes introduced as part of the Schools Funding Reform
The ESG will be allocated to local authorities and academies on a
simple per-pupil basis according to the number of pupils for whom they
are responsible.
The funding for the ESG comes from a transfer from local government
of £1.04 billion in 2013-14. Sunderland’s reduction in funding is
£5.416m.
Transitional protection for academies will apply in 2013/14 and
2014/15.
Provisional local authority ESG allocations will be issued in early 2013.
Final ESG allocations for academies will be issued by 31 March 2013
along with confirmation of the academy’s 2013/14 General Annual
Grant.
Education Services Grant
Statutory
Functions
Statutory
Duties
2013/14
Statutory
Duties
2014/15
Local Authority
£15
£116
£116
Academies
N/a
£150
£140
Special Academies
N/a
£637.50
£595
Alternative Provision
Academies
N/a
£562.50
£525
For special academies and alternative provision academies, multipliers of 4.25
and 3.75 will be applied respectively. ESG allocations will be calculated using
2013-14 planned places.
Transitional protections for academies will be removed from the system over a
limited period of time so that the rates for local authorities and academies are
brought together
School Funding Reform 2013-15 - Overview
• From 2013/2014 a simple, more consistent and transparent
funding system will be introduced that
– ensures as much funding reaches schools as possible;
– provides equivalent and consistent funding between maintained
schools and Academies; and
– supports the needs of pupils.
• Simplification of local formulae is a major change to how school
budgets are calculated and the first substantive step towards a
national funding formula
• Key priority that the schools budgets are driven more by pupil in
the schools and their needs than by other factors
• Funding can only be distributed based on 12 factors and using
data provided by the DfE - No flexibility;
• Changes in the formula factors and data to be used will cause
funding turbulence between Schools
Schools & Early Years Finance Regulations
2012
• Legislative framework that brings together all the
changes in the School Funding Reform
• Effective from 1st January 2013
• Local Funding Formula must be compliant with the
Finance Regulations
• School Forum approval required for central schools
and early years block items
• Education Funding Agency validate local funding
formula to ensure compliance
Reconciliation of Schools Block Allocation
£
Total Indicative Schools Block DSG
NQT Funding
Revised
159,090,777
53,554
159,144,331
Add Transfer from High Needs Block:
1,918,097
Less Transfer to Early Years Block
(249,573)
Revised Schools Block
Centrally Retained Schools Block Funded Services:
Total Individual Schools Budget
160,812,855
(913,318)
159,899,537
Transfer from the High Needs Block
• Work has been undertaken to consider the impact of
changes to the way statements are funded from
within the schools block and high needs block.
• Existing statements have been examined to quantify
the value of top up required within the High Needs
Block and the funding to be transferred from the High
Needs Block into the Schools funding to contribute to
the first £6,000 to be paid by schools
• £1,918,097 is to be transferred to the schools block.
Transfer to Early Years Block
• In reconciling the funding blocks an error has been
found between the Early Years and Schools Block
control totals.
• This relates to 4 Academy schools iro 3 and 4 year
old funding being retained in the Schools Block in
error.
• In order to ensure appropriate funding is available
within the early years funding it is necessary to
transfer £249,573
• No impact on school funding as the funding has
always been related to the 3&4 year old offer
Central Services retained by the LA
2012/2013
2013/2014
£203,676
£203,676
£44,642
£44,642
Termination of employment costs *
£660,000
£245,000
Carbon Reduction *
£270,000
£320,000
School Admissions
Schools Forum
CLA & MPA Licences *
Total
£100,000
£1,178,318
* Future slide
Difference of £265,000 will be delegated to Schools
as part of School Funding Reform
£913,318
Central Services retained by the LA
• Termination of employment costs
– In previous years the School Forum agreed to contribute
£660,000 to school based Redundancies
– Academies received a proportion of the budget through
Schools Block LACSEG
– From previous decisions agreed by the Schools Forum
ongoing commitment of £245,000
– Uncommitted budget remaining of £415,000 to be delegated
to schools and academies
Central Services retained by the LA
• Carbon reduction commitment
– Increase of £50,000 approved by SF 13th December 2012
– Increase based on current estimates and forecasts
– In 2014/15 the forecast allowance price will rise to £16 per
tonne of carbon dioxide, an increase of £4 per tonne.
– Estimated Increase of £90,000, to £410,000 in 2014/15
– The Chancellor’s Autumn Statement 2012 contained
measures to simplify the CRC scheme.
Central Services retained by the LA
• CLA & MPA Licences
– From April 2013, the Department for Education will manage a
national CLA Schools Licence for all state maintained schools in
England and a MPA licence for the copying of sheet music.
– The funding for these specific licences should be held centrally for
both maintained schools and recoupment Academies. We will be
issuing a general dispensation under the Regulations to enable all
LAs to hold this funding centrally.
– Authorities will need to remove the budget provision they have
made for these licences from the ISB.
– No detail has been provided of the cost implication for Sunderland.
CLA licence costs in 2012/13 are £49,000.
– As the agreement is for CAL and MPA licences it is proposed a
budget of £100,000 is retained at this stage.
• Net Impact - £265,000 will be delegated to Schools as part of
School Funding Reform
New Areas of Delegation
• Schools Block
–
–
–
–
–
Free school meals eligibility;
Insurance;
Staff costs - trade union facility time;
Behaviour support services;
Contribution to Combined Services
• Education Safeguarding Team;
• Derwent Hill Advisory Service
• High Needs Block
– Support for minority ethnic pupils or underachieving groups;
– English as an Additional Language
• De-delegation will not be applied to Maintained Schools.
• All schools/Academies will receive funding in their budgets.
• Traded services will be developed for Schools and Academies.
Review of the Non-Domestic Rates Discretionary
Relief Policy to Academy and Voluntary Aided
Schools
• Schools receive budget equal to the cost of business rates. Any
increases in business rates through revaluations or change in
policy will be funded from the Dedicated Schools Grant.
• Maintained schools as part of the Academy transfer receive
funding for 20% of the business rates charge.
• Academies and VA schools currently do not pay business rate.
• On conversion Saving to the DSG of 80% - Loss of Funding to
the Council 20% - Saving to the Academy of 20%
• Changes in the Business Rate System and LA funding
necessitate that from April 2013 the 20% discretionary relief will
be removed
• Business rates charge to VA Schools, budget will need to be
provided from the DSG an increase of £113,000 that can be
funded from savings achieved through Academy conversion
Reconciliation of Early Years Block
Early Years Block
Add Transfer from schools block
Less Transfer to High Needs Block
(Early Years SEN Statements)
£16.034m
£0.250m
(£0.025m)
£16.259m
Early Years Funding Block
2013/2014
3 & 4 Year old Offer
£10.818m
2 Year Old Offer
£3.142m
Concord & Thorney Close Day Nursery’s
£0.749m
Commissioned Childcare
£0.846m
Childcare Team & Locality Based Working
£0.704m
Total
£16.259m
Reconciliation of High Needs Block
Total Indicative High Needs Block
Less Transfer to Schools Block:
Add Transfer from Early Years Block
Revised High Needs Block Total
£21,172,147
(1,918,097)
24,996
£19,279,046
High Needs Block
• Balancing block
• Confident that Schools and Early Years Block are
accurate
• Uncertainty and work to complete
• Within Early Years Block growth of 2 year olds – one
off slippage that will support the High Needs Block
• Updates will be provided at each meeting
Dedicated Schools Grant - Funding Blocks
Total
Statement
Adjust
Early Yrs
Correction
Total
£m
£m
£m
£m
Early Years
16.034
-0.025
0.250
16.259
Schools Block
159.15
1.918
-0.250
160.813
High Needs Block
21.172
-1.893
Total
196.35
0.000
19.279
0.000
196.351
School Meals
• The School Forum has up until now agreed the price per meal
as the decision influenced the local funding formula that directed
funding to schools.
• New Funding Formula - No School Meal factor allowed
• Funding is delegated to Schools based on Pupil Number and
Deprivation
• Significant inflationary increase to food prices over the past 2
years
• School Meal Consortium asked the Schools Forum to approve
an increase to the price of a School Meal from September 2013
by 10p (last increase September 2011)
• Sunderland primary school meal price second lowest in the
region
• Following discussions at the last Schools Forum and changes in
the School Funding Reform that break the link with funding it is
considered appropriate that the decision to increase the price of
a school meal is for each individual school to determine.
School Funding Reform 2013-15 - Timetable
Jan 17th
School Forum Meeting
Jan 22nd
LAs submit final pro-forma to EFA (this is a
th
changed date from 18 January)
W/c Feb
th
25
School Funding Statements issued to
schools
Mar 21st
School Forum Meeting to discuss
Early Years and Alternative Provisions
(PRU)
Briefing Sessions
• School Funding Briefing Sessions
– Barmston Mere January 22nd 9.00 -10.30
– Barmston Mere January 22nd 11.00 -12.30
• Governor Briefing Sessions
– Sandhill Centre January 22nd 6.00 – 7.30
– Washington Arts Centre January 24th 1.00 – 2.30