Management Information Sheet
2010 Budget Shares
Budget shares will be available on the web from 19th February pm.
This MI Sheet sets out the significant issues relating to the budget setting process for 2010/11.
Three areas are covered within this MI Sheet:
Factors covering the production of 2010/11 school budgets.
Budget guidance for setting 2011/12 and 2012/13 indicative budgets.
Proposals for additional support to schools during this period of financial challenge.
2010/11 Budget Production Issues
Since February 2008 when 2010/11 school forecast budgets were issued, a number of significant issues have arisen which have had to be reflected in the final 2010/11 school budgets which are now finalised.
These issues include:
The actual pupil numbers in the January 2010 Census are expected to be 1812 less than the original Department for Children, Schools and Families forecast. This results in available funding being £7.4 million lower than originally anticipated.
The level of funding supporting pupils in non-maintained special schools is £1.6m higher than anticipated due to the increase in the number of such placements.
The change in the methodology for distributing Pupil Specific SEN funding from September 2009 has resulted in a projected £4.5 million increase in funding. This followed a £3.5 million increase in Pupil Specific SEN funding in 2009/10. This additional funding is all allocated directly to schools.
The introduction of a Single Early Years Funding Formula is expected to be an additional call on the Schools Budget of £700,000, including transitional support to maintained nursery classes within primary phase schools.
The last significant issue is the creation of a £500,000 contingency held to support schools in financial difficulty because of failings in the governance and management of school resources. The protocol for allocating this funding has yet to be agreed with the Schools Forum, but one of the conditions will be that financial delegation has been withdrawn from the governing body.
The reduction in the overall funding level and the additional funding pressures have resulted in a number of changes being needed. The result of these changes are as follows:
In addition to these adjustments to school allocations, the funding for centrally provided services e.g. behaviour and attendance partnerships, pupil referral units, etc. will have a nil cash uplift in 2010/11. These budget will therefore remain at 2009/10 levels in cash terms.
These changes will enable all schools to receive the minimum guaranteed funding increase per pupil of 2.1%.
However, following discussion with the Schools Forum it is clear that both short and longer-term action must be taken to stem the increasing pressure in the Pupil Specific SEN budget. If current trends were allowed to persist there will be over expenditure of approximately £2.5 million for which no provision has currently been made. Attached to this letter is an appendix which shows what work is underway to both keep Pupil Specific SEN funding within the approved budget and to return in 2011/12 to 100% funding of funding allocations.
Budget Guidance for 2011/12 and 2012/13
The financial future is uncertain. The Government has yet to announce funding arrangements for the next three year funding period of 2011/14. It is however clear that this period will undoubtedly bring with it significant financial constraints.
For this reason all schools are being instructed to construct 2011/12 and 2012/13 budgets on the assumption of a 2.5% funding reduction in 2011/12 and a 5% funding reduction in 2012/13. This approach has again been discussed with and endorsed by the Schools Forum.
Period of Financial Challenges
The local authority recognises that the next few years will be a period of financial challenge and are in the process of engaging with partners during the next couple of months to identify how enhanced support can be provided to all schools to help minimise the impact of this period of financial constraint on teaching and learning of children and young people in Norfolk.
If you have any questions about matters set out within this letter please contact your Finance Support Officer in the first instance.
Paul Fisher
Assistant Director
Resources and Efficiency
Attached is Appendix 1
This MI Sheet sets out the significant issues relating to the budget setting process for 2010/11.
Three areas are covered within this MI Sheet:
Factors covering the production of 2010/11 school budgets.
Budget guidance for setting 2011/12 and 2012/13 indicative budgets.
Proposals for additional support to schools during this period of financial challenge.
2010/11 Budget Production Issues
Since February 2008 when 2010/11 school forecast budgets were issued, a number of significant issues have arisen which have had to be reflected in the final 2010/11 school budgets which are now finalised.
These issues include:
| actual pupil numbers being lower than the original forecast, resulting in a reduction in overall funding for Norfolk schools; | |
| the level of committed costs, in particular, in relation to pupils with special educational needs being significantly higher than anticipated; | |
| changes in policy, in particular the revised Pupil Specific SEN funding arrangements introduced in September 2009 and the introduction of the Single Early Years Funding Formula, which have increased financial commitments in 2010/11. | |
| The deterioration of financial governance and management in a number of schools requiring the retention of contingency funding. |
The actual pupil numbers in the January 2010 Census are expected to be 1812 less than the original Department for Children, Schools and Families forecast. This results in available funding being £7.4 million lower than originally anticipated.
The level of funding supporting pupils in non-maintained special schools is £1.6m higher than anticipated due to the increase in the number of such placements.
The change in the methodology for distributing Pupil Specific SEN funding from September 2009 has resulted in a projected £4.5 million increase in funding. This followed a £3.5 million increase in Pupil Specific SEN funding in 2009/10. This additional funding is all allocated directly to schools.
The introduction of a Single Early Years Funding Formula is expected to be an additional call on the Schools Budget of £700,000, including transitional support to maintained nursery classes within primary phase schools.
The last significant issue is the creation of a £500,000 contingency held to support schools in financial difficulty because of failings in the governance and management of school resources. The protocol for allocating this funding has yet to be agreed with the Schools Forum, but one of the conditions will be that financial delegation has been withdrawn from the governing body.
The reduction in the overall funding level and the additional funding pressures have resulted in a number of changes being needed. The result of these changes are as follows:
| The existing funding level for the support of schools in areas of social deprivation will be maintained with only limited growth in 2010/11. |
|
| a 9% reduction in the performance and threshold formula allocations. |
|
| £2.3million additional growth funding for personalisation - lower than in the forecast. |
|
| a pro-rata cut in all Pupil Specific SEN funding. The amount allocated for 2010/11 amounts to 90% of the previous unit of funding. |
In addition to these adjustments to school allocations, the funding for centrally provided services e.g. behaviour and attendance partnerships, pupil referral units, etc. will have a nil cash uplift in 2010/11. These budget will therefore remain at 2009/10 levels in cash terms.
These changes will enable all schools to receive the minimum guaranteed funding increase per pupil of 2.1%.
However, following discussion with the Schools Forum it is clear that both short and longer-term action must be taken to stem the increasing pressure in the Pupil Specific SEN budget. If current trends were allowed to persist there will be over expenditure of approximately £2.5 million for which no provision has currently been made. Attached to this letter is an appendix which shows what work is underway to both keep Pupil Specific SEN funding within the approved budget and to return in 2011/12 to 100% funding of funding allocations.
Budget Guidance for 2011/12 and 2012/13
The financial future is uncertain. The Government has yet to announce funding arrangements for the next three year funding period of 2011/14. It is however clear that this period will undoubtedly bring with it significant financial constraints.
For this reason all schools are being instructed to construct 2011/12 and 2012/13 budgets on the assumption of a 2.5% funding reduction in 2011/12 and a 5% funding reduction in 2012/13. This approach has again been discussed with and endorsed by the Schools Forum.
Period of Financial Challenges
The local authority recognises that the next few years will be a period of financial challenge and are in the process of engaging with partners during the next couple of months to identify how enhanced support can be provided to all schools to help minimise the impact of this period of financial constraint on teaching and learning of children and young people in Norfolk.
If you have any questions about matters set out within this letter please contact your Finance Support Officer in the first instance.
Paul Fisher
Assistant Director
Resources and Efficiency
Attached is Appendix 1