GCC Budget 2007/08Children & Young People

Agenda

19.00 Welcome and Introductions (by Chair)

19.10 Budget Presentation

19.50 Open Forum

20.50 Closing Remarks (by Chair)

21.00 Close

Budget Presentation

• Overall Funding Context• Council Priorities• Proposed GCC Budget 2007/08• Dedicated Schools Grant 2007/08• Impact on Budgets• Funding Outlook• Schools’ Financial Management• Consultation• Discussion Items

Overall Funding Context #1

Schools Other

ServicesGovernment Formula Grant x Council Tax x Dedicated Schools Grant xOther Government Grants Local Fees/Charges

Constraints on funding influence decision making (choices, priorities, investment, disinvestment)

• Proposals made in the context of DSG funding regime and 2nd year of 2-year funding settlement

• Govt’s Council Tax Capping Regime continues• Local Council Tax rise lower than 06/07• Not meeting all service needs, BUT• Focus on priorities• Disinvest to reinvest (some major service reshaping)

Overall Funding Context #2

Council PrioritiesSupporting communities Ensuring every child thrives and vulnerable people and reaches their potential

Making transport work

Managing our Making ourenvironment communities saferand economy

Driving Excellence (and maintaining low council tax)

Every Child and Young Person thrives and reaches their potential

 

Outcome Priorities

Be Healthy

Improve emotional health and well-being

Stay Safe

Enhance personal

safety

Co-ordinate services

for children

and young people

with disabilities

Enjoy and Achieve

Improve attainment of the most vulnerable

groups

Expand and

co-ordinate support for

young families

Make a positive

contribution

Reducing levels of

offending

Achieve economic well-being

Improve

choices for 14-19 year

olds

Proposed GCC Budget 2007/08 #1

Service Analysis £M %

Children & Young People 61.6 +3.3

Community & Adult Care 114.1 +4.2

Environment 49.0 +4.7 CESU 21.8 +2.4 Business Management 20.0

+0.5 Corporate and Technical Budgets 37.5 -1.5 Additional Police Officers 0.9

+148.0 Proposed Budget 2007/08 308.7 +3.1

Proposed GCC Budget 2007/08 #2

CYP Budget £M

Base Budget 2006/07 59.7

Inflation 1.8

Increased Spending 2.8

Efficiencies / Other Savings -2.7

Budget 2007/08 61.6 +3.3%

DSG (Schools) Budget 294.2 +5.1%

Proposed GCC Budget 2007/08 #3

2007/08 CYP Provisional Funding

DSG Funded

83%

Council Tax

Funded17%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2007/08 Funding Increases

Council TaxFunded

DSG Funded

Proposed GCC Budget 2007/08 #4• Increased Spending / Investments on CYP Budget

£MTransport +1.5

Legal fees +0.3 In-house Social Care provision +0.4 CYPwD / enhanced OT +0.2

Youth Housing Support Workers +0.1 VCS Grants +0.1

Other +0.2Total +2.8

Proposed GCC Budget 2007/08 #5• Efficiencies / Other Savings on CYP Budget

£M

Agency Care Placements -1.0

School Pensions -0.7

Advisers staff reorganisation -0.2

Youth Housing Support contract -0.1

VCS Grants -0.1

Efficiencies -0.4

Other -0.2

Total -2.7

DSG Budget 2007/08 #1Dedicated Schools Grant (DSG):• 07/08 Funding unit increase 6.4% (in line with

average)• Guaranteed Funding Unit (GFU) £3,573.84 / pupil• Glos ranked 138th (previously 137th) out of 149• “Shrinking pot” On Jan 06 pupils, 07/08 DSG worth £17.9M On Jan 07 est., 07/08 DSG worth £14.2M (£280M to £294M) i.e. pupil reduction worth £3.7M• Final 07/08 DSG = 07/08 GFU x Jan ’07 pupils

DSG Budget 2007/08 #2

£M

2007/08 DSG Increase (estimated) 14.2 +5.1%

Proposed Allocation

• Schools Commitments (estimated) +11.3

• Other Commitments (estimated) +0.2

• Balance for New Investment (estimated) +2.7

DSG Budget 2007/08 #3 Schools Other Total

£M £M £M

• MFGs / Govt. priorities +9.7

• Demographic reductions in schools -2.0

• Headroom 2006/07 +1.2

• Statementing / rates / threshold etc +0.9

• Inflation / LG Super +0.9

• Overs(+)/Unders(-) 2006/07 +1.5 -0.7

• Total +11.3 +0.2 +11.5

Balance for New Investment (including headroom) +2.7

but Post-16 funding mismatch (MFG cost > LSC funding)

