1. School Forum 14 December 2010

2. Budget 2011/12 Schools Funding announcement Schools budget 2010/11 Budget issues –Mainstreaming grants –Equal pay –Redundancy and retirement costs Business for January Forum

3. School Funding announcement Headlines from last night’s settlement – posted at 6pm! Hampshire DSG settlement One year Mainstreaming MFG Pupil premium Academy funding and LACSEG recoupment Early years

4. School funding announcement One year settlement for 2011/12 only Mainstreaming grants including diploma formula grant (not previously highlighted as in base line) Flat cash settlement …. –For all authorities –Hampshire 2010/11 Grants per pupil £515.74 2010/11 DSG per pupil £4,131.89 2011/12 GUF per pupil £4,647.63 –With cash floor to protect those with fast falling pupil numbers

5. School Funding announcement Minimum Funding Guarantee –No school with budget cut of more than 1.5% per pupil –In most areas LAs should be able to offer greater protection and in consultation with Schools Forums set a higher guarantee –Pupil premium not included in calculation of guarantee and must be added after guarantee applied

6. Pupil premium April 2011 introduction Grant based on Jan 2011 census, children eligible for FSM years R to 11 –“Ever free school meals” aimed for 2012/13 £430 per deprived child flat rate nationally for 2011/12 Deprived pupils in –Maintained schools and academies, non maintained settings publically funded –Special schools, independent schools, PRUs –Children looked after for more than six months –Premium for service children of £200

7. Pupil premium Hold schools accountable for how they use premium –New measures in performance tables that capture achievement if pupils covered by premium –Require schools to publish on line how they have used the premium Ensure parents and others aware of progress and attainment and concentrate schools’ minds on using it appropriately

8. Pupil premium estimate from 2010/11data FSM DataPupil Premium £ Primary9,7004,171,000 Secondary5,3002,279,000 Special546234,780 Service children5,1661,033,200 Children Looked After665285,950 Total21,3778,003,930

9. Academy funding 2011/12 Budget lines calculated net of income not gross LA budgets reduce this year, LACSEG will reduce accordingly Central school improvement grants end so excluded from calculations for this year –Removes current LACSEG of £312 per pupil CLG topslice from LAs will start for 2011/12, and will not be targeted at individual LAs but top sliced nationally –Less turbulence, but could be disproportionate impact Updated ready reckoner promised imminently

10. Early Years settlement No pupil premium Standards Funds for EFE £7.752m in 2010/11 included in cash baseline –Assume therefore it is mainstreamed, but through different approach to schools grants More work required Will continue with arrangement where LAs with less than 90% of 3yo pop’n take up free entitlement funded as though they did –No longer a benefit for us

11. To do … Much work to do to fully unpack settlement Track through mainstreamed grants LACSEG reductions to LA grant Removal of Dual registration for excluded pupils Standards fund for EFE transfer

12. Schools Budget 2010/11 Cash Limit £000 Period 7 Variance £000 % LMS Contingency9,817-1,693-17.2 Payments for 3 and 4 year olds39,566+651+1.6 Statemented Pupils10,087-945-9.4 Inter Authority Recoupment630+212+33.7 Out of County Special Schools9,534-349-3.7 Other (primarily directly allocated to Schools)769,598-509-0.1 Total839,232-2,633-0.3

13. Schools Budget 2011/12 Base budget –Pupil numbers –Cash settlement – no inflation Headroom from 2010/11 position –Risk appetite on current underspends given one off headroom Current pressures

14. Pupil numbers 2010/11 DSG position Change to 2011/12 Change 11/12 to 12/13 Change 12/13 to 13/14 Early Years (FTE)8,7800132134 Reception13,89047-254209 Primary schools years 1 to 680,002-76793653 Secondary to year 1168,365- 223- 987-1,031 Special schools and other aspects3,372000 Totals174,409-252-316-35

15. Pupil numbers – net cost pressure 2011/12 £m 2012/13 £m 2013/14 £m DSG forecast reduction1.0411.3060.145 Changes to ISB and base budget 0.6171.0610.386 Net pressure/ (headroom)0.4240.245(0.241)

16. Current 2011/12 headroom Change To 2011/122011/12 to 2012/13 Para£000 Carry forward already agreed (one-off)3.34,660-4,660 Additional 2010/11 underspend2.12,600-2,600 Statemented Pupils3.301000 Business Rates3.304430 FMSiS3.31500 Total7,853-7,260 £7.853m in 2011/12 and an ongoing £597,000 in 2012/13

17. Current 2011/12 pressures Change To 2011/12 to 2012/13 Para£000 DSG – Pupil numbers3.20424245 Equal Pay3.353,1001,900 Carbon Tax3.371,000-1,000 Schools-related premature retirement costs etc3.9400 Admissions, employer’s obligations and insurance3.40443 Independent Investigations3.4510 Total5,3771,145

