EDUCATION COMMITTEE
22ND JANUARY 1991
REVENUE BUDGET 1991/2
REPORT OF THE COUNTY TREASURER AND THE COUNTY EDUCATION OFFICER
Summary
The base budget for 1991/92 is described to show how it is built up
from the 1990/91 budget, allowing for changes in inflation and
pupil/student numbers. Proposals for growth are made within
guidelines from the Policy and Resources Committee. Options for
savings to cover the projected overspend of £3.3m for 1990/91 and
commitments of £3.6m for 1991/92 are put forward for the Committee's
consideration. Section 8 summarises the figures for growth,
commitments and possible savings.
1. Budget Guidelines from Policy and Resources Committee
1.1 The Education Committee's recommendations will be considered by
the Policy and Resources Committee on 11th February 1991.
This report makes proposals in accordance with 1991/92 budget
guidelines set by the Policy and Resources Committee at its
meeting on 10th December 1990.
1.2 The Policy and Resources Committee resolved that
1. the Committee should plan to recommend a precept for
1991/92 which will represent an increase of less than 10%
over the 1990/91 precept;
2. to assist in making final decisions on the budget, bearing
in mind the flexibility that exists in the level of
revenue contributions to capital and in anticipation of a
favourable trend in inflation rates, Committees be asked
to present budget proposals containing growth over base
budget levels with full year revenue effects as follows:
Education £3,800,000
In addition, on considering the revised estimate 1990/91
it was recommended that
(a) conditional on (b) and (c) below, the Education Committee
be required to carry forward its overspend of £3.304m for
this year, but that if the Education Committee is able to
bring forward proposals under which sums within its base
budget can be redeployed towards higher priorities, this
Committee, recognising the exceptional problems that have
arisen as a consequence of the introduction of local
management in schools, will examine whether further
resources can be made available to the Education
Committee;
1.
(b) an independent study be carried out into the structure,
financing, monitoring and cost control of the Education
Department;
(c) the Committee be asked to make every effort to reduce the
overspending by action in the current year.
1.3 Separate arrangements are being made for the Policy and
Resources Committee and the Education Committee's Budget
Control Panel to consider the report by the consultants.
1.4 This report deals with:
* the request to reduce the overspending by action in the
current year (Section 2);
* the base budget for 1991/92 - which contains in-built growth
of £9.4m (2.1%) (Section 3);
* commitments outside the base budget totalling £3.6m,
mainly on statemented pupils, redundancies and other issues
identified in the revised budget for the current year
(Section 4);
* growth proposals within the £3.8m guideline from Policy and
Resources Committee (Section 5);
* the position on schools budgets which show a total
increase of some £42m from the above factors, including
inflation (Section 6);
* options to achieve savings of a minimum of £6.9m in 1991/92
to meet the projected 1990/91 overspending of £3.3m and to
achieve further savings of £3.6m by redeployment within the
base budget to cover current commitments (Section 7).
Savings in excess of this sum, to a total value of
£7.4m in 1991/92 (£9.35m in a full year) have been put
forward to enable the Committee to exercise some choice in
meeting the targets or giving more money to schools and
colleges.
1.5 In this report it has been assumed that
* the base budget will be approved;
* new growth of £3.8m is used as a minimum contribution to the
needs of schools in implementing LMS and the national
curriculum;
* the budgets allocated to schools will be protected, and the
savings required within the base will be found from other
areas.
2.
2.0 Revised Budget 1990/91
2.1 The Committee's revised budget for 1990/91 was approved by the
Policy and Resources Committee on 10th December 1990, at a
total of £451.3m. This provides for the estimated £3.3m
excess over the original cash limit, but this sum has to be
offset by equivalent savings in 1991/92, subject to the
conditions set out in para. 1.2 above.
2.2 This Committee has been asked to make every effort to reduce
the overspending by action in the current year. The Committee
is aware that the projected overspending results largely from
£'000
Additional statemented pupils 1,710
Redundancies and premature retirements 1,040
_____
2,750
-----
2.3 A further £305,000 of the overspend is attributable to
increased demand for further and higher education and hence
for discretionary awards. The balance is the net effect of a
number of other variations.
Redeployment of money in the 1990/91 Budget
2.4 More than 80% of the Committee's gross budget was committed to
schools and colleges in April 1990. As explained in the
report on the revised budget to Policy Sub- Committee in
November 1990, there is no further scope to cut back on other
areas.
2.5 With budgets fully allocated to schools and colleges at outturn
prices, there has been far less scope to balance the budget
than in previous years. For example an underspending on
teachers' salaries, support staff, or heating costs, is no
longer available since it is retained by the school/college
for its own budget share. The proportion of the budget
available to make direct savings where problems occur is less
than 20% of the total and is committed mainly to provide
special schools and support services nonetheless there has
been extensive redeployment of money within the current year's
budget. Savings totalling £2.2m were made to cover the
overspending of £867,000 brought forward from 1989/90 and the
Committee's share (£1,162,000) of the £2m savings required for
the County Council's budget. Under the "Budget Strategy"
agreed last year £715,000 was redeployed to schools and
colleges from the awards, transport and inservice training
budgets.
2.6 At the last meeting the following actions were reported
* continuing the freeze on all staff vacancies apart from
those in schools and colleges and the essential services
made directly to them;
3.
* freeze on any outstanding orders or commitments not needed
to meet statutory requirements during the current financial
year;
* embargo on further redundancies or premature retirements
within the Committee's control (i.e. on non teaching staff,
and teaching staff in primary schools without delegated
budgets) where these would result in costs during the
current year which would be greater than retaining the
employees' services;
* requirement for the adult institute budgets to be contained
within their cash limits.
2.7 Firm managerial action is being maintained and all staff in the
department are taking action where possible to reduce
expenditure. It appears impossible, however, to reduce the
Committee's spending to the cash limit and the Committee faces
the prospect of a significant carry forward at the year end.
2.8 It is therefore recommended that Policy and Resources
Committee's attention be drawn to the circumstances and action
in paragraphs 2.2 to 2.7.
