Agenda item

To consider a report by the Planning and Resources Manager (copy enclosed) which detailed the consultation proposals for the new Denbighshire School Funding Formula in mainstream and special schools.

(Appendix 2 to this item is confidential).

                                                                                                          10.10 a.m.

A copy of a report by the Planning and Resources Manager, which detailed the consultation proposals for the new Denbighshire School Funding Formula in mainstream and special schools, had been circulated with the papers for the meeting.

 

The Planning and Resources Manager introduced the report which detailed proposals for the new funding framework and outlined the potential areas of operational and financial risk.  Appendix 1, consultation document, had been issued to Schools on the 1^st October, 2012 outlining detailed proposals for a new funding framework for Denbighshire.  The most significant change related to the categorisation of funding allocations, the proposed new formula being based on the identification of the actual cost drivers within the schools which had been split across seven strategic activity elements.  The significance of pupil lead funding, under the heading curriculum, was highlighted.  Draft proposals were subject to change pending the outcomes from the consultation pending implementation in April, 2013.

 

A confidential document, Appendix 2, provided an initial risk analysis of all schools showing the movement in the budget and the current level of balances.  Consultation meetings would be held with each school to discuss the implications within their own delegated budget, and the analysis remained subjective until the full detailed discussions had taken place.  It was explained that any issues raised must be submitted through the formal consultation process.  A management fact sheet, Appendix 3, provided a comparison between the old and new formulas, and provided support for Members in addressing some of the key issues if they arose.

 

Concern was expressed by the Co-opted Members that they had not received copies of Appendix 2.  The Planning and Resources Manager explained that Appendix 2 was a working document based on predictions which were subject to change.  It was agreed that an updated version of Appendix 2 be circulated to Co-opted Members.

 

The outcome from the review would change the distribution of school funding to allow schools to think differently about how they managed their delegated funding, and this would support the priority of Modernising Education.  There would be no additional costs as the Funding Formula would provide a means of distributing the total school quantum to each individual school. This would remain the same regardless of the outcome of the review but may result in funding being realigned differently across schools.  Consultation had been undertaken with Head Teachers, Governors, Trade Unions, Education Officers and Elected Members.

 

The need to ensure funding was distributed fairly and equitable to all schools was emphasised.      It would be important to consider the wider issues regarding any schools lose of funding, as balances and expenditure plans would play a vital role in assessing whether or not the loss of funding would have an underlying impact on the delivery of education.

 

The following responses to questions and issues raised by Members were provided by the officers:-

 

- Concerns were raised regarding the number of schools indicated as red in the funding formula.  The main purpose of the funding formula review had been to realign funding in relation to need requirements.  It was confirmed that red did not necessarily indicate a high risk area and in some instances included schools currently receiving officer assistance.    

 

- With regard to the differential between Primary and High school funding allocations.  Sector funded had been examined on a national basis and appeared to be balanced and in line with the national approach.  The Planning and Resources Manager confirmed that she would liaise with the respective Education Officers to obtain an educational perspective of the issues and concerns raised.

 

- In reply to concern regarding the number of categories of schools, it was explained

that following strong robust feedback received following consultation it was anticipated that the Welsh category would change significantly with funding being based on assessments rather than categories.

 

- Reference was made regarding the allocation of Deprivation Grants.  Confirmation was provided that consideration had been afforded to Local Authorities being funded separately by specific grant for the pupil deprivation grant.  Members were informed that the free school meals indicator had been included to meet the requirements of the school funding regulation which stipulated the need for a driver for social deprivation.  Details of the match funding provision were outlined to the Committee.

 

- Members were informed that the class size regulation related to schools which had already accessed funding and new schools entering the system.  The criteria pertaining to schools affected by the June time limit were outlined for Members.

 

- Dr D. Marjoram referred to the Foundation Phase and the Welsh Government requirement for ratio of support to pupils which had resulted in a reduction in support for Special Schools.  It was explained that there had been an indication that the previous funding criteria had appeared favourable.  However, issues raised in respect of this matter would receive further consideration.  With regard to the Banding of Special Schools, it was confirmed the pupil amount would be the balancing item.  However, both Special Schools would be presenting alternative ways of addressing the issue.  An outline of the difficulties in obtaining and distributing funding provision was highlighted by the Planning and Resources Manager who confirmed that a baseline budget set would be produced to indicate the funding required to deliver statutory functions.  She also indicated that first language Welsh pupils, and charges for out of County pupils, would not be affected.

 

- Details relating to funding allocations in respect of federated and amalgamated schools were provided and the Planning and Resources Manager explained that were treated separately and could reserve more funding than amalgamated schools under the formula.

 

- Councillor A. Roberts expressed concern about possible imbalances of funding arrangements on Welsh Medium schools.  It was explained that the figures provided comparisons between the old and new formula and did not give an indication of the actual budget or expenditure costs within the respective schools.  Class size funding had been encompassed in a separate policy which afforded schools the opportunity to apply for funding against the scheme outside of the formula.  The Planning and Resources Manager confirmed that changes in the Welsh Medium Schools were not related to the changes to the Welsh funding.  However, she provided confirmation that the Welsh aspect of funding would be assessed on outcomes at the end of the respective Key Stage and not based on the categories of the Schools.

 

- The Planning and Resources Manager provided confirmation that school funding allocations would be protected.  She referred to the Council’s policy on the proceeds from the sale of surplus assets, such as Rhuallt School, being allocated to the corporate priorities and any funding requirements be applied for on a priority basis.

 

- It was explained that the figures provided had been based on data from the previous year.  It was confirmed that data was not yet available to produce next years budget figures.  However, they would include predicted role numbers.

 

- In reply to a question from Councillor M.Ll. Davies regarding the robust nature of the resolution in the report, it was confirmed that the document was in draft and subject to consultation.  The Head of Customers and Education Support referred to the tight timescales relating to the circulation of budgets to schools and confirmed that a progress report could be submitted to the November, 2012 meeting of the Scrutiny Committee.

 

Following further discussion, it was:-

 

RESOLVED – that Performance Scrutiny Committee:-

 

(a)   receives the report and confirms recognition of the implications of the changes to the Formula for the funding framework.

(b)   approves the methodology against each element of the Formula Review, and

(c)   agrees that the officers undertake a review of the funding framework and submit a further progress report to the November, 2012 meeting of the Performance Scrutiny Committee.