Governor Update 9th March 2017

Welcome and introductions Aim of the meeting: Explain current financial challenges Explain New Funding Formula (NFF) Likely impact Opportunities under review Next steps

National Press

Hampshire primary schools are in a similar position Financial Challenges Over the next few years, the school will not have enough income to cover its costs. This deficit results from a number of things, including: National Insurance payments increase. Some teachers reaching the top of their salary scales. Reduction in budget share income. Unexpected pupil vacancies and funding reductions. Exclusive Pupil Premium take up is low. We run a very tight budget and keep non staff costs down, but resource allocation is limited, being a small school. 85% Hampshire primary schools are in a similar position

Financial Challenges Government intend to introduce in two years time a new School Funding Formula. This is up for consultation until 22 March. Allocation of money made centrally by the DfE. The allocation between schools will vary considerably. Rural primary schools - like Compton - will be hard hit. This will add substantially to our debt issues.

School balances – 3 year plans (£m)   Actuals Forecast 2015/16 2016/17 2017/18 2018/19 Nursery 0.4 0.3 0.2 Primary 40.0 26.5 14.8 (1.3) Secondary 9.2 0.1 (7.8) (15.7) Special 5.5 2.9 1.0 Education Centres 0.8 0.5 (0.1) Total 55.9 30.4 8.5 (18.2)

Primary unit values National Average HCC (2016/17) HCC (2017/18)   National Average HCC (2016/17) HCC (2017/18) NFF (before ACA) AWPU £3,024 £2,574 £2,639 £2,712 Deprivation FSM £963 £0 £980 FSM Ever6 £540 IDACI F £128 £365 £337 £200 IDACI E £191 £718 £672 £240 IDACI D £320 £1,525 £1,408 £360 IDACI C £476 £1,782 £1,410 IDACI B £626 £2,843 £1,683 £420 IDACI A £704 £3,197 £2,222 £575 Looked after children £662 £1,983 Low attainment £812 £1,452 £1,377 £1,050 Mobility £346 £1,028 Historic English additional language £482 £603 £515 Sparsity £6,206 £15,000 Tapered Lump sum £128,213 £175,000 £160,000 £110,000 Local authority can’t influence how that lump sum is d

Gainers and losers by size – primary No Change Total schools Gain/ Loss Number £m 0-50 - 2 -0.01 51-100 0.01 29 -0.3 31 101-150 56 -0.7 150-200 18 0.2 61 -0.8 79 -0.6 201-300 78 1.5 65 -1.2 3 146 0.3 301-400 58 2.1 10 1 69 1.8 401-500 25 1.6 5 -0.2 1.4 501-600 4 -0.04 601-700 0.6 Total 190 6.3 229 -3.6 424 2.7

Gainers and losers: schools with <200 pupils   Gainer Loser Total Net Gain/Loss District No. of schools Gain £'000 Loss £'000 Number Net Gain/ Loss £'000 Basingstoke 3 21 17 -180 20 -159 East Hants 27 22 -285 25 -258 Eastleigh 1 7 -61 2 -54 Fareham 9 -139 Gosport 8 -149 -146 Hart 18 6 -62 -44 Havant -161 New Forest 29 24 -287 26 Rushmoor -106 -99 Test Valley 23 -295 -272 Winchester 32 19 -209 -177 Total 167 149 -1,934 169 -1,767

Financial Challenges Positive Balance Deficit

Impact on Compton Primary School HCC will not officially allow us to go into the red – as other schools have done – so we need to have a plan for recovering the problem. We are investigating three possible solutions: 1 Expand the school 2 Decrease spending 3 Increase income

Next steps Further review and consideration by Full Governing Body (FGB) Consult with other FGB in area. Benchmark costs against other primary schools. Explore opportunities to share overheads through interschool collaboration. Maintain an open dialogue with HCC stakeholders to develop acceptable recovery plan that minimises disruption to pupils & staff. 4 1 2 3 Await outcome of DfE consultation process with respect to future funding (to determine the scale of the challenge). Maintain transparent dialogue with parents, staff and pupils. Call to action: write to DfE and/or local MP to object to changes in funding – particularly the erosion of fixed lump sum that has been a lifeline for small schools like Compton.

Any Questions? a.governors@compton.hants.sch.uk