Agenda item

Report of the Chief Officer for Children’s Services and County Treasurer (DEF/19/01) attached.

DISCUSSION:

The Forum considered the report of the Chief Officer for Children’s Services and County Treasurer (DEF/19/01).

The Forum also noted the respective minutes of the Schools Finance Group (SFG) of

9 January 2018.

The report (DEF/19/01) covered:

Dedicated Schools Grant (DSG) 2019/20 Budget Planning

Schools Block 2019/20

Central School Services Block 2019/20

High Needs Block 2019/20 (including pressures and planned actions)

Early Years Block 2019/20

Other Schools Grants 2019/20

Month 8 DSG Budget Monitoring Position 2017/18 (including DSG Month 8 forecast and major variations; High Needs Month 8 forecast and budgets).

The County Treasurer summarised sections 1-6 of the report. Discussion on these sections included:-

-members’ had some reservations regarding the EFSA schools funding allocations 2019/20 announced 17 December 2018; Devon will be funded £294 per pupil lower than the national average, £26.8million in total.

-the continued considerable budget pressure of the High Needs Block (section 4) and  whether there could be an increase in Alternative Provision places at least in the short term until strategies within the Devon Inclusion Project could take effect to support pupils with SEN and complex needs;

-that as a lot of the budget was needs-led, the LA could not guarantee demand and it therefore challenging to achieve the management action required in year 2019/20 to meet pressures of £5.34m; There was a request that DEF members be provided with a breakdown of the 2019/20 £2.4m management actions (paragraph 7.6 of the report) regarding the

3^rd – 5^th year action within FE.  Actions were currently being worked on;

-the 16-19 representative would welcome continued dialogue to offer improved value SEN placements.

The County Treasurer further summarised section 7 of the report (Month 8 DSG budget monitoring) and members’ discussion included:-

-it was acknowledged that Devon had played a considerable part in the additional £250m of funding for high needs 2018/19 and 2019/2020, with Devon receiving £1.54m each year;

-the Secretary of State decision regarding the disapplication request was expected shortly and by 28 February 2019 at the latest.

- Due to the local formula Devon Secondary schools will see a lower minimum funding per pupil level than those of Cornwall and Plymouth. 

-any plan B for HNB budget pressures to avoid the ongoing cycle.  Costs of independent sector high needs provision was a national issue and delays in additional Devon infrastructure had been beyond Devon’s control.  The growth to this budget line was therefore unfortunately expected to continue to grow but the rate of growth should slow down due to other action taken. This growth is recognised within the 2019/20 budget.  The Children’s Scrutiny Committee on 21 January 2019 considering the 2019/20 budget supported proposals (subject ratification by the full Council Budget meeting on 21 February 2019) to corporately set aside £3.5m next year to cover changes to accounting rules requiring the Council to finance any High Needs deficit from 2021/22;

-that as requested by SFG a communication to Headteachers to explain the revised disapplication request to 0.25% was being prepared by the County Treasurer in consultation with DAPH and DASH and would be sent out shortly. 

- Governors requested as part of communication on budgeted it should include expectations for the next 3 year budgets, an explanation of the short term and guidance for the medium term, 3-5 years.

DECISION:

(a) that the Dedicated Schools Grant (DSG) 2019/20 EFSA announcement on 17 December 2018 as set out in section 1 of report (DEF/19/01) be noted;

(b) that the Schools Block, High Needs Block and Early Years Block for 2019/20 as set out in sections 2 to 6 of the report be noted;

(c) that month 8 DSG monitoring position as set out in section 7 of the report be noted.