To recommend the Herefordshire schools budget for 2018/19 to the cabinet member for young people and children's wellbeing for approval

Members were asked to consider both the original report and the supplementary report which contained information and additional or amended recommendations arising from the meeting of the budget working group on 5 January 2018.

The schools finance manager (SFM) introduced the report. He noted that:

·         the proposed funding values were the same as the draft that members had considered at the October 2017 meeting and closely reflected the consultation which had taken place with schools in the autumn term;

·         the increase in the schools block was 1% compared to 2017/18, this was disappointing but in line with expectations;

·         figures set out in the report showed that on a per pupil basis Herefordshire schools were better funded than those in statistical neighbour authorities, it was noted that comparisons to urban authorities were less favourable;

·         the minimum funding guarantee (MFG) was proposed to be set at 0.5% for 2018/19 in order to pass through to all schools the government’s 0.5% increase per pupil, a further 0.5% increase was expected for 2019/20;

·         the proposed funding values achieved full implementation of the national funding formula a year earlier than required by the DfE;

·         proposals for de-delegation were generally in line with those for previous years with a reduction in the cost to primary schools of trade union facilities and the removal of the staff sickness absence scheme;

·         there was a low response rate to the autumn consultation, in the past this had been taken to mean that proposals were generally acceptable to schools;

·         responses in relation to the staff sickness absence scheme were mixed, the recommendation of the budget working group was that all schools should buy cover directly from the market, the council was working with its broker and hoped to be able to recommend policies that it felt were fair and offered the level of cover required;

·         there was no change to the formula for the early years block and the pass through rate for Herefordshire was well above the minimum set by the DfE;

·         there had been a small increase in the central school services block and this was proposed to be used to support further development of the early years NEF payment system and the online payroll system.

The SFM then spoke on the matter of the high needs block, the key points being:

·         the forum had previously been made aware of the projected overspend in the high needs block for 2017/18 of around £300k;

·         there was a recognised need to take action to bring expenditure in line with available funding;

·         a package of measures would be discussed at the meeting of the budget working group in February 2018 and recommendations would be brought to the forum in March;

·         due to improvements in attainment in Herefordshire schools the number of pupils qualifying for low prior attainment funding was lower than expected, resulting in a net surplus in the schools block of £324k, this was an unexpected windfall and should be seen as a one-off;

·         options for the use of the  ...  view the full minutes text for item 18