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Milton Keynes' Schools Forum MILTON KEYNES’ SCHOOLS FORUM Acorn House, 381 Midsummer Boulevard MINUTES OF THE MEETING HELD ON 1 DECEMBER 2016 AT 3.00 PM PRESENT: Primary School Representatives Lizzie Bancroft – Loughton Manor First School Christine Ryan – Cold Harbour C of E School Primary School Governors Francis Grant – Great Linford School Janet Haines – Oldbrook School (alternate for Kirk Hopkins) Paul Hussey – Bradwell Village Primary School (Chair) Jake Yeo – Bushfield School Secondary School Representative Tracey Jones – Lord Grey School Secondary School Governor Paul Herbert – St Pauls Catholic School Academy Representatives Neil Barrett – Stephenson Academy Michelle Currie – Walton High Jane Edwards – Heronsgate School Glen Martin – Shenley Brook End Andy Squires – Denbigh School Ian Tett – Oakgrove School Academy Governors Dave Moulson – Ousedale School Special School Representative Finlay Douglas – White Spire School Nursery School Representative Natalie Fowler – Knowles Nursery School Church of England Diocese Kieran Salter – Diocesan Authority – St Mary and St Giles C of E Junior School Northampton Catholic Diocese Michael Manley – Diocesan Authority Trade Union Representative Anita Richards – NUT Divisional Secretary SCHOOLS FORUM 1 DECEMBER 2016 PAGE 1 LA OFFICERS: Michael Bracey – Corporate Director - People Natasha Hutchin – Deputy Finance Manager Caroline Marriott – Head of Delivery SEN and Disability Penni Powers – Finance Manager - Children and Families Nicky Rayner – Service Director – Children and Families OBSERVERS: Bob Seaman – Northamptonshire County Council Helen Wray – Governor Support – Children and Families CLERK: Sue Puddifoot – Governor Support - Children and Families SF 607 WELCOME AND APOLOGIES Item 1 The Chair welcomed all to the meeting, including the two new academy members Andy Squires and Jane Edwards. Apologies in advance had been received by the clerk from: John Howe – Denbigh School Antony Moore – Giles Brook School Ian Northover – Heronshaw School Lindsey Styles – Milton Keynes College Lynne Johnson - Pre School Learning Alliance was absent. Jonathan Budd – Primary PRU had resigned. SF 608 DECLARATIONS OF INTEREST Item 2 Michelle Currie declared that although she represented a secondary academy, she was also Chief Executive Officer of MKET (Milton Keynes Education Trust) and therefore had an interest in all areas due to the variety of schools in the trust. SF 609 MINUTES AND MATTERS ARISING Item 3 The minutes of the meeting held on 13 October 2016 were agreed as an accurate record. There were no matters arising from the minutes. SF 610 BUDGET MONITORING 2016/17 (Natasha Hutchin) Item 4 The purpose of this item was to advise Schools Forum of the latest Dedicated Schools Grant (DSG) allocation for 2016/17 and the period 8 budget monitoring position for 2016/17. Natasha Hutchin confirmed that the Early Years Block allocation was £104k greater than the initial allocation and this had been reflected in income and expenditure. However, the Block 2 census information for Early Years providers had not been included and this would feature in the next report. SCHOOLS FORUM 1 DECEMBER 2016 PAGE 2 This was the second year of Early Years Pupil Premium which had been initially estimated and had been reviewed on actual take up. This resulted in a reduction of £77k compared to 2015/16 allocation. The current DSG forecast was for an overall £1.051m deficit, which was a £41k improvement on that reported at the last meeting. Table 2 detailed the significant forecast variations to the DSG budget and included the Early Years allocation and mid year academy conversions. There was a small change in rates and there would be a revision carried out on Newton Leys but a contingency had been set aside for this. There was an underspend on the Growth Fund as Kents Hill schemes would not be paid this financial year. There were also small movements around High Needs with an £155k underspend on top-up funding but an Independent Special School fees overspend of £1m. Detailed work had been carried out on an individual placement basis to determine the phasing and timelines on when these payments would cease, so this could be factored into next year’s budget. Schools Forum questioned why there had been less take up of Early Years pupil premium. This was due to the initial allocation being high but feedback on the acceptability of applications received had indicated that not all were eligible. Schools Forum noted the level of DSG for 2016/17 and the latest outturn position as reported for period 8. SF 611 MILTON KEYNES SCHOOLS BUDGET PLANNING 2017/18 (Penni Powers) Item 5 The purpose of this report was to give Schools Forum members an early opportunity to review how the estimated 2017/18 DSG, including the use of balances, was allocated across schools and academies by way of the funding formula and central early years