3.0 Base Budget 1991/92
3.1 The base budget has been compiled to match the volumes of
service included in the original budget for 1990/91 adjusted
for:
* the full cost of inflation to November 1990;
* the revenue effects of the capital programme (excluding
capital financing charges) in respect of schemes started
prior to 1990/91;
* the full year effects of approved policies introduced part
way through 1990/91 and included in the original budget;
* changes in income volumes;
* salary increments;
* changes in pupil and student numbers.
(This definition of the starting point of the budget is the one
used last year and excludes any general growth in demand or
perceived needs).
3.2 The total base budget completed on these principles was
reported to the Policy and Resources Committee to assist in
the preparation of guidelines. For the Education Committee,
the base budget amounts to £465.4m.
4.
3.3 The following table shows the progression from the original
current expenditure budget for 1990/91, which was prepared at
prices ruling in November 1989, to the base budget for 1991/92
at November 1990 prices. Provision for inflation arising
after this date, will be made centrally by the Policy and
Resources Committee.
Current Expenditure £'000
Original budget 1990/91 - November 1989 prices 412,971
Inflation from November 1989 to November 1990
prices (an average of 10.4%) 43,031
_______
Original budget repriced to November 1990 prices 456,002
Other variations (see paragraph 3.9) 9,427
_______
Base budget 1991/92 465,429
To the base budget must be added the following
item which is not within the direct control of this
Committee:
Mandatory Awards 53,500
_______
518,929
_______
Excluded at this stage are recharges from Policy and Resources
Committee for: central administration; repair, maintenance and
decoration of buildings; and capital financing charges, which
will be added later after consideration by the Policy and
Resources Committee.
3.4 Variations, other than inflation between the 1990/91 original
budget and the 1991/92 budget are explained in paragraph 3.9
of this report and are summarised in Appendix 1 (pink sheet).
3.5 A summary of the base budget over the various divisions of
service appears at Appendix 2 (blue sheet). The detailed
budget on the same basis appears as Appendix 3 (green pages)
together with appropriate commentary and statistics.
Inflation
3.6 It will be seen from the table in paragraph 3.3 that inflation
since November 1989 on the original current expenditure budget
has increased the cost of services provided by this Committee
by £43.0m (10.4%).
5.
3.7 Pay costs next year will increase by £34.3m (10.3%) due to the
effect of awards agreed up to November 1990. This sum
includes the cost of pay awards to School Teachers (9.3%),
APT&C staff (9.4%) and Manual Workers (9.4%). It also
includes the FE Lecturers Pay Award for both 1989 and 1990 at
9.0% and 9.15% respectively.
3.8 The effect of price increases on expenditure votes between
November 1989 and November 1990 amounts to £12.4m (9.7%),
which is offset by increases to income of £3.7m (7.6%)
resulting in a net increase for non-pay votes of £8.7m
(10.9%). The following major items were significantly
different from the average:
%
Electricity 7.6
Gas (average) 7.0
Rates 20.6
Fuel Oil 31.5
Home to School Transport 12.9
Educational Supplies 6.3
Provisions 6.9
Examination fees 7.9
Payments to Independent and Voluntary Bodies
(chiefly for special school places) 11.0
Variations from the Current Year's Budget
3.9 In addition the base budget has been increased by £9,427,000 at
constant prices or 2.1% compared with 1990/91. The principal
changes are referred to in the following paragraphs (with the
summary in Appendix 1).
(a) Savings not continuing into 1991/92 £'000
Savings at this level were required and achieved
in 1990/91, but were of a "one-off" nature and as
such will not continue into 1991/92 +1,162
(b) Variations in staffing costs
The net effect of pay increments to teaching and
non teaching staff offset by savings from staff
turnover +2,994
(c) Variations due to changing numbers of pupils
and students
i) Allowance has been made in the base budget
for an average of 60 additional teaching posts
in respect of the estimated increase in the
number of pupils in primary and secondary
schools. Associated costs, including
educational supplies and home to school
transport, have been adjusted accordingly +1,186
6.
£'000
ii) Further Education Colleges student enrolments
are less predictable and therefore additional
provision has been included on the basis of
variations in actual student numbers between
the academic year 1988/89 and 1989/90 which
show an increase from 19,319 to 20,447 based
on full time equivalents. Additional resources,
similar to schools, have been included to cover
lecturing staff and the other associated costs +1,554
iii) The trend of increasing student enrolments is
reflected in the number of students seeking
discretionary awards. The budget provides
resources on the basis of the level of
participation in the current year + 305
(d) Expenditure variations equal to changes in
Government Grant
The Education Support Grant and Teacher Training
Grant schemes have been combined to form the Grants
for Education Support and Training (GEST). The budget
reflects a significant change of emphasis from
in-service training to education support which, in
cash terms, is in the region of £2.2m. The net effect
of the transfers results from changes in the
individual schemes supported - 154
(e) Full year effect of new policies introduced
in 1990/91
i) LMS - reflects the full year cost of additional
non teaching staff costs in primary schools
associated with the phase II implementation.
(This was accepted as one of the County
Council's corporate priority items in 1990/91) + 601
ii) Other - mainly in respect of 70 additional
teachers for non-contact time in primary
schools as part of the introduction of the
national curriculum, together with the cost
of the measures designed to assist in the
recruitment and retention of teachers + 789
(f) Other Variations
i) The revenue costs in 1991/92 of capital
schemes started prior to 1990/91 including
Hatch Warren Junior, Bordon Whitehill and
the additional community facilities at
Connaught, Wavell, Mill Chase and Horndean
provided in conjunction with District
Councils + 324
7.
£'000
ii) Non-recurring income items -
* The Policy and Resources Committee
agreed that the estimated loss to be
incurred by the school catering service
in 1989/90 should be returned to the
Education Committee in 1990/91 from
Hampshire Caterers' profits. This was
to be a "one-off" adjustment and does
not continue into 1991/92 + 326
* The original budget for 1990/91
erroneously assumed that excess
overheads repaid by the Hampshire
Works Organisation in 1989/90 in
respect of an overcharge for grounds
maintenance in 1988/89 would continue + 270
iii) Net savings resulting from the competition
legislation mainly in respect of cleaning
contracts in the south west and south east.
