1. Scene Setting for 2015/16 DSG Budget David Waller, Assistant Director of Finance 1

2. Overview The Council’s financial position and plans DSG – Schools Block DSG - High Needs DSG - Early Years Balances Timetable 2

3. City Council’s Financial Position (1) The total savings the Council has to achieve in 2014/15 is £85.7m. Savings increase by another £206.7m in 2015/16 and a further £81m in 2016/17. In total, at this point in time, the Council must achieve £373.4m of savings by 2016/17 3

4. City Council’s Financial Position (2) Areas where the Council’s published savings could impact: Outdoor Learning Service – BCC is withdrawing as a direct provider of the service. DSD – primary impact is reducing Head Office structure, function and operations. Education Welfare Service – review of options for continuing to work with Schools, Admissions team etc. School Crossing patrols – savings target of £0.475m in 2014/15 increasing by another £0.415m in 2015/16 Early Years - £5m proposed step up in savings required in 2015/16 PFI Costs to DSG- £6m proposed step up in savings in 2015/16 4

5. DSG –Schools Block (1) For 2015/16 the DfE will allocate £350m to Local Authorities which they have identified as being the least fairly funded. Birmingham is not one of the authorities The £350m is apparently new/additional funding and will not result in any redistribution of funding between LA’s. We do not expect the DfE to make any changes to the fair funding formula or move to a national formula until post 2015/16 at the earliest. Expect the funding per pupil we receive for the Schools block to stay unchanged at £5,218.28 5

6. DSG – Schools Block (2) MFG will remain at 1.5% - funded by cap on schools who gained under the reforms. There could be pressure on the Growth fund as a result of potential changes to how Free Schools are funded. Will need to consider the impact/outcomes of the Education Services Review 6

7. DSG – Schools Block (3) Schools Forum will need to approve ongoing funding for centrally funded commitments with the exception of: a)‘de delegations’ where primary & secondary reps on Forum agree for their phase and b)contribution to children services re equal pay which is already agreed for 10 years 7

8. DSG –High Needs We expect an ongoing shortfall in funding arising from growth in places and complexity of need. Will need to consider how we fund any shortfall Ongoing refinement of the banded funding framework for Special schools and extension to Resource bases and Post 16 providers Impact of Children and Families Act 2014 – e.g. introduction of Education and Health Care Plans, Local Offer, Personal Budgets. Expecting the DfE to issue a High Needs consultation paper in July 2014. 8

9. DSG – Early Years (1) Funding for 2 year olds will be based on participation – could have an adverse impact on DSG funding. Early Years review will need to be considered Living Wage in PVI’s in 2015/16 will also be an issue for consideration. Ongoing £1.6m deficit to fund arising from the removal of transitional protection in 2013/14 and 2014/15. 9

10. DSG – Early Years (2) Schools Forum will need to agree ongoing funding for centrally funded commitments. Any planned changes to structure of Early Years Single Funding formula arising from the Early Years review will be subject to consultation. Funding per pupil for EY block expected to remain unchanged at £5,215.79 Expecting a DfE consultation paper on 2 year old funding and EY pupil premium funding by July 2014. 10

11. Balances No clawback of surpluses from 2013/14 balances Sample number of schools selected to complete and submit returns the outcomes of which will be reported to Schools Forum When looking at all of the pressures that are faced in 2015/16, Schools Forum and the Council will need to take a view as to what extent they might need to be used to meet funding shortfalls. 11

12. Provisional Timeline (1) September 2014 Schools Forum: a)Report on school balances returns b)Preliminary report on ‘de delegations’ and centrally managed commitments for Forum to consider before decisions in November c)Growth Fund update October 2014 a)Submit provisional 2015/16 school budget proforma to EFA b)Local Proposals for changes to 2015/16 Fair Funding scheme 12

13. Provisional Timeline (2) November 2014 Schools Forum: a)Final report on ‘de delegations’ and centrally managed budgets (Early Years and Schools block) December 2014 Schools Forum: a)DfE announcement of indicative DSG allocations January 2015 Schools Forum: a)Submit final Schools proforma to EFA b)Finalise block allocations c)Outcome of Special Schools banded framework review 13

14. Provisional Timeline (3) February Schools Forum 2015 a)Cabinet Report re School Funding b)Inform Primary & Secondary schools of their 2015/16 budgets March Schools Forum 2015 a)Inform Special Schools and Resource bases of their High Needs allocations b)Inform Early Years providers of their allocations 14