To receive a report on the meeting of the Budget Working Group.

The Forum considered a report from the Budget Working Group (BWG) concerning the National Schools Funding Formula.

The Chairman of the Budget Working Group reported that the BWG had considered a discussion paper designed to form the basis of a consultation paper for Herefordshire Schools on the local application of the National Schools Funding Formula, recognising that there were aspects where local choices could be made.  The agenda report set out a number of proposals by the BWG together with commentary on the rationale for the resultant recommendations.  She also commented that the recent DfE guidance (see previous minute) now substantiated many of the assumptions the BWG had needed to consider.

In the course of discussion the following principal points were noted:

·         Questioning the lack of data to enable an allocation for Looked After Children (LAC) the Senior Finance Manager responded that data would be available from the DfE via their budget modelling tool and no allocation was currently made within Herefordshire schools funding formula due to lack of data.  LAC funding would be reviewed when preparing the 2014/15 budget, having regard to the approach taken by other authorities.

·         The Forum noted the expected DfE target for achieving a year on year convergence to a national primary/secondary ratio anticipated to be 1:1.27.  However, no timetable had been set to achieve this.  This would have major implications for Herefordshire schools.  A member suggested that by the time the government had set the target it may be that Herefordshire was already within the target tolerances and to change the local ratio now could be premature.

·         It was confirmed that there would be winners and losers following changes to the Minimum Funding Guarantee (MFG) and that a capping mechanism would be in place.  While there would be some schools exceeding +/- 10% of their budget the vast majority of schools would be within +/ - 2%.

·         The Forum appreciated the need to understand the Special Education Need (SEN) side of the funding changes and the changes in SEN that will effect or clash with the funding formula.

·         Special school Heads had met to consider funding issues. While the numbers on roll varied this was an opportunity to get funding for SEN pupils at the right rate with moderated access needs.  A tariff rate system for SEN children was being considered.  It was anticipated that a protocol would be established and while this would have an effect on primary and secondary schools, the result should be a more transparent procedure.  The tariff funding would be linked to current budgets.

·         To ensure a joined up approach the Council was working with its partners to consider how Health and Social Care budgets could match with the funding formula to support children with additional needs.

·         Greater clarity had been given over 19-25 provision and the Council was using its new responsibilities and leading discussions with its partners, including through the locality team plans, to ensure users were involved with the process.

RESOLVED:

It be recommended to the Cabinet Member that the following principles be adopted in preparing the 2013/14 schools budget:

a)    No values be allocated to Looked After Children (LAC) in the first year of implementation, but that this aspect be reviewed in preparing the 2014/15 budget, having regard to the approach taken by other authorities;

b)    A composite per pupil value be used in secondary schools representing the average value for KS3 and KS4, subject to any guidance from the DfE;

c)    It be noted that the Forum will be requested to de-delegate the trade union funding;

d)    It was noted that the DfE intend to move towards national consistency for the primary/secondary ratio which implied a gradual move towards the average of 1:1.27 and Schools Forum requested that consideration be given to the implications of this in developing a strategy for school configuration in the County;

e)    That schools gaining funds should have the gains capped by the same percentage as used by the Minimum Funding Guarantee (MFG) in order to fund the costs of the MFG; and

f)     The proposed further discussions with Special School Headteachers and Pupil Referral Units be supported and a progress report be made to the Budget Working Group in July.