The base budget only reflects those contracts
let up to and including the current year - 406
iv) Increased costs on home to school transport
resulting from variations in the number of
school days falling in successive
financial years + 548
3.10 In summary, therefore, the base budget contains £43m for
inflation over the last year and £9.4m (or 2.1% of the budget)
for committed items within the base budget rules, mainly the
effect of pupil and student number changes, increments and the
reinstatement of the savings made in 1990/91.
4.0 Current commitments not contained in the base budget total
4.1 This section describes continuing commitments of some £3.6m
which could be set against the Policy and Resources growth
figure of £3.8m. Given the needs of LMS and national
curriculum, however, further savings are proposed to direct
money to those priorities.
4.2 The current commitments are:
(a) Primary and Special School Secretaries 414
The full year cost of the scheme for regrading
of secretaries of primary and special schools
was met by virement during the current year
to supplement the amount in the base budget
and a commitment was made to give the highest
possible priority to meet the extra costs of that
improvement in 1991/92.
8.
£'000
(b) Special Educational Needs 2,000
A major factor in the £3.3m overspend in
the current year's budget was a sharp
increase in the number of pupils for whom
additional resources were required to meet
statements of special educational need
under the 1981 Education Act. An additional
£1.7m is required to maintain the current
levels of support in 1990/91. The County's
Special Needs Review presents alternative
ways of using special needs resources but
the necessary changes will take time.
Reduced costs elsewhere to fund support in
Hampshire special and mainstream schools cannot
be anticipated in 1991/92. The current projection
of special needs cases suggests the additional
cost next year will be £2m.
(c) Redundancies and Premature Retirements
in Schools 1,000
The switch from central to delegated
responsibility for making decisions on
staff redundancy resulted in a greater
increase than expected in 1990/91.
There should be fewer new cases in
1991/92. A sum of £500,000 is, however,
needed to meet the continuing costs of
enhanced pension payments resulting from
this year's increase. An additional
£500,000 is required to cover the estimated
level of new cases in 1991/92 _____
3,414
(d) The revenue consequences in 1991/92 of
the capital programme. (To be confirmed
once the improvement and maintenance
programmes have been finalised).
176
3,590
4.3 If these items were set against the new growth guideline of
£3.8m there would be little available to meet urgent LMS and
national curriculum needs. Hence compensatory savings are
proposed which would also demonstrate to Policy and Resources
Committee the efforts being made to redeploy resources towards
the Committee's highest priorities.
5.0 New Growth Proposals
5.1 1991/92 will bring additional consequences arising from the
Education reforms with further major steps to implement LMS
and the national curriculum.
9.
Full Year Cost
£'000
5.2 LMS Systems and Support 800
£1.4m scaled down to £800,000
The number of schools with full delegated financial
responsibility will rise from 124 now to 391 in April 1991.
During 1991/92 a further 135 schools will be preparing for an
April 1992 start. They need full and effective support
through the provision of adequate staffing improvements,
training, support and computer equipment and systems. The pace
and scope of development are determined by the statutory
scheme approved by the Secretary of State. Hampshire's
decision to extend delegation to all schools, including the
smallest, is no longer optional as central government is
making this a requirement. Central government will provide
support through GEST (Grants for Education Support and
Training) for training governors and school staff
(£2,343,000), and limited staffing on a short-term basis.
This will, however, not meet all needs. £400,000 is provided
in the draft capital programme for the balance of computer
equipment required. There are other revenue costs in providing
essential staff support and to meet the increased use of
information systems in the schools. The amounts required
total £1,405,000 in a full year. Costs could be reduced to a
minimum of £800,000 in 1991/92 for instance by not making
provision for computer equipment renewal whilst covering the
running costs of the additional systems.
5.3 National Curriculum 3,000
£11m scaled down to £3m
5.3.1 The introduction of the national curriculum intensifies in
1991, with more subjects, stages and assessments coming in.
Grant support through GEST is available: £1,013,000 for the
implementation of assessment; and £2,605,000 for the basic
curriculum (covering training for teachers and £3.50 per pupil
for equipment, books and materials). £762,400 is provided for
information technology. Further details are contained in the
separate report on GEST. Government support is however
largely of a "pump priming" nature and additional County
resources on a significant scale are also required to match
and add to that grant. Appendix 6 includes a detailed
discussion of the currently assessed needs and proposes some
phasing of costs, particularly for secondary schools, this
allows priority in 1991/92 to be given to the primary sector;
especially for non-contact time which is already available in
secondary schools. Appendix 6 also provides justification for
a significantly larger sum to assist national curriculum
developments.
10.
5.3.2 Within the £3m remaining growth the priorities would be
£'000
PRIMARY
i) Teachers' Planning, Preparation and
Assessment Time 1,090
"Non contact time" is of such significance
to the successful introduction of the
national curriculum that it should remain
as the highest priority. This represents an
additional 80 teaching posts, distributed
through the LMS formula.
ii) Small Primary Schools 180
This would provide an additional half day of
teaching time, for each school with fewer than
150 pupils and is only modest support.
iii) Equipment 880
This would be about £6.50 per pupil and would
meet about 25% of the additional needs
identified for general equipment. _____
2,150
SECONDARY
i) Teachers 550
Provision of resources equivalent to 40 posts,
distributed through the formula, would allow
a little more flexibility in the payment of
staff.
ii) Equipment 300
A supplement of just over £3 per pupil
As in the primary phase there is no
specific provision for greater investment
in computers and other IT equipment
_____
3,000
_____
5.4 These growth proposals would cost £3.48m in 1991/92, as
against £3.8m in a full year.
11.
6. The Effect upon Schools Budgets
6.1 This report has assumed as far as possible that the budget for
schools will be protected.
