Agenda Milton Keynes Schools Forum Milton Keynes Professional Development Centre (MK PDC) Galley Hill, Milton Keynes, MK11 1PA 17 October 2019 3.00pm – 4:30pm Lead Time 1. Opening matters Chair 3.00 1.1 Apologies for Absences 1.2 Disclosures of Interest 1.3 Minutes and Matters Arising 2. To Note 2.1 Forecast Outturn 2019/20 SH 3:10 3. Discussion Items 3.1 Government Updates and 2020/21 Budget Setting NH 3.20 3.2 Growth Fund SH 3.40 3.3 De-delegation Services 2020/21 SH 3.55 4. Standing Items 4.1 Membership and Constitution NH 4.15 4.2 Update from sub-groups of the Schools Forum Schools Reference Group – not met Early Years Reference Group – not met High Needs Reference Group – not met 5. Closing matters 5.1 Forward Planning All 4.20 12 December 2019 Forecast Outturn 2019/20 Government Updates Budget Setting 2020/21 Annual Report on High Needs Annual Report on Early Years Annual Report on Alternative Provision Section 251 2019/20 Budget 16 January 2020 Forecast Outturn 2019/20 Budget Setting 2020/21 5.2 Any Other Business All 4.25 MILTON KEYNES’ SCHOOLS FORUM Milton Keynes Professional Development Centre (MKPDC) Galley Hill, Milton Keynes, MK11 1PA MINUTES OF THE MEETING HELD ON THURSDAY 27 JUNE 2019 AT 3.00 PM PRESENT: Primary School Representatives Lizzie Bancroft – Loughton Manor First School Kirk Hopkins – Oldbrook School Elisabeth Morrison – Brooklands Farm School Primary School Governors Francis Grant – Great Linford Primary School Paul Hussey – Roman Village Federation (Chair) Secondary School Governor Paul Herbert – St Paul’s Catholic School Special School Representative Finlay Douglas – White Spire School Academy Representatives Neil Barrett – Stephenson Academy David Gibson for Michelle Currie – Walton High John Howe – Denbigh School Glen Martin – Shenley Brook End Academy Governors Dave Moulson – Ousedale School 14-19 Partnership Lindsey Styles – Milton Keynes College Nursery School Representative Natalie Fowler – Knowles Nursery School Shared vote Deb Spinks – Moorlands Centre Nursery School Diocesan Authority Michael Manley – Northampton Catholic Diocese Tony Wilson - Oxford C of E Diocese Trade Union Representative Anita Richards – National Education Union District Secretary LA OFFICERS: Sonia Hattle – Senior Finance Business Partner Natasha Hutchin – Strategic Finance Business Partner CLERK: Sue Puddifoot – Governor Support – Children’s Services ALSO PRESENT: David Tooley – Member of the press SCHOOLS FORUM 27 JUNE 2019 PAGE 1 SF 724 WELCOME AND APOLOGIES Item 1 The Chair welcomed all to the meeting. There were two new members of Schools Forum; Kate Warren, SBM from St Paul’s and Tony Wilson from the Oxford Diocese. Apologies for absence had been received by the clerk from: Norman Miles – MK Primary PRU Antony Moore – Giles Brook School Andy Squires – Denbigh School Kate Warren – St Paul’s SBM Jane Edwards – Heronsgate School, Helen Middleton - Pre School Learning Alliance, Christine Ryan – Cold Harbour C of E School and Jake Yeo – Bushfield School were absent SF 725 DECLARATIONS OF INTEREST Item 2 There were no declarations of interest made. SF 726 MINUTES AND MATTERS ARISING Item 3 The minutes of the meeting held on 17 January 2019 were agreed as an accurate record. There were no matters arising. SF 727 BUDGET MONITORING - 2018/19 FORECAST OUTTURN AND 2019/20 BUDGET (Sonia Hattle) Item 4 The purpose of this report was to receive a report on the final outturn position for 2018/19 and the initial budget for 2019/20. Sonia Hattle drew attention to the report which included the 2018/19 final outturn position and variances. The final DSG allocation had increased by £946k since the January report as a result of an estimated early years funding adjustment which would not be confirmed until July 2019. The outturn was a surplus balance of £2.870m, a slight reduction on the previous forecast position. The summary table on page 5 of the report gave the final outturn position, which was still subject to review by the DfE as part of the DSG assurance process and this would take place in October 2019. Since the January 2019 report there had been an increase in the schools block underspend of £104k and adverse movements in the early years and high needs blocks of £99k and £207k respectively. Significant variations were detailed in section 3.7 of the report. Schools Block – resulted in a £578k underspend Early Years – resulted in a £517k underspend High Needs Block – resulted in a £1.774m underspend. There had SCHOOLS FORUM 27 JUNE 2019 PAGE 2 been £720k of additional funding announced in December 2018 and this was not spent in year and would be carried forward to 2019/20. A de-delegated budget update was given in section 3.8 and the primary schools contingency for those in financial difficulty had been agreed at the October 2018 Schools Forum meeting to be redistributed to maintained primary schools within their 2019/20 