Agenda item

To update the Forum on the latest position on the level of Dedicated Schools Grant (DSG) income anticipated for 2014-15 and to present proposals in respect of the budget shortfall anticipated on the High Needs Block element of the Schools Budget.

The Forum received a report updating members on the latest position on the 2014-15 budget together with feedback on a number of items that were requested by members at the last meeting.

The level of Dedicated Schools Grant (DSG) income anticipated for 2014-15 had now been confirmed by the DfE with a £0.282m funding reduction on the High Needs Block element of the Schools Budget. In addition, the Forum was aware of an underlying budget pressure on High Needs Pupils which is now estimated at £0.376m. A number of savings had been managed within the Schools Budget which reduced the forecast over spending from these pressures to £0.333m. This forecast was made very early in the financial year and so was subject to change, but the expectation was that the Schools Budget General Reserve would need to be used to fund a significant over spending.

To help alleviate the cost pressure, the Council proposed to develop a 56 place Autistic Spectrum Disorder facility at Eastern Road. This would have benefits for students and reduce costs. The funding model indicated medium term annual savings of around £0.5m, although in the short term, there would be a £0.8m additional cost pressure as the facility moved to full capacity and the number of out of borough places fully reduced.

There were also a number of other budget matters presented to the Forum including proposals for additional financial support to Jennett’s Park Primary School, support to small schools experiencing excessive in-year increases in pupil numbers and funding allocations to schools from the High Needs Contingency.

The Forum NOTED:

1. that the amount of DSG funding expected for 2014-15, as confirmed by the Department for Education in April was £76.024m (paragraph 5.2);

2. that with the impact of early management actions, there was a forecast over spending on the Schools Budget of £0.333m which in the first instance would need to be financed from the Schools Budget General Reserve (paragraphs 5.8 and 5.9);

The Forum AGREED:

3. that in order to achieve significant medium term savings, the development of an SEN facility at Eastern Road was a high revenue budget priority (paragraph 5.12);

4. that £0.077m of additional financial support was provided to Jennett’s Park Primary School in 2014-15 from the school specific contingency (paragraph 5.16);

5. that as the school was now well established, future top up funding to Jennett’s Park Primary Schools should be made on the basis of the per pupil amount from the Funding Formula for Schools for 30 pupils, for the period each new class was open after the funding census has been taken, currently estimated at around £0.049m (paragraph 5.19);

6. that changes to the criteria for allocating funds in-year to schools experiencing significant increases in pupil numbers should be presented to all schools as part of the annual financial consultation (paragraph 5.29);

7. that a change in the fixed lump sum allocation payable to primary schools should be presented to all schools as part of the annual financial consultation (paragraph 5.29);

8. that the original criteria for allocating funds to schools from the SEN Contingency be applied in 2014-15 and that the need for change was reviewed as part of the 2015-16 budget setting process (paragraphs 5.34 and 5.35).