1. Governor Update
9th March 2017

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

3. National Press

4. 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

5. 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.

6. 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)

7. 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

8. 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 56
-0.7 18
0.2 61
-0.8 79
-0.6 78
1.5 65
-1.2 3
146
0.3 58
2.1 10 1 69
1.8 25
1.6 5
-0.2
1.4 4
-0.04
0.6
Total
190
6.3
229
-3.6
424
2.7

9. 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

10. Financial Challenges
Positive Balance
Deficit

11. 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

12. 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.

13. Any Questions?