1. Schools Forum Budget Setting 2015/16 Overview

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

3. Budget Issues 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

4. 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 top ups for additional special school pupils 1,680 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 more than one site 400 No additional special school place funding from Sept 2015395 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

5. 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 MFG, as the shares of funding need to be redistributed Short term decisions that may have a long term impact

6. 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 Rephasing the payment of set up allowances to expanding and new schools - £318k

7. 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

8. 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 and 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 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.