DSG Budget 2007/08 #4 £000

NEG –334 CC / EY +334 0Recoupment saving –150 Special Schools +150 0Carbon Emissions (Invest-to-Save Fund) +150Race Equality & Diversity Service +227Targeted School Improvement +100School Attendance +100Maintenance of School Buildings +500Children & Young People with Disabilities +250Development of SEN Provision in Gloucestershire +450Potential over-estimate of DSG (pupil numbers) +90Other +75

+ Schools’ Headroom

DSG Budget 2007/08 #5Headroom:• Overall resource dependent upon agreed priorities for

new investment• Schools Forum agreed to share any headroom pro-rata

to overall budgets (Prim 47%, Sec 47%, Spec 6%)• Distribution to individual schools using needs-led

formulae• Greater number of schools receive a share each year,

so average sum per school reduces• Any headroom built into next year’s budget permanently

• SSG increase by Chancellor: Prim £6.6M to £7.9M +18.7% (£12k + £114/pupil) Sec £5.0M to £5.7M +14.5% (£12k + £121/pupil) Spec £0.4M to £0.5M + 9.5% (£29k + £114 / pupil)

• Threshold Grant probable (3-year?) phasing of “snapshot” formulaic w.e.f. 2008/09

DSG Budget 2007/08 #6

Impact on Schools’ Budgets

• MFGs funding stability• Govt. priorities targeted funding• Full NLF delay locks in inequities• Falling pupils (Prim.) adds pressures• Local priorities agreed by Schools’ Forum

- NLF distribution- New investment in 07/08

• “Headroom” relieves pressure (some schools)• Balances “haves” and “have nots”

Impact on Local Authority Budgets

• Keep Council Tax low many cash limited budgets• Significant cost pressures (inflation,Transport “super

inflation”, LG Super)• Limited growth (but targeted to priorities)• Efficiency savings / budget cuts• Minimal –ve impact upon services wherever possible

Funding Outlook 2008/09 (National)

• Overall funding levels end to ‘generous’ funding era• CSR 2008 (2008/09 - 2010/11) in 2007 predictability• Ministerial commitment to “to listen” to ff4gs campaign

and discuss national funding More funding for Glos? Who knows?

• Resource allocations to LAs? potential turbulence• MFG continuation? definitely but likely decrease• Pupil numbers shrinking DSG (in real terms)

?

Funding Outlook (Local)

• Continuation of low Council Tax rises limited budgets!• Efficiencies ever more difficult to achieve service cuts?• Increased demands/commitments• Increased expectations?• Further review 2008/09 of Primary/Secondary Schools’

NLF (WFR, TLRs, ICT, 14-19 threshold)• Special Schools’ NLF draft model out for consultation

(implement in part wef 2008/09)

Schools’ Financial Management• DfES expectations VfM and FMSiS compliance

• FMSiS

- Secondary schools expected to comply Mar 07

- Prim/Spec compliance between Mar 08 & Mar 10• Governor’s Budget Plans

- used to identify schools “causing concern”, potential

staffing reductions (impact on pensions)

- sound financial planning (claw-back of balances)

- timely return necessary schools’ co-operation

essential

Consultation – Next Steps

• Information sharing meeting 10 Jan• Schools’ Forum sub-group 12 Jan• Schools’ Forum 16 Jan• CYP Scrutiny 17 Jan• Budget consultation responses (by) 19 Jan• Final budget to Cabinet 7 Feb• Formal Council budget-setting 21 Feb

• Schools’ Forum (“last-minute issues”) 6 Mar• Then final budgets issued to schools

Specific Issues for Discussion

• Overall County Council budget proposals

• Proposed new investment from DSG

• Any other issues of concern

Questions?

Council Tax Budget Proposals:http://www.gloucestershire.gov.uk/index.cfm?articleid=14668

Comments to County Council’s Consultation Team:http://www.gloucestershire.gov.uk/index.cfm?articleid=141 

Dedicated Schools Grant Budget Proposals:http://www.gloucestershire.gov.uk/index.cfm?articleid=8639

Comments to your Schools’ Forum governor representative