Issue - meetings

(CSP: BEC & BEC2)

Purpose: The Council’s Executive must agree on an annual basis the school funding formula for primary and secondary schools. This report sets out the proposal for the 2018/19 financial year.

Resolved that:

·         The school formula for 2018/19 is set as per the National Funding Formula factors and funding rates set out in paragraph 6.

·         For schools that gain funding under the new formula, additional funding is capped at 3% per pupil (as per the National Funding Formula).

·         For schools that lose funding under the new formula, a minimum funding guarantee of an additional 0.2% per pupil increase is applied (this is the maximum affordable).

This decision is not subject to call in as:

·      the item is deemed as an Urgent Key Decision as set out in Rule 5.4.7 of the Constitution.

therefore it will be implemented immediately.

(Councillor Jeanette Clifford declared a personal interest in Agenda Item 6 by virtue of the fact that she was a School Governor at St Bartholomew’s School. As her interest was personal and not prejudicial or a disclosable pecuniary interest, she determined to remain to take part in the debate and vote on the matter.)

The Executive considered a report (Agenda Item 6) which sought agreement of the school funding formula for primary and secondary schools for 2018/19. Councillor Lynne Doherty explained that this was an annual requirement which determined how the Schools Block Dedicated Schools Grant (DSG) would be distributed.

The report proposed moving schools onto the National Funding Formula. This followed consultation held with the Schools’ Forum and all schools which confirmed the preference to move to the National Funding Formula factors and rates.

The National Funding Formula contained additional funds which would ensure that no schools would lose funding. Overall, there was £1.7m of extra funding going into schools (£1.3m when considered on a like for like basis – i.e. assuming pupil numbers remained the same). Per pupil funding rates would also increase by £72 in primary schools and £21 in secondary schools. Based on this Formula, the total Schools Block DSG for 2018/19 would be £97.905m.

Councillor Doherty proposed acceptance of the recommendations.

Councillor Lee Dillon noted, from the report’s conclusions, that the gains for most schools were not significant and many would still have difficulty in balancing their individual budgets moving forward. He therefore queried what action the Council would be taking to support schools in difficulty. Councillor Doherty explained that support would continue to be provided by the Schools’ Finance Team. She also referred to a report which had been produced which outlined the measures that had been put in place to help schools in deficit entitled ‘Strategic Planning for Schools in Deficit’. She offered to share this with Councillor Dillon.

RESOLVED that:

·         The school formula for 2018/19 is set as per the National Funding Formula factors and funding rates set out in paragraph 6.

·         For schools that gain funding under the new formula, additional funding is capped at 3% per pupil (as per the National Funding Formula).

·         For schools that lose funding under the new formula, a minimum funding guarantee of an additional 0.2% per pupil increase is applied (this is the maximum affordable).

Other options considered: The school formula can currently be set by using any of the formulae factors allowed for within the Schools and Early Years Finance Regulations, and at any funding rate subject to certain restrictions and affordability. These are set out in Annex B of Appendix C. This will apply for the next two years, after which every school will need to be funding according to the National Funding Formula. The only other option considered for 2018/19 was to set funding rates half way between the current rates and the national rates. However, more schools benefited from moving straight onto the national rates.