6.2 In this context it should be remembered that the additional
resources spent on statemented pupils and redundancies and
early retirements (para. 4.3) have been added to the overall
general schools budget, without affecting the individual
school's formula allocated budget share. It could be argued
that the overall amount allocated to schools by formula should
be reduced by that amount. Those sums have, however, been
spent where they were needed whereas a reduction in formula-
distributed money would affect all schools and would merely
counteract the growth proposed in para 5.3. It is therefore
not recommended.
6.3 The schools' budget also benefits from its share of inflation
and increases in the base budget. This includes provision for
additional pupil numbers, staff increments, the full year
effect of new policies in 1990/91. In addition £830,000 was
held back in 1990/91 from educational supplies provision in
schools, and £300,000 from sums earmarked for curriculum and
other developments. The total of £1,130,000 could be held
back pending resolution of the final 1991/92 budget position.
This would not involve a reduction in resources allocated to
schools compared with 1990/91, and it may be prudent to
reserve this sum to meet any unforeseen commitments which
might arise.
6.4 The budget for primary and secondary schools will, therefore,
already see the following increases, including the £3.8m new
growth which it is recommended should be added in para. 5.1.
£'000 £'000
* 1991/92 base budget additions
Inflation (additional inflation above
the level in the revised budget
1990/91) 4,700
Growth - pupil numbers 1,200
- increments 2,100
- extra days 548
- full year effect of new policies 1,447
5,295
Total base budget growth 9,995
* 1991/92 Commitments
Special needs 2,000
Redundancies and early retirements 1,000 3,000
* New growth for LMS and national
curriculum 3,800
Total increase 16,795
12.
6.5 In summary therefore the total increase for primary and
secondary schools is estimated to be some £16.8m or
approximately 4% of general schools budget. Hence schools
will see a significant growth in the sums available through
the formula compared with reductions in other parts of the
Education budget. In addition provision will be made for
inflation after November 1990 (some £25.3m based on an overall
8% inflation provision) giving schools a total cash increase
of £42m.
7. Savings within the base
7.1 Savings are required:
£'000
* to meet the carry forward of the projected
overspending for 1990/91; and 3,300
* to meet the continued trends and the effect of
decisions taken in 1990/91 as set out in para.4,
but which are commitments and high priorities
within the overall schools' budget. 3,600
_____
6,900
7.2 Further savings would be required if it were thought desirable
to provide additional resources for LMS and the national
curriculum, over and above the £3.8m guidelines described in
paragraph 5.
7.3 This position also assumes that
* budgets for statements and premature retirements are
controlled to avoid increases beyond the budgeted figures;
* other areas where there is increased need e.g. the youth
service are held at their present level;
7.4 Options for savings can be identified by looking at:
a) budgets outside the aggregate schools' budget (i.e. that
amount of the budget allocated directly to schools by the
LMS formula). Details are included in:
(i) Appendix 2 which summarises the base budget over
divisions of service, and shows the size of budget heads
(special, further education etc.) outside the general
schools budget;
(ii) Appendix 5 (the General Schools Budget) which lists those
items within the primary and secondary budgets, but which
are outside the sums allocated to schools by formula
(i.e. discretionary and mandatory exceptions derived from
the Section 42 statement which are within the control of
13.
the Education Committee. All these "exceptions" to the
budget already delegated to schools are under review so
that, subject to the Education Committee's decisions in
July, more resources can be moved into school budgets in
1992/93. Details of these are also given in Appendix 5.
b) statistics from the Audit Commission show differences from
the family average of similar LEAs. Great care must be
taken with this, because of the inherent difficulties of
comparison, and because the latest available figures are
based only on 1989/90 estimates (and changes have occurred
since then). They indicate that Hampshire is spending at a
relatively high cost level on: special education (subject to
special needs review but mainly in the costs of placements
in independent schools); Further Education (especially
Adult
Education); Catering (especially the subsidy per pupil meal
-prior to the last two price increases); and in some of the
smaller services (such as the Careers Service, Inspection,
and Psychology).
7.5 Last year's budget strategy began to address relative
priorities within the education service, these proposals
extend and accelerate that policy.
7.6 Savings options totalling £7.4m in 1991/92 (£9.35m in a full
year) are described in this section, and it will be for the
Committee to determine which of these options should be
pursued.
7.7 There is no easy way to achieve savings of this order. They
cannot be achieved by management action or efficiency alone,
but require changes in policy. Furthermore the impact on each
area considered has to be large in proportion to it's budget
because less than 20% of the Education Committee's expenditure
lies outside schools' and colleges' budgets.
7.8 Options for savings are set out below giving the figures for
1991/92 (with full-year effects in brackets). In order to
achieve sufficient savings in 1991/92, the necessary measures
will produce larger effects in subsequent years. Where full-
year effects are less than the 1991/92 savings, these are "one
off" for 1991/92.
i) Discretionary Awards £1,000,000
(Full year effect £4,000,000)
The 1991/92 base budget for discretionary awards is
£5,360,000. Of this sum, £3,500,000 is in respect of
continuing students and the summer term payments for all
students. The balance of £1,860,000 is for new
discretionary awards to be offered in September 1991.
This comprises awards which would be expected to be made
in September 1991 for:
14.
£
Performance Arts 240,000
Post Graduate Courses 180,000
Open University 45,000
Minor Awards 580,000
Access Courses 605,000
All Other Awards 210,000
_________
1,860,000
NB Minor Awards are given at the same rate as Secondary
Maintenance Grants and any variation in one should also
affect the other.
Two approaches are described, the first saves £500,000,
the second £1 million and the latter is the one assumed
in this report.
(a) The Education Policy Sub-Committee on 14th November 1989,
as part of the Budget Strategy report, agreed to changes
in the Discretionary Awards policy which was expected to
achieve savings in the 1990/91 financial year of £485,000
and in a full year of £1,250,000 and these sums would
have been available for redistribution to schools and
colleges.
There was an 8% increase in students eligible for awards
in September 1990 and within the revised estimates for
the 1990/91 financial year an additional allocation of
£300,000 was made to cover the cost of these students. A
similar sum has been included in the base budget for
1991/92.
Changes in the types of course attended by students and an
increase in the number of students whose parents are on
income support mean the expected savings cannot be made
without reinforcing the policy.