school budget. For 2019/20, the only changes were that the overall DSG carry forward was £164k less than anticipated when the budget was set and the growth fund allocations for an additional 30 places at Milton Keynes Academy and 30 places at The Radcliffe School. Schools Forum noted the 2018/19 final funding allocation and outturn position, including balances carried forward on both the DSG and de- delegated budgets. Schools Forum also noted the budget for 2019/20, including the opening balances carried forward. SF 728 2020/21 SCHOOL FUNDING AND GROWTH FUND CRITERIA (Sonia Hattle) Item 5 The purpose of this report was to provide members of Schools Forum with an update on the 2020/21 Dedicated Schools Grant (DSG) budget plan and proposals for the 2020/21 growth fund criteria. The 2020/21 final allocations would be confirmed in December 2019 after October census information was available. The MK formula had been fully transitioned to the National Funding Formula (NFF) with small changes to be considered in a consultation with individual schools: A review of the mobility factor A review of split site funding A review of the MFG A review of the CAP The growth fund was funded from the Schools Block and in view of the reduction of growth funding allocated to MKC, a review of all aspects of growth expenditure and the schools funding formula was required. The change in DfE funding meant that only positive growth in a Middle Super Output Area (MSOA) would be funded. MKC would receive protection funding for two and a half years and the table in section 5.5 of the report showed the pressure based on the estimated funding allocations and growth projections. The two School Reference Group meetings had discussed the options available to bring growth expenditure in line with the allocation received. Further financial modelling had taken place and presented to the second SRG meeting Benchmarking against other local authorities was difficult as each set their own criteria so there was no like for like comparison. SCHOOLS FORUM 27 JUNE 2019 PAGE 3 Schools Forum members then discussed the options put to them from the SRG: Does Schools Forum agree that the use of any carry forward surplus should be prioritised towards the following year’s growth funding shortfall? Points raised in the ensuing lengthy discussion included: There was a total of £664k which could be used towards the 2020/21 growth funding shortfall. This was not sustainable and a sustainable solution was required. Natasha responded that the cost of growth was expected to naturally reduce as schemes came to an end and the criteria was changed for new schemes and therefore it would be reasonable for the carry forward to be used as a first call on the 2020/21 pressure. For existing schemes the surplus would go towards the 2020/21 pressure. Existing agreements had already been made on a set of growth funding criteria so should be honoured. Only spend what is received. For new schemes, have a new set of criteria. Change the growth funding criteria for new schemes based on the amount of funding received. After this, discuss on deducting from schools budgets and how the CAP is applied to manage the difference. There may be a hard NFF for growth implemented, which would then affect funding available for schemes already in place (although there was uncertainty about the timeline for hard implementation). Deducting the same percentage for each school from the NFF (i.e. through the AWPU). There was some discussion about the application of the NFF and a view that schools who are gaining should see a full gain now and not be capped. Natasha Hutchin explained that funding received was not on the same methodology as the funding allocated through the formula and the principle behind NFF was that capping would need to apply throughout the transition through to full NFF. The MFG and CAP cannot be applied to the formula (under regulation) based on absolute values and were applied as percentages to be consistent and fair so that all were proportionately capped. Changes should not penalise some while others benefited. Under the NFF regulations, the following could be considered: Apply a higher MFG (more schools would lose funding and see an actual reduction) A blanket reduction in AWPU (this moves MK away from the NFF rates which could result in more turbulence when moving to hard NFF) For clarification, capping is applied on gains only, so these schools were still seeing a year on year increase in per pupil funding – the NFF always stated that there would be cap on gains throughout SCHOOLS FORUM 27 JUNE 2019 PAGE 4 transition The SRG could discuss logistics after the outcome of the consultation Schools Forum were broadly in agreement that the carry forward surplus be used towards the following year’s shortfall, however members requested more detail for following years but this was not yet available.