18. Current 2011/12 headroom Significant one off funding –Consider risk appetite for budget assumptions around on going underspends Eg:- SEN statementing and out county placements –Consider one off funding for costs of restructuring and redundancy in schools Potential MFG issues

19. Budg et issues – mainstreaming grants flat cash settlement for the new schools budget grants are not currently expected to be materially reduced/topsliced before being added into the Dedicated Schools Grant. receive the total value of 2010/11 allocations, adjusted for : –changes in overall pupil numbers »the removal of funds allocated on the basis of sixth form pupil numbers –the exclusion of funds relating to known Academies –any clearly identified one off items. Settlement added diploma grant funding £811,000 not previously referenced

20. Budg et issues – mainstreaming grants 2010/11 Grants £'000 School Development Grant (SDG) 21,697 School Standards Grant (SSG) 28,004 Schools Standard Grant Personalisation (SSG-P) 6,482 Specialist School Status 9,828 School Lunch Grant 1,692 Ethnic Minority Achievement Grant (EMAG) 494 One to One Tuition 5,614 Extended Schools 6,874 National Strategies 7,152 Total 87,837

21. Budg et issues – mainstreaming grants Schools Development Grant combination of per pupil and flat rate produces a reasonable fit, to Support Staff element –Advanced Skills Teachers – retain current approach –Excellence in Cities grant - £1.41m over 16 schools (1 special, 2 secondary and 13 primary) –Leadership Incentive Grant (LIG) - £611,000 at 5 secondary schools –Model long term approach using some existing low attainment and deprivation factors and balance with pupil premium

22. Budg et issues – mainstreaming grants School Standards Grant (SSG and SSG-P) –combination of flat rate and per pupil will broadly fit –SSG-P uses frozen data from 2006 –bring more detail to the January meeting.

23. Budg et issues – mainstreaming grants Specialist School Funding –Four schools get part year funding in 2010/11, propose finding £116,000 in 2011/12 to give full year effect –Two secondary schools receive no funding, some have second and third specialism. Initially propose the allocations be retained with those schools currently receiving them, seeking to move to move to standard formula over three year period –Quirk with 1,001st to the 1,200th pupil not recognised for funding purposes. Cost of a simplification so all pupils above the 1,000th were recognised would be £0.784m

24. Budg et issues – mainstreaming grants School lunch grant –retain current formula and include it as part of the school meals management partnership line Ethnic Minority Achievement Grant –Schools Forum previously agreed to hold centrally as “needs are real, dispersed and variable so schools are unable to build individual school capacity to meet the needs” –Propose to continue

25. Budg et issues – mainstreaming grants Potential headroom and flexibility £19.64m –Extended schools funding –National Strategies –One to one tuition None are currently delegated to individual schools All previously expected to cease Consider first for any Schools Budget flexibility and to offset any top slicing before the grants are added into DSG

26. Budget issues – Equal Pay Budget strategy for funding Option B –Seek borrowing of £80m, revenue funding for costs of borrowing £5.5m pa –2011/12 funds set aside £2.4m –£5.5 m revenue cost of borrowing in 2011/12 requires further £3.1m (ongoing provision) –2012/13 further £1.9m ongoing provision

27. Budget issues – Equal Pay Effect top slice equally or differentiate? –By school type – aided and foundation –By school phase Aided schools –currently only one claim, but more could be generated if it is successful –Potential insurance cover for aided schools –Aided schools borrowing from school balances loan scheme Schools Forum 2008 decision set aside £0.5 m per annum was collective with all schools impacted Provision in budget shares for the costs of Pay and Benefits was shared between all schools

28. Budget issues – Equal Pay All schools except Aided All schools except Aided and schools Foundation in 2001 Average % smoothed over all 0.91%0.98%1.08% By phase Primary 1.14% Secondary 0.58% Special 1.54%.

29. Budget issues - Redundancy and retirement Net cost met by the local authority budget in 2009/10 was £2.810m –Continuing payments from previous years met centrally £2.455m –New cases – Share charged to individual schools £0.280m –New cases – Share met centrally £0.355m Propose moving solely the budget provision for new commitments of £0.4m to the Schools Budget and then meeting all the resulting future costs that are funded centrally from that budget Pressure of £0.4 m a year for Schools Budget budget proposals for 2011/12

30. HCC position Current budget guidelines are for 8% cash limit reductions for services for 2011/12 and 2012/13 with activity pressures to be absorbed Settlement headlines looking consistent with that planning scenario given front loading of cuts over 4 years

31. January Forum business School group pressures and issues –Presentations Full analysis of Hampshire school funding settlement Modelling of –Absorbed inflation impacts? –mainstreaming grant proposals –Teachers pay reform grant –SEN formula changes Formal consideration of Equal Pay funding strategy Consideration of MFG/ transitional protection March Forum for central expenditure limit and January 2011pupil number changes