To consider a budget consultation paper which explains the budget options for the 2012/13 Dedicated Schools Grant and to seek the views of schools prior to developing initial budget proposals for School Forum’s consideration in December 2011.

(Mr P Box declared a personal interest)

The Forum considered a budget consultation paper explaining the budget options for the 2012/13 Dedicated Schools Grant and designed to seek the views of schools prior to developing initial budget proposals for the Forum’s consideration in December 2011.

The Schools Finance Manager presented the report.  He highlighted that the budget proposals provided for an overall cost increase of £900k in 2012/13.  It was proposed that this be funded by a package of reductions, similar to those for 2011/12, but largely through reductions in social deprivation funding which would be offset by increases in the pupil premium for 2012/13.  He commented on the timetable for the production of the budget including the proposal that if the grant settlement were significantly different from what was expected the Budget Working Group be authorised to commission a further consultation exercise.

In discussion the following principal points were made:

·         It was important that all schools responded to the consultation and members of the Forum were encouraged to advise colleagues accordingly.

·         The Budget Working Group had sought to put forward proposals that were fair to all schools.

·         Some concerns were expressed about the proposal that there should be no change to excellence cluster funding in the current year; the proposals for the delegated funding of band 3 and band 4 special educational needs funding; and the proposal relating to funding of Advanced Skills Teachers.  It was agreed that the consultation document afforded schools the opportunity to raise these concerns and the Forum would consider responses to the consultation exercise as a whole.

·         The Schools Finance Manager circulated a paper which benchmarked funding allocated to Private and Voluntary and Independent (PVI) settings compared with Gloucestershire and Worcestershire.  The benchmarking indicated that funding in Herefordshire was now on a par with that in Worcestershire and Gloucestershire.  Further information was being sought form Shropshire to finalise the comparison.  He reported that it was proposed there should be no budget reduction to PVI nursery funding, to amend the consultation document accordingly, and to report back to the Forum on Early Years Funding.  A concern was expressed that different settings calculated their costs in different ways and it was requested that the possibility of an independent cost analysis of settings should be explored.

·         That whilst principally a cost saving exercise it was essential that all budget increases were robustly challenged by the Schools Forum in accordance with principle set out in section 2.3 of the consultation document.  It was requested that if any unexpected budget pressures emerged these were brought to the attention of Members of the Forum at the earliest opportunity.

RESOLVED:

That (a)           it be agreed that no budget reduction in PVI nursery funding should be required in 2012/13, that the consultation paper should be amended accordingly and a report on PVI nursery funding should be made to the Forum in January 2012; with the possibility of an independent cost analysis of settings being explored;

(b)          the consultation paper as amended be approved for distribution to schools and PVI nurseries; and

(c)          the budget process and timeline as set out in the consultation paper be approved, i.e.

i           briefings for all schools, governors and PVIs in October – dates to be confirmed;

ii          individual response form to be returned by 11^th November

iii         Budget Working Group to meet on 25th November prior to Schools Forum to consider responses and prepare initial budget proposals

iv         Schools Forum to consider the response to the consultation;

v          Budget Working Group to meet on 14th December to consider whether any changes are required to the budget strategy following the DfE announcement of the school budget settlement in early/mid December and to determine whether a further short consultation with schools and PVIs is necessary; and  

vi        Schools Forum to consider the final budget proposals on 24th February 2012 and recommend final budget proposals to the Cabinet Member for Corporate Services and Education.