The Director of Children’s Services presented a report which recommended the approval of the Schools Budget for 2010-11.  He explained that it was the third year of a national three-year funding period for schools (2008-11).  In 2008 decisions had been taken about levels of funding based on the Government’s stated priorities. The budget had been presented to Wirral’s Schools Forum on 20 January 2010.  The report and the resolution from the Forum were attached as Appendices 1 and 2 to the report.

On 14 January 2010, the Cabinet had received a report that had outlined that energy costs in schools would reduce in 2010-11 by £1.3m following the renewal of contracts.  This would be reflected in the budgets set by schools.  The recommendation in the report included a request that the Schools Forum consider a programme of automatic remote reading meter installations in schools, funded from the Schools Budget, in order to help deliver the energy saving scheme.  This had been outlined to the Schools Forum who consequently agreed to receive a more detailed report at its next meeting in June 2010.

The Portfolio Holder for Children’s Services and Lifelong Learning highlighted the fact that the Government had again stated that it expected to see Council Tax increases at a 16-year low and this had been re-affirmed in the announcement of the Local Government Finance Settlement.  Capping action had already been initiated against three Police Authorities to limit their increases to approximately 3%.

He went on to thank the Schools Forum for its contribution and endorsed its proposals set out within the proposed Schools Budget.

Resolved – That

(1)  the Cabinet welcomes the increase in funding from Government through Dedicated Schools Grant of £5.9m for 2010/11.  Over the funding period 2008-11 this amounts to over £14.4m more for Wirral Schools;

(2)  the Cabinet recommends to Council that the Schools’ Budget for 2010-11 be set at the level of the adjusted Dedicated Schools Grant which is £193,995,400.  This equates to an increase of 4.4% per pupil;

(3)  it is acknowledged that these increases are above the current CPI rate of inflation (3.5%) and that they compare favourably with the average national increases in funding per pupil of 4.3%;

(4)  the Cabinet recognises that this budget will help the Council to achieve one of the strategic objectives in the Corporate Plan which is to raise the aspirations of young people.  This funding will also contribute towards the four themes in the Children and Young People’s Plan:

·  Reducing health inequalities for children and young people

·  Intervening and supporting children earlier and in their communities

·  Reducing the gap in outcomes for children

·  Improving value for money in services

(5)  the Cabinet notes that the increase in funding per pupil of 4.4% in 2010/11 includes the following spending assessment by the Government: Minimum Funding Guarantee (2.1%) and Government priorities (1.4%);

(6)  the Cabinet notes that the Government has set the Minimum Funding Guarantee at 2.1% for the period 2008-2011.  This is 1% below the assessment of average cost pressures and assumes an efficiency gain in schools, as part of national public sector efficiency requirements;

(7)  the projected budget of 2010-2011 includes the following items (for detail see the Appendix of the Director’s report):

Inflation:

Provision is included for teachers pay at 2.3%, other pay at 1% and income at 3%.  There is no provision for price inflation.

Headroom:

Headroom is the difference between the DSG and the budget required to continue funding schools at their current level, after allowing for inflation, unavoidable cost  pressures and the Minimum Funding Guarantee.  Cabinet notes the decisions taken previously about Headroom.  In 2010/11 this is allocated as follows:

Deprivation funding to “narrow the gap”  £3,666,000

Increase in Statement value  £170,000

Other Specific Grants

Specific grants have been included in the budget and are detailed in the table below:

Area Based Grant

The following Area Based Grants are also included in the Schools Budget::

Early Years

The number of children in Early Years settings has increased and Cabinet agrees to allocate growth of £40,000 to meet this requirement.

  Special Educational Needs (SEN)

  There is agreed growth to increase the unit value of statements (£170,000) and to restore the previous cut to the SEN Plan (£150,000). Other pressures in this area however have been contained within the overall SEN provision.

  Energy reductions

  School energy savings resulting from renegotiated contracts are estimated to be £1.3m in 2010/11. Discussions will take place with the Schools Forum to develop a programme of installing Automatic Energy Readers, this will help to deliver further benefits for schools.

Other Budget Changes

  The Cabinet agrees to growth in the budget for Special Staff costs  £85,000, Schools Contingency £56,400, a contribution to the Local Safeguarding Children’s Board £24,000 and notes the overall reduction in rates and insurances costs of £48,000.

(8)  Changes in Special School Places

  The Observatory School places for Secondary age pupils with social, emotional and behavioural difficulties (SEBD) will increase in 2010-11 from 46 to 50 as previously agreed.  This is part of the successful strategy to reduce the number of placements in out of borough schools.

Claremount places will further reduce from 197 to 189 as part of the planned change to reduce MLD places and increase ASD;

(9)  the Schools Budget reflects the advice and recommendations of the Schools Forum from its meeting on 20^th January 2010; and

(10)  the Cabinet notes the full details of the budget breakdown and recommendations contained within the report and appendices of the Director of Children's Services which have been presented to this meeting.

(11)  the Cabinet therefore endorses the Schools Budget for 2010-11 and recommends it to the Council for approval; and

(12)  recommends that the £425,800 in unallocated DSG is held in Schools Specific Contingency and carried forward to the next funding period.