PAPER B

 

                                                                                                                Purpose : for Decision

                        REPORT TO THE EXECUTIVE

 

Date :              17 DECEMBER 2003

 

Title :               EDUCATION BUDGET 2004-5

                       

REPORT OF THE PORTFOLIO HOLDER FOR EDUCATION AND COMMUNITY DEVELOPMENT

 

IMPLEMENTATION DATE : 7 January 2004

SUMMARY/PURPOSE

 

1.                  To reach a decision regarding the passporting of the Schools Budget.

 

2.                  To note the Select Committee recommendations as they apply to the Council Budget Setting Process

 

CONFIDENTIAL/EXEMPT ITEMS

 

3.                  This is not a confidential item

 

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 1  - page 2 (Central Services, Schools Block) and pages 3-4 (Central Services, L.E.A. Block)

 

STRATEGIC CONTEXT

 

4.                  The Education Budget is fundamental to the achievement of the Corporate objective of Raising Standards and Promoting Lifelong Learning.  The three overarching Service Plans of the Education and Community Development Directorate specify service objectives the achievement of which are dependent on the levels of funding provided.

 

CONSULTATION

 

5.                  The Schools Forum has been fully consulted. The Chair of the Schools Forum was invited to express the schools’ views to the 15 December meeting of the Education, Community Development and Lifelong Learning Select Committee during its scrutiny of this item.

 

6.                  The results of the consultation are expressed in the minutes of the meeting referred to above.

 

FINANCIAL/BUDGET IMPLICATIONS

 

7.                  All figures used by the scrutiny committee were prepared by the manager of Education Finance and are available as appendices to the Select Committee meeting of 15 December 2003

 

8.                  Education Formula Spending Share (EFSS) is provided by central government. The settlement for 2004-5 is £67.874 million – there is a requirement that £60.631 million is passported to the Schools Budget

 

LEGAL IMPLICATIONS

 

9.                  The Education Act 2002 gives the Secretary of State the power to require Local Authorities to passport a minimum amount to the Schools Budget

 

10.             Section 52 of the Schools Standards and Framework Act 1998 states the requirement for Local Authorities to account for their expenditure in a standardised manner. The data contained in this account allows the Secretary of State to determine the expected passporting requirement

 

OPTIONS

 

11.             a) to agree to passport £60.631 million to the Schools Budget

b) to decline to passport the required amount

 

EVALUATION/RISK MANAGEMENT

 

12.             11a is recommended. It is clear that the Secretary of State intends to use his power if necessary this year.

 

RECOMMENDATIONS

 

Please see 11a

 

BACKGROUND PAPERS

 

13.             Members are referred to the Committee Papers for the Education, Community Development and Lifelong Learning Select Committee of 15 December 2003

 

ADDITIONAL INFORMATION

 

14.             Appendix 1  of the papers submitted to the Select Committee is included . It is referred to in the Background section

15.              

Contact Point :Kim Johnson Telephone:823410 ; e-mail : [email protected]

 

K JOHNSON

Head of Planning and Resources Services

J WAREHAM

Portfolio Holder for Education and Community Development