The expected additional saving from the budget strategy
will amount to £100,000 in 1991/92 instead of the
expected £500,000. The 'reinforcement' referred to above
would mean cash limiting the budget for performing arts,
post graduate and access courses and adjusting the
exercise of the LEA's discretion in order to achieve the
additional £500,000 originally expected.
(b) A saving of £1,000,000 in 1991/92 could be achieved,
by offering assistance only to new students requiring
either minor awards or access courses. Continuing
students would be supported to the end of their
15.
courses. Support for new applicants in performance arts,
post graduate courses etc. would cease. Other savings
would restrict all the other categories of awards.
Support for minor awards and access courses could be
continued on the following basis:
Minor Awards - limiting support to those students (or
their parents and spouses) who are on income support.
Such payments would be for up to £540 for maintenance
(i.e. the same level as in 1990/91 without any inflation
addition) plus the payment of tuition fees (at the LEA
approved minimum rate where applicable)
Access Courses - the support for students would be limited
to £500,000 and the responsibility for administering this
support would be delegated to Hampshire Colleges
currently approved for such courses in proportion to
existing numbers of grant-aided students. This sum would
appear as a discretionary exception in the Colleges'
Budget for 1991/92 and 1992/93 and, thereafter, would be
distributed to all Colleges through the LMC formula.
ii) Grounds Maintenance £200,000
(Full year effect £200,000)
Detailed discussions with the Hampshire Works Organisation
are being held to establish this level of saving in the
budget they manage.
iii) F.E. Colleges £1,000,000
(Full year effect £300,000)
(a) The value of the contract with Southampton Institute
of Higher Education (SIHE) for the purchase of
Further Education courses continues to fall as
courses are transferred to Hampshire Colleges. In
1991/92 the contract will show a saving of £850,000.
Of this, £550,000 will need to be allocated to
other Hampshire Colleges which will be running these
courses and to other areas of provision for printing
education. A net saving of £300,000 will occur due
to reduced numbers.
(b) A sum of £266,000 was held back in 1990/91 and not
distributed to colleges, as a contribution towards
the savings required. A similar amount could be
withheld in 1991/92 , but with consequent
restrictions on development.
(c) A sum of £1,554,000 has been included in the base
budget to reflect an increase of 1100 students
between 1988/89 and 1989/90. A further increase in
student numbers has occurred in September 1990 but
this will not be taken into account until the base
budget for 1992/93 is prepared because information
on enrolments for the full 1990/91 academic year
will
16
not be available until later. This large increase in
student numbers has created significant problems for
colleges and without some additional money for
1991/92 they will have difficulty meeting the
demand. Colleges have achieved the previous
increases in student numbers by improvements in
efficiency i.e. improvements in the Student Staff
Ratios from 9.5:1 in 1986/87 to 11.3:1 in 1988/89
(last complete year's figures). The figure for
1989/90 is likely to be 12:1 compared with the
national assumption of 10.9:1 in 1991/92 indicated
by the Secretary of State. This increase in
efficiency and the enrolment of additional students
has occurred at the same time as colleges have
successfully managed the introduction of devolved
budgets and the significant changes required through
the Local Management of Colleges
for which no additional resources have been
allocated. The suggested saving of £1m would
consist of the continued reduction in numbers on the
PCFC contract (£300,000), the continued holdback of
£266,000 and a further holdback of £434,000. (The
£700,000 of holdbacks could be reinstated in
1992/93). Colleges would still have an overall
increase of £1,120,000 in 1991/92.
iv) Adult Education £1,250,000
(Full Year Effect £2,000,000)
The total estimated net expenditure on adult education in
freestanding and college-based institutes for 1991/92 is
some £4,000,000. This includes the support given for
post 16 basic education, vocational courses, and
organisations such as the Pre-school Playgroups
Association
which could be seen as more in need of financial subsidy
by the LEA than non vocational education. Later in this
section the first group are described as key services.
If the financial support for non-vocational adult
education were to be withdrawn from 1991 a saving of
approximately £1,250,000 could be achieved in the 1991/92
financial year rising to £2,000,000 by 1993/94 and
subsequent years.
Such a decision would involve the closure of the 6 free-
standing adult education institutes and the withdrawal of
financial support for non-vocational education from the
six college-based institutes. To ensure that facilities
for basic education, vocational education and other key
services supported within the existing budget continued,
it would be necessary to retain a small team to allocate
and monitor the necessary resources in each division and
to relocate staff delivering those services (such as
adult basic education co-ordinators) from the free-
standing institutes to other establishments. The savings
suggested are net of such provision.
17.
A report on the management of the closure of the free-
standing institutes and the establishment of the
necessary structures to ensure the effective continuation
of the key elements of the service would be presented to
the next meeting of the Policy Sub-Committee. In essence
this option proposes that the LEA should subsidise only
those key services and that non-vocational education
would be provided by colleges and schools at their
discretion and at market cost.
v) Careers £200,000
(Full Year Effect - £300,000)
Within the budget strategy, a restructuring based on a
phased saving of up to £300,000 (10%) is reported
elsewhere in the agenda. The proposal here would
accelerate the savings to £200,000 in 1991/92 rising to
£300,000 in a full year.
vi) Revenue Contributions to Capital Outlay £1,000,000
(Full Year Effect - Nil)
Further slippage of schemes yet to start in this year's
(i.e. 1990/91) programme would be required to achieve
such a reduction in revenue contributions in 1991/92.
Deferral of one or more major schemes would be required.
This saving would be possible for one year only, if the
committee is not to effect seriously a capital programme
already under severe pressure.
vii) Cleaning Contracts £500,000
(Full Year Effect - £500,000)
Savings will accrue to the County as a result of further
tranches of competitive tendering and subject to Policy
and Resources approval, this could be included as a
saving on education expenditure.
viii)Curriculum Support Services to Schools and
Colleges £200,000
(Full Year Effect- £300,000)
A review of the advisory service is currently the subject
of consultation with schools, colleges and staff unions.
