Chairs and Vice Chair of Governing Bodies with senior officers and Lead Member Tuesday 24 February 2015

Director of Children’s Services Update 1. Role of the Corporate Director 2. Inspection and school improvement 3. Budget (DSG) 4. Workforce – Recruitment pilot

Corporate Director role - explained Following the departure of two Corporate Directors the Council reviewed arrangements and put a new model in place: Chief Executive Corporate Director – People Corporate Director – Place Corporate Director – Resources Director of Strategy Role includes statutory Director of Children’s Services role (DCS) but not Director of of Adult Social Services (DASS) Education Children’s Services Adult Services Public Health c£135 Million Spend 1141 FTE/1379 Employees

School Ofsted Outcomes – Latest Position Community / Foundation / VC / VA OutstandingGood Percentage Good or Outstanding Requires Improvement Inadequate No Judgement Total Number 19 (22%)53 (61%)83%15 (17%)0087 All schools OutstandingGood Percentage Good or Outstanding Requires Improvement Inadequate No Judgement Total Number 26 (24%)65 (59%)83%19 (17%) (23 Academies) 2 Feb 2015

School improvement Revised ‘Schools Causing Concern’ guidance published by the Department for Education on 20 January. Revisions aim to ‘clarify’ the LA role in relation to intervention both in maintained and academy schools. Revisions also include a ‘non statutory’ section placing an expectation on the LA to promote and support high standards of governance. The accompanying letter states ‘as of 1 December 2014 a total of 326 warning notices have been issued by LAs and 344 LA imposed IEBs. However, some 29 LAs have never issued a warning letter or established an IEB’ and calls for this sort of action where ‘the situation requires it’.

Budget Setting 2015/16 Overview

Agreed local budget strategy…so far Minimal change to local funding arrangements Maximum funding to schools and early years providers Reduction in centrally held budget Move towards aligning local rates with national average Fund planned growth to ensure stability across the system

Budget challenges No inflationary rise Another year without any inflation applied to the DSG Minimum Funding Guarantee Limiting reduction in school funding Growth Pressure Managing the revenue pressure created by increased growth High Needs Pupils No increase in the high needs block for demography Challenges Post 16 Provision Expenditure significantly exceeds funding provided

Pressures on DSG Budget Pressure£’000 Growth in number of mainstream school places1,700 Increase in the number and complexity of high needs children and additional top ups1,680 Minimum Funding Guarantee protection1,100 Unfunded element of new Post 16 responsibilities900 Start up funding for four new primary schools and for schools expanding onto another site400 No additional special school place funding from Sept Partially Offset by Marginal rate of funding for increase in primary pupils(1,200) Increase DSG to Minimum Funding Level(600) Reduction through formula resulting from data changes(480) Increased balance carried forward(400) Total Pressures on DSG3,675

Challenge Without additional funding coming into the system, increased cost pressures from meeting the unavoidable needs of pupil number growth and increased numbers of pupils with high needs, have to be met from: –Reducing central expenditure –And the limited amount of funding that can be redistributed from schools as restricted by the effect of the minimum funding guarantee (MFG)

Proposed Budget Reductions 2015/16 Reductions to unit rates of 2% in the primary and secondary funding formula - £1,231k Reducing top up rates by 1.5% for special schools and limiting additional funding for pupils admitted over funded places - £504k Reduce secondary Alternative Provision by 1.5% - £45k Reduce lump sum in Nursery Schools - £40k Reduction in high needs central services - £908k Reduction in other central costs - £629k Re-phasing the payment of set up allowances to expanding and new schools - £318k

Budget strategy…going forward Action taken to ensure there is not a deficit on the DSG Funding for schools largely protected – MFG More proactive commissioning of high needs services and provision Significant reduction in centrally held budgets Reduced funding for planned growth Continue to press government for appropriate levels of revenue support...and a national funding formula may be on it’s way after the election anyway

Balancing the budget in the medium term In 2015/16 a budget has been set but: Retains no working balance There is an in year deficit of £625k (likely offset by some carry forward) Only a small contingency held for high needs pupils In 2016/17 even with a further 1.5% reduction in unit rates in mainstream schools the in year deficit remains at £600k without any likely carry forward In 2017/18 the distribution of funding becomes rebalanced and the MFG protection reduces moving the DSG into a balanced position The DSG will formally be agreed as part of the Council’s Budget and MTFP report at Council on 18 February 2015.

Positioning and future priorities This is an opportunity for us to take stock of what we have achieved together, where we are and what we want to go next 1.What is our education narrative in 2015 as opposed to what would our ‘elevator pitch’ be? 2.What should our future priorities include and how do we want to work together towards achieving these? So how is MK doing then?

Milton Keynes - Together for learning Further develop the existing opportunities for collaboration across Milton Keynes and reach out nationally and internationally to learn from the best. Promote Milton Keynes as an attractive and rewarding place to come and work and continue to develop those colleagues who are already here. Redouble our efforts to ensure all children and young people, particularly those with additional needs, get the support they need to participate and be successful. We are a confident school community We value each others support and challenge We want to be at the leading edge of learning Our priorities DRAFT 1

Next meeting Tuesday 16 June 2015