BUDGET

1
BUDGET MTFP2006-09
KEITH ABBOTT ASSISTANT DIRECTOR FINANCE
CORPORATE SERVICES NOVEMBER 2005
2
BUDGET

• KCC overall position
• Timetable
• Dedicated schools grant (DSG)
• 3 year budgets
• LEA budgets (outside DSG)
• Pay grants
• Standards Fund
• Post 16 funding
• What happens next?

3
KCC OVERALL POSITION

• Looking very tight over next 3 years
• One-off support from Government in 2005-06 will
  not be repeated
• Pressure on Council tax from all directions
• Continuing impact of national changes
• Kent remains a floor authority

4
TIMETABLE

• Still waiting for outcome to various
  summer/early autumn DfES consultations
• National settlement delayed - now expected in
  w/c 5 December
• DfES information may not be available until w/c
  12 December - critical for us as that is when
  we get announcements on dedicated schools
  grant, standards fund and minimum funding
  guarantee
• Following discussion with Funding Forum no
  consultation with schools until early January.
  Models of options will be available - on
  website as in previous years but not until
  January
• Details of what we know already are on Clusterweb

5
DEDICATED SCHOOLS GRANTS (I)

• 100 DfES funded
• Covers schools, early years and other LEA
  services such as PRUs, Ind/non-maintained
  provision (includes some services that are in
  clusters)
• Minimum 5 per pupil increase for LEAs
• 6 increase nationally
• The national headroom may well be directed by
  DfES - eg personalised learning
• Minimum funding guarantee remains in place
• Proportionate increase rules also remain in
  place

6
DEDICATED SCHOOLS GRANTS (II)

• Budgets proposed to be based on single pupil
  count (Jan PLASC)
• DSG not finalised by DfES until June though
  budgets must go out in March
• 5 minimum increase would give schools an extra
  23.2m and LEA (inc. Early years) 5.9m
• We know this creates significant pressure on LEA
  elements
• We do not know what this will mean for schools
  as it will depends upon level at which MFG set,
  teachers pay award etc.

7
3 YEAR BUDGETS
8
LEA BUDGET (OUTSIDE DSG)

• Considerable pressures
• Home to school transport
• Children Act
• Sure Start/Childrens Centres
• CRB related costs
• All pressures to be funded within existing cash
  limits . . .

9
PAY GRANTS

• Transferred to DSG from April 06
• Post-16 element given to LSC (but they are then
  giving it back to us!)
• LEA to allocate but the post-16 element must be
  identified separately
• Will be within MFG so baseline needs adjusting
• Consulting with Funding Forum on means of
  allocation/distribution and that will form part
  of January consultation

10
STANDARDS FUND

• A number of separate categories to be merged into
  School Development Grant (SDG)
• Schools will get the same under SDG as under
  previous grants with per pupil increase
• LIG ceases
• ICT grant transferred to capital and SDG
• School Standards Grant to be calculated on new
  formula with a guarantee for individual schools

11
POST-16 FUNDING

• LSC changes set out in Priorities for Success
  School 6th Form Funding 2006/07 and 2007/08
  published in October
• Funding rates will increase in line with MFG for
  secondary schools
• Allocations to be based on single pupil count
  (September)
• Real terms guarantee (RTG) to be phased out and
  will not exist in 2008/09
• Qualifications Cap

12
POST-16 FUNDING (Contd)

• Impact of phasing out RTG will cause problems
  for some schools so LSC introducing a minimum
  funding floor (MFF) for 2006/07 and 2007/08 to
  ensure no fall in cash terms for average per
  pupil 6th Form funding
• Ministers also agreed that MFG should apply to
  LSC allocations - considerable shift by DfES .
  . .

13
WHAT HAPPENS NEXT?

• Latest plan agreed with Funding Forum was
• Settlement in late November
• Discussion with DFFG on 2nd December
• Discussion with Central Costs and Standards Fund
  Group on 5 December
• Discussion with Forum on 15 December to finalise
  consultation
• Work up models/options
• Consult in early January

14
WHAT HAPPENS NEXT? (contd)

• But now
• We just wait on DfES and then salvage as much of
  our plan as we can
• If we do not get DfES information until w/c 12
  December then may struggle to sort everything
  for Forum on15 December - and then we are
  looking at January for Forum meeting