The main choice for 1992/93 will be between providing
services free of charge, or delegating the money in the
formula for schools and colleges to purchase the services
they choose. Reducing the service now would therefore
reduce the money available for delegation, with no cash
benefit to schools and colleges. Reductions would also
reduce the quality of service. Savings would be offset
by redundancy costs, but £200,000 would be achievable in
1991/92, rising to £300,000 in later years.
18.
ix) Transport 16+ £300,000
(Full Year Effect - £500,000)
For the current year the Education Committee decided to
increase the qualifying distance for assistance with
transport costs to sixth form or college from 3 to 4
miles but decided against the application of charges to
students. Other LEAs make a charge for transport to FE
colleges and some also to post 16 students in schools.
In Hampshire any system would have to apply to full time
post 16 students in sixth form, tertiary or FE Colleges
and schools and would be costly to administer. Charging
would be seen as a disincentive to students to remain in
education and would militate against the County's
general policy of encouraging participation beyond the
compulsory phase. Colleges argue also that the County
should agree a medium-term plan for post 16 provision
before reconsidering transport subsidies.
A different approach would be to withdraw free transport
for all post-16 students living over four miles from the
appropriate college or sixth form and make cash grants to
the students as a contribution towards their transport.
This would open up fresh opportunities and requires work
with college principals on contract transport, scales of
grant etc. However it is likely that £300,000 could be
saved in the first year. A report on such a scheme will
be brought to the next meeting of the Policy Sub-
Committee.
x) Catering £500,000
(Full Year Effect - £500,000)
The cost of providing the present catering service net of
income is £8.5m of which £1.1m covers special schools
provision and £3.4m covers the client side costs for
provision of premises, equipment, facilities for children
who bring their own lunches, monitoring performance,
school administration, transport costs of collection and
banking of dinner money. The current subsidy for free
and duty meals is £4m.
To achieve a substantial saving, the drastic action of
moving to a free meals only service would have to be
considered. Whilst many question whether the education
budget should subsidise more than the statutory minimum
for pupils having free meals, others value the
educational, social and dietary benefits of the
traditional meal. Recently a number of counties,
including Buckinghamshire, Dorset and Somerset decided to
reduce provision to the minimum and others including
Northamptonshire are considering it. Reduction to a free
meals sandwiches only service in the primary and
secondary sectors could allow savings of £1m or more, but
redundancy costs would have to be met from at least the
first year's savings.
19.
An alternative approach is that currently planned when the
County contract is renewed in August 1993. This would
allow money to be delegated to schools to take their own
decisions on contracts. In October 1990, the Policy Sub-
Committee established a working group of officers and
headteachers to investigate possible approaches. A range
of options, has already been prepared, and urgent
consideration is being given to agreement with Hampshire
Caterers to bring forward the delegation date to 1992.
A more immediate and realistic option than to break the
contract and provide sandwiches only to free meals pupils
is to set a savings target for the contractors. A target
of £500,000 could be set, recognising the difficulties,
including the redundancies, Hampshire Caterers would
face.
However there is no agreement with Hampshire Caterers at
this stage on how this could be achieved, and it could
have a detrimental effect on their profitability and
requires more analysis and negotiation.
xi) Field Study and Outdoor Centres £250,000
(Full Year Effect (£750,000)
This requires withdrawing subsidies on field study and
outdoor centres, including Calshot, over, say, a three
year period. (The total subsidy is approximately
£750,000). There could be an impact on the Recreation
Committee if the centres did not recoup the money from
increased charges to Hampshire schools and colleges.
Like other areas of central expenditure, this has been
part of the LMS review, aimed at delegating more funds to
school budgets.
xii) Recruitment Incentives £1,000,000
(Full Year Effect - Nil)
Priority was given in 1990/91 to provide a budget for
recruitment incentives for teachers and lecturers at a
full year cost of £1.7m. The scheme is not delegated
and is used at the discretion of officers in response to
requests. Economic recession has reduced pressure from
outside education but many types of teacher are still
difficult to recruit. This proposal would retain support
only for applicants to posts of exceptional difficulty
but as such may be easier to administer.
The saving could be considered for reinstatement or
expansion next year and allocated directly to schools and
colleges for them to spend on relocation incentives or on
higher salaries within the new local flexible scales.
20.
7.9 These options are greater than the £6.9m required as a minimum
to apply the Policy and Resources Committee guidelines. It
may also be necessary to aim at a higher target than that
required because of the difficulty in implementing changes on
this scale. Any surplus savings could be redirected to higher
priorities. Savings total £7.4m in 1991/92 and more than
£9.3m in a full year if all were selected and achieved. To
approach a higher target would require more drastic measures
and would be unrealistic.
7.10 Further reports are required in a number of cases and the
Committee is asked to determine which options should be
pursued.
8.0 Summary of growth, commitments and savings
8.1
Part Year Full Year
Effect Effect
1991/92
£'000 £'000
Additional Resource Requirements
Carry forward of 1990/91 Overspend 3,300 -
Current Commitments Outside Base Budget 3,590 3,674
New Growth Proposals 3,480 3,800
10,370 7,474
Less Policy and Resources Growth
allocation 3,800 3,800
_____ _____
Savings Required 6,570 3,674
8.2 Summary of Savings Options
The options for savings put forward in this report are:
1991/92 Full Year
£'000 £'000
Discretionary Awards 1,000 4,000
Grounds Maintenance 200 200
Further Education Colleges 1,000 300
Adult Education 1,250 2,000
Careers 200 300
Revenue Contributions to Capital 1,000 -
Cleaning Contracts 500 500
Curriculum Support Services 200 300
Transport 16+ 300 500
Catering - target setting 500 500
Field Study and Outdoor Centres 250 750
Recruitment incentives 1,000 -
7,400 9,350
21.
8.3 Options for savings totalling £7.4m in 1991/92 have been put
forward for the Committee to make choices. Any savings chosen
in excess of the minimum requirements would be available for
redeployment to higher priority areas.
8.4 Appendix 4 details proposals/options for the consideration of
the Committee. This shows for each item, the potential
cost/saving in 1991/92 as well as the full year effect and
staffing implications.
9.0 Grant Maintained Schools
9.1 The base budget has not been amended to reflect the fact that
one school has grant maintained status, pending final
determination by the DES. In presentational terms the
financial effect of this action will be neutral with payments
to the grant maintained school being matched by corresponding
reductions in the various budget headings. The financial
impact of grant maintained schools is covered elsewhere on the
agenda.
Item not forming part of the Current Expenditure Budget
10.0 Mandatory Awards
10.1 The estimate totals £53.5m which is an increase of £13.6m from
the original estimate. This reflects inflation of £8.5m,
primarily from a rise in tuition fees from £1,600 to £2,100.
There are also more students eligible for such awards (up from
14,670 to 16,077). The total contribution to the student is
shared between the parent and the County Council according to
a nationally determined income scale: the County Council has
no discretion over whether or not such an award should be
given but from 1st April 1990 central government have met 100%
of the cost from specific grant.
11.0 Manpower Numbers
11.1 The total average manpower numbers in the base budget is 21382.
This compares with the original estimate for 1990/91 of 21526.
The main contributory factor in the fall of 144 is a reduction
of 500 arising from the change to contract cleaning in
educational establishments. This is offset by an increase of
57 in the number of special needs assistants in special
schools and an additional 150 staff to reflect the increase in
pupil and student numbers in schools and colleges and an
increase of 140 in the number of ancillary staff in primary
schools arising from the implementation of LMS.
11.2 The manpower implications associated with the proposals for new
growth are shown in Appendix 4.
22.
12.0 Recommendations
It is recommended that:
i) the attention of Policy and Resources Committee be drawn
to the circumstances set out in paras. 2.2 to 2.6 and
the action taken in para. 2.7 affecting the 1990/91
budget, and especially the savings of £2.2m achieved, and
the redirection of a further £715,000 to higher priorities
from the "Budget Strategy".
ii) the Education Committee continues the action
taken in 1990/91 to keep the overspend to a minimum.
iii) the base budget for 1991/92 as detailed in Appendix 3 be
approved for submission to the Policy and Resources
Committee;
iv) options for savings be determined from para. 7 to meet
a) £3.3m carry forward of projected overspending from
1990/91
b) £3.6m minimum redeployment of resources within the
base to meet the continued high priority items set
out in para. 4.
v) items set out in para 5 and Appendix 4 be submitted to
Policy and Resources Committee as the Committee's high
priority items within the budget guidelines;
vi) Additional full-year savings which arise as a consequence
of action to achieve the 1991/92 targets be available for
deployment by the Education Committee in future years.
vii) the attention of the Policy and Resources Committee be
drawn to the significant impact that these decisions will
have and request that they make available additional
resources in recognition of the redeployment within the
base budget.
TM/IH149 - January 1991
23.
APPENDIX 1
EDUCATION COMMITTEE
BASE BUDGET 1991/92
SIGNIFICANT VARIATIONS IN CURRENT EXPENDITURE
Major variations between the original budget 1990/91 and the base
budget for 1991/92 contributing to the increase in expenditure of
£9,427,000 (2.1%) are set out below:
£'000 £'000
Savings required to be made in 1990/91 1,162
LESS continued into 1991/92 -
_____
- "one off" savings not repeated in 1991/92 +1,162
Increments offset by savings from staff turnover +2,994
Net increase in response to changes in pupil and
student numbers:
Schools +1,186
Further Education Colleges +1,554
Discretionary Awards +305
Expenditure variations equal to changes in Government
Grant -154
Full year effects of new policies in 1990/91 original
budget +1,390
Revenue costs of capital schemes started prior to
1990/91 +324
Non-recurring income item in respect of return of
profits from Hampshire Caterers +326
Non-recurring income item in respect of "one-off"
adjustment from Hampshire Works Organisation re
grounds maintenance +270
Net savings resulting from competition legislation -406
Increased expenditure on home to school transport
as a result of the change in number of school days +548
A table appeared at this point in the Report which could not be
displayed properly on the Computer. It has therefore been
excluded from Hantsnet and STAIRS.
For further details contact the owner of the following
logon who submitted this document: SCRMXN
Appendix 6
Revenue Budget 1991/92
The Cost of Introducing the National Curriculum
This summary reflects research and discussions involving
headteachers, officers and inspectors during the past year.
Comments made directly by the headteachers' and principals'
groups are attached.
1. Additional Resources in Primary Schools
Some costs are short-term to cover, for example, training and
materials to start off new assessment arrangements. Central
government has made some recognition of those needs by
meeting part of such specific costs through the GEST scheme
(Grants for Education Support and Training). Other needs
identified are for resources necessary to ensure successful and
sustained provision for the national curriculum. Further
needs, such as for support staff, have not yet been fully
considered.
2. Teachers in Primary Schools
(a) Planning, Preparation and Assessment
Primary school teachers are required to plan, prepare and
undertake assessment of children working in groups and
individually, but little provision is made for them to have
time in school other than with a full class. In 1988/89 and
1989/90 the need for "non-contact time" was recognised
through a phased budgetary policy which would require
100 additional posts in 1991/92. This would increase the
allocation of staffing resources to primary schools to
about 4% of teachers' time, equivalent to just under half
an afternoon per week on average. The cost would be
£1,360,000 in a full year. This would not improve the
basic provision which is made on the existing policy of
notional class sizes of up to 34 (or 30 in reception
classes).
(b) Small Primary Schools
Headteachers in schools with fewer than 150 pupils on roll
normally need to undertake responsibility for a class.
Preparations, planning and assessment still have to be
managed and the current resources intended to release
the head from class teaching duties for up to two days a
week leave the head under pressure which would be
relieved by providing for a further day. £360,000 would
be required from April 1991 for the 130 smallest schools
(equivalent to 26 posts).
(c) National Curriculum Across the Ability Range in Primary
Schools
The LMS formula recognises that all schools will at some
time have children with learning difficulties who will
require help
in order to ensure full access to the national curriculum (albeit
not necessarily to require a "statement" under the 1981
Education Act). The Committee had already established an
intention to phase in additional posts, the next primary
instalment being 30 posts, costing £410,000 from April 1991.
