PAPER B

 

                                                                                                              Purpose : For Decision

 

                        REPORT TO THE EXECUTIVE

 

Date :              29 JANUARY 2003

 

Title :               SCHOOLS BUDGET FOR 2003-04

 

                        REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

 

 

SUMMARY/PURPOSE

 

1.                  The Council is required to notify the Secretary of State for Education and Skills of its intended schools budget for 2003-04 by 31st January. Members are requested to determine the level of the schools budget which they intend to recommend to Council on 19th February, so that this information can be passed to the Secretary of State.

 

BACKGROUND

 

2.                  The Council has been exhorted by the Secretary of State to set a minimum Schools Budget for 2002-03 of £57,155,000, which is £807,000 in excess of the Formula Spending Share for schools of £56,348,000 provided in the Revenue Support Grant proposals.

 

3.                  The Executive agreed at its meeting on 15th January 2003 to recommend passporting of the full amount suggested by the Secretary of State.

 

STRATEGIC CONTEXT

 

4.                  Raising education standards has been, and remains, a key Council priority. In the recent past, therefore, the Council has always passported increases in Standard Spending Assessment through to Education in full. On this occasion the Secretary of State is asking for more resources to be passed to schools than are provided in the Council’s Formula Spending Share.

 

5.                  Even with the additional £807,000 requested, the budget will not be sufficient to fund a ‘standstill’ level of service. This is a reflection of the unfavourable Revenue Support Grant proposals for this Council.

 

CONSULTATION

 

6.                  The November budget consultation showed a majority of respondents (52%) definitely opposed to reductions in school budgets, and only 17% definitely in favour. (The remaining 31% would ‘reduce if I had to’).

 

FINANCIAL/BUDGET IMPLICATIONS

 

7.                  Additional spending of £807,000 equates to 1.8% on the Council Tax. As part of its budget considerations in February, the Executive will need to take a view as to what extent savings in the non-schools part of the Education budget are deployed to reduce the savings required in schools, or are used to reduce the Council Tax increase.

 

OPTIONS

 

8.                  To agree to recommend a schools budget of at least £57,155,000, consistent with the previous resolution, or to agree some lesser sum.

 

EVALUATION/RISK MANAGEMENT

 

9.                  If the Council were to tell the Secretary of State on 31st January that it did not intend to passport the full amount requested, then in theory the budget process could be delayed by up to four weeks, culminating in a requirement to comply. This would be unlikely to happen in the current year because the Council:

 

(a)               would be spending at Formula Spending Share

(b)               has demonstrable service pressures in other areas

(c)               provides a two star service

 

Each of these has been mentioned as a possible defence against full passporting.

 

RECOMMENDATIONS

 

10.             That the Council is recommended to set a Schools Budget of at least £57,155,001 for 2003-04.

 

BACKGROUND PAPERS

 

11.             Letter from the Department for Education and Skills dated 6th December 2003, ‘School Funding 2003-04’

 

Contact Point:            Paul Wilkinson (823650    mailto:[email protected]

 

J C PULSFORD

Strategic Director for Finance and Information and County Treasurer

 

R R BARRY

Portfolio Holder for Resources