To undertake pre-Cabinet Scrutiny of the Schools Funding Formula Review prior to consultation.
Minutes:
Documents:
· Draft Cabinet Paper for 10th July 2018 ‘School Funding Formula Review’
Discussions:
· The paper is intended to get Cabinet approval to move to consultation
· Officers and a Review Group of 25 people are working on the proposed formula
· Views from across the education sector are being sought before consultation
· The formula will be based around four blocks:
o Core educational delivery and basic running costs
o Additional educational need and social deprivation
o Costs relating to site, facilities and establishment
o Other factors and adjustments
· The group considered it will be necessary to identify the minimum cost of running a school (block 1)
· The following risks are identified:
o Ensuring enough views sought before consultation
o A mismatch between the cost of running schools and the finance available
o Meeting timescales for consultation
· An experienced consultant is advising on the project (experience and appointment authority requested)
· The links between the Additional Learning Needs (ALN) Review and the Funding Formula Review were explored. It was confirmed that pupils with additional learning needs would be funded according to their need and that the ALN Review and Funding Formula Review were working closely together. Further detail would be provided to Members as part of an update on the ALN Transformation Programme as this project progresses
· The content of the fourth block (other factors and adjustments) was discussed. It was noted that this would address funding issues in connection with all-though schools and multi-site schools and that the report considered these as exceptions. However, the move towards federation would increase the number of schools that this would cover. Officers confirmed the intention was for the policy to be future proofed as far as possible in line with Welsh Government guidance.
· Scrutiny noted that previous reviews of the funding formula had resulted in schools of between 135 and 160 pupil numbers being penalised. Officers confirmed that there was insufficient information available at this stage of the process to identify if any particular sized school would be penalised by these changes but further discussions would be had by Schools Forum when further detail was available. The additional costs of Welsh education were raised and it was confirmed that the work identifying the costs of running a school would consider language provision to address the increase in Welsh medium education.
· Members noted that a majority of schools were forecasting a deficit position and queried that by calculating the cost of running a school and reviewing the funding formula may not necessarily improve this position. Officers confirmed that the Funding Formula Review and the actions taken to address the deficit positions of schools would run in parallel but holding schools to account for their financial management and setting a balanced budget is a statutory requirement which is monitored by Estyn. Scrutiny observed that the Schools Service had previously taken action to improve the forecast deficit position but the position had worsened. Officers assured Members that a more robust approach was being taken in line with the Scheme of Financing for Schools with additional financial surgeries (a total of 3 per year) being provided, with follow-up letters and action plans sent to all schools who have been met with and further work being undertaken with those schools forecasting the worst positions.
(Cllr Durrant left 14.30)
· Scrutiny noted that the timeframe for consultation was tight if a Funding Formula was to be worked up over the summer and queried if sufficient time was available. Officers assured the Committee that they were on track and that it was the intention to bring a report to Cabinet in November once consultation had closed to enable a phased introduction of the new Funding Formula for 2019/20.
· Members asked if there were other local authority funding formulas that could be used. It was confirmed that the consultant advising the project was a national expert but the consultation would allow for an appropriate approach to meet the needs of Powys.
· Scrutiny noted that much money was spent on consultations which could have been spent on providing frontline services. It was confirmed that consultation was a requirement when reviewing the Funding Formula.
· Members observed that one of the major issues was falling rolls. It was confirmed that the review would look at the minimum number of staff needed. Small schools needed to achieve economies of scale where possible for example by sharing costs.
· Scrutiny expressed concern that Powys has a comparatively high level of spending on education but low levels of delegation to schools. Officers noted that the decision for allocating the funding available was taken in the Schools Forum.
· Scrutiny noted that further information would be provided by way of a verbal report to Cabinet in July and that work on other blocks of the formula had begun and would be accelerated during July and August. Scrutiny felt that it had not been possible to provide scrutiny of the Formula Funding Review which was to go to Cabinet in July to ‘approve the overall design of a revised funding formula to schools’ and to ‘delegate the decision to proceed to full consultation with all schools to the Portfolio Holder for Learning and Welsh Language and Finance’.
The information available at this stage (ie pre-consultation) was insufficient for scrutiny to be able to make informed observations in this regard and Officers gave a formal commitment that the Funding Formula would be made available for Scrutiny prior to its consultation in September 2018.
Outcome
· That the following information be provided:
o A pen portrait of the consultant appointed to undertake the Formula Funding Review
o Links between the Funding Formula Review Group and ALN Transformation Board
· That Scrutiny receive a further report Funding Formula to include the verbal update being provided to Cabinet in July and the work proposed to be undertaken over the summer prior to the Portfolio Holder making a decision to proceed to consultation in September 2018 to give sufficient time for the Portfolio Holder to respond to any issues raised.
Supporting documents: