GCC Budget 2007/08 Children & Young People

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Agenda

Welcome and Introductions (by Chair) Budget Presentation Open Forum Closing Remarks (by Chair) Close

Budget Presentation

• Overall Funding Context • Council Priorities • Proposed GCC Budget 2007/08 • Dedicated Schools Grant 2007/08 • Impact on Budgets • Funding Outlook • Schools’ Financial Management • Consultation • Discussion Items

Overall Funding Context #1

Government Formula Grant Council Tax Dedicated Schools Grant Other Government Grants Local Fees/Charges Schools

x x

   Other Services  

x

   Constraints on funding influence decision making (choices, priorities, investment, disinvestment)

Overall Funding Context #2

• Proposals made in the context of DSG funding regime and 2 nd year of 2-year funding settlement • Govt’s Council Tax Capping Regime continues • Local Council Tax rise lower than 06/07 • Not meeting all service needs, BUT • Focus on priorities • Disinvest to reinvest (some major service reshaping)

Council Priorities

Supporting communities and vulnerable people Ensuring every child thrives and reaches their potential Making transport work Managing our environment and economy Making our communities safer Driving Excellence (and maintaining low council tax)

Every Child and Young Person thrives and reaches their potential

Outcome Priorities Be Healthy Improve emotional health and well-being Stay Safe Enhance personal safety Co ordinate services for children and young people with disabilities Enjoy and Achieve Improve attainment of the most vulnerable groups Expand and co-ordinate support for young families Make a positive contribution Reducing levels of offending Achieve economic well-being Improve choices for 14-19 year olds

Proposed GCC Budget 2007/08 #1

Service Analysis

Children & Young People Community & Adult Care Environment CESU Business Management Corporate and Technical Budgets Additional Police Officers

Proposed Budget 2007/08 £M

61.6

114.1

49.0

21.8

20.0

37.5

0.9

308.7

%

+3.3

+4.2

+4.7

+2.4

+0.5

-1.5

+148.0

+3.1

Proposed GCC Budget 2007/08 #2

CYP Budget

Base Budget 2006/07 Inflation Increased Spending Efficiencies / Other Savings

Budget 2007/08 £M

59.7

1.8

2.8

-2.7

61.6 +3.3% DSG (Schools) Budget 294.2 +5.1%

Proposed GCC Budget 2007/08 #3

2007/08 Funding Increases 2007/08 CYP Provisional Funding Council Tax Funded 17% DSG Funded 83% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Council Tax Funded DSG Funded

Proposed GCC Budget 2007/08 #4

• Increased Spending / Investments on CYP Budget

£M

Transport +1.5

Legal fees In-house Social Care provision CYPwD / enhanced OT +0.3

+0.4

+0.2

Youth Housing Support Workers VCS Grants Other

Total

+0.1

+0.1

+0.2

+2.8

Proposed GCC Budget 2007/08 #5

• Efficiencies / Other Savings on CYP Budget

£M

Agency Care Placements -1.0

School Pensions Advisers staff reorganisation -0.7

-0.2

Youth Housing Support contract VCS Grants Efficiencies Other

Total

-0.1

-0.1

-0.4

-0.2

-2.7

DSG Budget 2007/08 #1

Dedicated Schools Grant (DSG): • 07/08 Funding unit increase 6.4% (in line with average) • Guaranteed Funding Unit (GFU) £3,573.84 / pupil • Glos ranked 138 th (previously 137 th ) out of 149 • “Shrinking pot”  On Jan 06 pupils, 07/08 DSG worth £17.9M

 On Jan 07 est., 07/08 DSG worth £14.2M (£280M to £294M) i.e. pupil reduction worth £3.7M

• Final 07/08 DSG = 07/08 GFU x Jan ’07 pupils

DSG Budget 2007/08 #2

2007/08 DSG Increase (estimated) £M 14.2

+5.1%

Proposed Allocation • Schools Commitments (estimated) • Other Commitments (estimated) • Balance for New Investment (estimated) +11.3

+0.2

+2.7

DSG Budget 2007/08 #3

Schools Other £M £M • MFGs / Govt. priorities +9.7 • Demographic reductions in schools -2.0 • Headroom 2006/07 +1.2

• Statementing / rates / threshold etc +0.9 • • Inflation / LG Super • Overs(+)/Unders(-) 2006/07