and high needs budgets. Penni Powers explained that this would be brought back in January 2017 and the information presented was to prompt discussion. There were still many unknown factors that could impact on the budget. A set of slides which gave an early overview of the budget position was circulated at the meeting. The budget setting process was outlined for new members and the overview included the continuing challenges, uncertainties and reductions. When the budget was set in January it was agreed that the overspend in the current year would be the first call on the 2017/18 DSG. Section 5.5 outlined the estimate for the DSG. The blocks were not currently ring-fenced but this may be introduced in future as part of the National Funding Formula. More detail on summary budgets was SCHOOLS FORUM 1 DECEMBER 2016 PAGE 3 included in Annex 1. Annex 3 detailed the additional places in planned growth. There was no inflationary rise and the MFG was set at -1.5%. The main pressures continued to be growth, high needs and post 16 provision. At post 16, expenditure exceeded funding provided and ways to manage this would have to be considered. Schools Forum drew attention to aspects of growth data and Annex 3 included growth that had been funded. FSM and EAL figures would be available to include from mid December 2016. Broad assumptions had been made on the 15-30 hours take up for Early Years. An in year surplus of £1m was required to balance the budget. The National Funding Formula would be introduced from April 2018 and it was essential to go into this with a balanced budget. The budget would be voted on at the meeting to be held on 12 January 2017 and papers for this would be circulated as soon as practically possible in the new year. School Forum members discussed the options presented and there was some objection to reducing the formula by 1.5%, but it was understood why this was necessary. Many felt that schools had already reduced their expenditure at a time when costs were rising. It was also suggested to carry the £1m overspend to the next year. Attention was also drawn to section 3.3 where the government was introducing a 0.5% apprenticeship levy on payrolls over £3m. This needed further definition. Annex 3 showed details of the additional growth numbers to be funded over and above those already in schools. There may be scope for delaying the opening of Fairfields and place planning would be considered further. It was noted that there were empty places in some reception classes this term. Michael Bracey outlined the difficulties in the Council’s overall financial position and the changes that public sector bodies would be facing in the next few years. School Forum members thanked officers for presenting options and noted the uncertainties surrounding the introduction of the National Funding Formula and the difficulties in balancing the budget if the MFG remained at -1.5%. Staggering clearing the deficit over two years was suggested. In the High Needs Block, per pupil costs and income were discussed and out of area placements could be reduced by providing facilities in Milton Keynes, hence reducing costs. However, complexity of need was increasing. Further detail would be provided in January after census data had been included. Special School place numbers were being increased by 88 to SCHOOLS FORUM 1 DECEMBER 2016 PAGE 4 meet demand and to give stability of funding of special schools. All Early Years, High Needs, Growth and Central Budgets had been reviewed. Proposals in the report on funding formulae for 2017/18 were discussed and included removing the mobility factor and recycling it through IDACI allocations. Movement towards a £130k lump sum for the primary sector would continue and the difference recycled through the AWPU. Changes for Early Years included the removal of the lump sum and to align central budgets, holding up to 5% in central budgets. (See also item 6). Discussion took place on the limited scope for adjustment and how different schools may be affected and what the impact might be. Many schools had been prudent while others had not taken a more strategic view. Groups of schools could work together to achieve economies of scale. The removal of the lump sum for nursery schools would be covered by two years of transitional funding but detail on this was limited at present. The situation of Milton Keynes in comparison to other local authorities was discussed, with particular reference to growth at a time of austerity and what affect the National Funding Formula may have in the future. If the Schools Block were ring-fenced this would have implications for the support it was giving to the High Needs Block. Schools Forum noted the issues arising from budget planning for the Schools Budget for 2017/18 and future years and endorsed the draft proposals to balance the budget ahead of final discussions in January.
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