PAPER C

 

 

EDUCATION, COMMUNITY DEVELOPMENT AND LIFELONG LEARNING SELECT COMMITTEE -  15 DECEMBER 2003

 

EDUCATION FINANCE 2004-5

 

STRATEGIC DIRECTOR OF EDUCATION AND COMMUNITY DEVELOPMENT

 

 

REASON FOR SELECT COMMITTEE CONSIDERATION

 

The Council has to notify the Secretary of State of its intentions regarding the ‘passporting’ of funds to the Schools Budget by 31 December 2003. The Committee have requested the opportunity to scrutinise the Education Budget considerations and to receive representation of the schools’ views from the Chair of the Schools Forum.

This matter is part of the Committee’s Forward Plan.

This matter will be considered by the Executive on 17 December 2003

ACTION REQUIRED BY THE SELECT COMMITTEE

  1. The Committee is asked to scrutinise the elements that comprise the Education Budget and to question for clarification and/or for the reasoning behind the data provided .
  2. To receive the recommendations of the Schools Forum
  3. To recommend the passporting of the Schools Budget
  4. To recommend that the Executive notes the shortfall in the ‘central services’ element of the Schools Budget and the shortfall in the L.E.A.Budget and that as much as possible of the shortfalls are made good within the context of the overall Council Budget

 

BACKGROUND

 

The Education Formula Spending Share (EFSS) for the Isle of Wight for 2004-5 is £67.874 million.  It has to pay for two main blocks of expenditure. These are shown on the next page. There are changes to Government requirements this year that reduce the flexibility for allocating the money provided. The principal change is to provide schools with guaranteed increases to their income based on a minimum uplift to the amount they receive for each pupil. This has to be in proportion to the rate of increase we have received for the Schools Block

 

 

 

 

 

Schools Block

 

LEA Block

 

INDIVIDUAL SCHOOLS BUDGETS (1SB).  The budgets that are delegated to schools.

These will be increased by at least 4%

Proposed ISB = £50,873,087

 

 

For example:

  • Strategic Management of the Service
  •  Support and challenge to schools
  • Transport
  • Special Education support
  • Premises
  • Education Welfare
  • Child Protection

 

Total available = £8,023,000

 

 

Other PUPIL SERVICES eg SEN (Low Incidence), SEN Mainland Placements, Early Years Education for pupils out of school, Admissions to schools, contribution to Standards Fund

Total available for Central Services  =

£9,757,913

 

 

The Government requires that we ‘passport’ to the Schools Block an amount that corresponds to the increase we have been given.  The minimum Schools Budget will have to be £60,631,000.  This is not optional.  The Government has the power to require Authorities to passport. The ISB shown above is the minimum that we can delegate if we are to meet the new tests.

The appendices show all the reasoning behind the figures shown above.

Unfortunately, the protection given to the delegated budgets to schools has two knock-on effects:

1. It squeezes the amount available to pupil services in the Schools Block

      2. It squeezes the amount available to the L.E.A. Block

 

Details of these ‘squeezes’ are shown at Appendix 2  - page 2 (Central Services, Schools Block) and pages 3-4 (Central Services, L.E.A. Block)

 

The appendices are complex and it is proposed that this background is expanded with explanation at Committee.

 

RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS

The Education Budget is fundamental to all Education Plans and Policies.

 

 

 

CONSULTATION PROCESS

 

The appendices have been discussed in detail with the Schools Forum. The Chair of the Forum has been invited to address this meeting

 

FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS

 

These budget outlines will form part of the Council’s data when considering the overall Council Budget.

 

The Education Act 2002 gives the Secretary of State the power to determine the minimum passporting figure that the Council must provide for the Schools Budget.

 

The quality and inclusiveness of Education Services affect levels of crime and disorder.

 

APPENDICES ATTACHED

 

Appendix 1 gives an Executive Summary

Appendix 2 gives a detailed summary of the constituent elements of the Education Budget

Papers B,C,D and E show the mathematical working

 

BACKGROUND PAPERS USED IN THE PREPARATION OF THIS REPORT

None, apart from the appendices, have been used in the preparation of this report

 

Contact Point : Kim Johnson, Assistant Director, Head of Planning and Resources, Education and Community Development Directorate

Telephone : 823410    e-mail: [email protected]

 

 

DAVID PETTITT

Strategic Director of Education and Community Development