Total

+0.9

+1.5 -0.7

Total £M

+11.3 +0.2 +11.5

Balance for New Investment (including headroom) +2.7

but Post-16 funding mismatch (MFG cost > LSC funding)

DSG Budget 2007/08 #4

NEG –334  CC / EY +334 Recoupment saving –150  Special Schools +150 Carbon Emissions (Invest-to-Save Fund) Race Equality & Diversity Service Targeted School Improvement School Attendance Maintenance of School Buildings Children & Young People with Disabilities Development of SEN Provision in Gloucestershire Potential over-estimate of DSG (pupil numbers) Other + Schools’ Headroom £000 0 0 +150 +227 +100 +100 +500 +250 +450 +90 +75

DSG Budget 2007/08 #5

Headroom: • Overall resource dependent upon agreed priorities for new investment • Schools Forum agreed to share any headroom pro-rata to overall budgets (Prim 47%, Sec 47%, Spec 6%) • Distribution to individual schools using needs-led formulae • Greater number of schools receive a share each year, so average sum per school reduces • Any headroom built into next year’s budget permanently

DSG Budget 2007/08 #6

• SSG increase by Chancellor: Prim £6.6M to £7.9M +18.7% (£12k + £114/pupil) Sec £5.0M to £5.7M +14.5% ( £12k + £121/pupil) Spec £0.4M to £0.5M + 9.5% ( £29k + £114 / pupil) • Threshold Grant probable (3-year?) phasing of “snapshot”  formulaic w.e.f. 2008/09

Impact on Schools’ Budgets

• MFGs • Govt. priorities • Local priorities    funding stability targeted funding • Full NLF delay  • Falling pupils (Prim.)  locks in inequities adds pressures agreed by Schools’ Forum - NLF distribution - New investment in 07/08 • “Headroom”  relieves pressure (some schools) • Balances  “haves” and “have nots”

Impact on Local Authority Budgets

• Keep Council Tax low  many cash limited budgets • Significant cost pressures (inflation,Transport “super inflation”, LG Super) • Limited growth (but targeted to priorities) • Efficiency savings / budget cuts • Minimal –ve impact upon services wherever possible

Funding Outlook 2008/09 (National)

• Overall funding levels  end to ‘generous’ funding era • CSR 2008 (2008/09 - 2010/11) in 2007  predictability • Ministerial commitment to “to listen” to ff4gs campaign and discuss national funding  More funding for Glos? Who knows?

• Resource allocations to LAs?

 potential turbulence • • MFG continuation?  Pupil numbers  definitely but likely decrease shrinking DSG (in real terms) ?

Funding Outlook (Local)

• Continuation of low Council Tax rises  limited budgets!

• Efficiencies ever more difficult to achieve  service cuts?

• Increased demands/commitments • Increased expectations?

• Further review 2008/09 of Primary/Secondary Schools’ NLF (WFR, TLRs, ICT, 14-19 threshold) • Special Schools’ NLF draft model out for consultation (implement in part wef 2008/09)

Schools’ Financial Management

• DfES expectations  VfM and FMSiS compliance • FMSiS - Secondary schools expected to comply Mar 07 - Prim/Spec compliance between Mar 08 & Mar 10 • Governor’s Budget Plans used to identify schools “causing concern”, potential staffing reductions (impact on pensions) - sound financial planning (claw-back of balances) - timely return necessary  schools’ co-operation essential

Consultation – Next Steps

• Information sharing meeting • Schools’ Forum sub-group • Schools’ Forum • CYP Scrutiny • Budget consultation responses (by) • Final budget to Cabinet • Formal Council budget-setting  10 Jan  12 Jan  16 Jan  17 Jan  19 Jan  7 Feb  21 Feb • Schools’ Forum (“last-minute issues”)  • Then final budgets issued to schools 6 Mar

Specific Issues for Discussion

• Overall County Council budget proposals • Proposed new investment from DSG • Any other issues of concern

Questions?

Council Tax Budget Proposals: http://www.gloucestershire.gov.uk/index.cfm?articleid=14668

Comments to County Council’s Consultation Team:

http://www.gloucestershire.gov.uk/index.cfm?articleid=141 Dedicated Schools Grant Budget Proposals: http://www.gloucestershire.gov.uk/index.cfm?articleid=8639

Comments to your Schools’ Forum governor representative