3. General Equipment for Primary Schools
Books, basic equipment and other materials require replacement
and updating at varying rates. The establishment of science
and technology as compulsory subjects creates new demands.
Headteachers have worked with officers and inspectors to
estimate the cost of a programme which would bring each
primary classroom up to a level over a five year period
sufficient to sustain the national curriculum. The costs would
be:
Key Stage Cost per Pupil (£)
1 (up to age 7) £48
2 (up to age 11) £50
3 (up to age 14 - part in middle schools £52
The current allocation within the LMS formula is £25.34 per
pupil for stages 1 and 2 and £39.00 for stage 3. The extra
money required would make it possible to maintain a 5 year
rolling replacement programme. The full year cost would be
£3.34m.
4. Information Technology (IT) in Primary Schools
Information technology is expected to span the entire
curriculum. Equipment purchase has involved education
support grants and private funding, but a secure replacement
programme will be needed. Guidelines suggest at least one
computer kit per class, with additional machines to provide
some flexibility. A 5 year replacement programme for one kit
(about £1,500) per 30 pupils would be a modest approach in
view of the rapid changes in this field. It would cost £1.33m
in a full year to provide a rolling programme for future
renewal of equipment.
5. Summary of Costs (Primary)
£000 (full year)
Teachers' planning and assessment time 1,360
Extra staff for small primary schools 360
Helping pupils with learning difficulties 410
General equipment 3,340
Information Technology 1,330
_____
6,800
6. Additional Resources in Secondary Schools
Headteachers are still reviewing the implications in detail as the
precise requirements for key stages 3 and 4 become clearer.
Some matters can, however, be considered, particularly where
they relate to resource needs already identified before the
additional costs of the national curriculum can be fully
assessed. The recent flexibility indicated by the Secretary of
State does not reduce the need for resources, particularly for
the under 14s who will be required to follow the full range of
subjects.
7. Teachers in Secondary Schools
(a) Curriculum led Staffing
The current allocation of staffing resources to secondary
schools is based on a curriculum-led formula phased in
from 1987. That formula was not fully implemented but
was introduced for year 10 and 11 pupils and extended to
year 9 in 1988. To bring it in completely for the under
14s would require the equivalent of 200 posts at a full
year cost of £2.70m. The formula provides the best
current measure of how many teachers are needed to
support a full secondary curriculum. Phasing the
necessary improvements over 3 years would require
£900,000 in 1991/92, equivalent to less than one teacher
per school on average.
(b) National Curriculum Across the Ability Range
As discussed for primary schools, a phased programme was
established by Committee, which would require a further
instalment for secondary schools of 10 posts, costing
£140,000 from April 1991.
8. General Equipment for Secondary Schools
Detailed work is still being undertaken. Secondary heads
recognise the outstanding and pressing needs in primary
schools and understand that committee may not be in a position
to make a full response at this stage. Their work is aimed
mainly at providing a full picture for 1992. Work already done
shows, however, that a basic £3.70 per pupil would be needed
in 1991/92 as a "pump primer" to begin a sustainable
programme of upgrading and replacement of books, equipment
and material for key stages 3 and 4. The full year cost would
be £300,000.
9. Information Technology (IT) in Secondary Schools
The requirements for secondary schools are even more
demanding than for primary schools. One kit is needed per 12
pupils, requiring for a 5 year rolling replacement programme
£2.05m.
10. Curriculum Support Staff
Technicians for laboratories, workshops, reprographics and
other support facilities make teaching much more effective. An
initial assessment, providing one to two extra support staff
per school on average would require £1.5m. If phased over 3
years, the 1991/92 cost would be £500,000.
11. Summary of Costs (Secondary)
£000
Teachers: Curriculum led staffing, first phase 900
of three
Helping pupils with learning difficulties 140
General equipment 300
Information technology 2,050
Curriculum support staff, first phase of three 500
_____
3,890
12. Summary (Primary and Secondary)
Primary Secondary Total
£000 £000` £000
Teachers 1,360 900 2,260
Small primary schools 360 360
Helping pupils with learning 410 140 550
difficulties
Equipment (including computers) 4,670 2,350 7,020
Lab. technicians and other 500 500
support staff _____ _____ _____
6,800 3,890 10,690
In order to achieve the improvements in secondary staffing
without phasing, the total would rise from £3,890 to £6,690,000
13. Central Government Grants (GEST)
The allocations for Hampshire would provide about £3.50 per
pupil in primary and secondary schools for books, equipment
and materials. Sums discussed above take this into account.
(Note: Throughout resource calculations have been made on
common levels for national curriculum year 7 pupils whether in
middle or secondary schools).
as1327
APPENDIX 5
EDUCATION COMMITTEE
REVENUE BUDGET 1991/92
GENERAL SCHOOLS BUDGET 1990/91
1. The Hampshire Scheme of Local Management in Schools identified
certain functions to be managed centrally. The attached table
lists all these items with the percentages of General Schools
Budget quoted as well as the cash figures. A clear process
exists to enable modifications to the Scheme to be made through
a County LMS Review Group on which there is headteacher
representation from primary and secondary schools.
Modifications are subject to consultations with school
governing bodies and, for major variations, the approval of the
Department of Education and Science.
2. Each function managed centrally is a separate part of the
Scheme. All reviews incorporate the dual aims of :
* the Education Committee's
budget strategy to devolve to
school funds held centrally;
and
* enabling schools to have the
maximum choice possible to
determine the level of
service required.
3. Once the funds are devolved it is open to each school to use the
money to buy in the service or to use some or all the money in
other areas.
4. Hampshire is already one of the leading LEAs, with 85% of the
maximum possible sum delegated. Subject to consultations with
governors and heads and the Committee's decisions, the aim is
to increase that proportion. Planning has commenced to offer
schools the choice by March 1992 (1993 in the case of catering
service) to manage locally the following resources from the
list of discretionary exceptions overleaf:
- catering*
peripatetic/advisory teachers, etc
- special staff costs - sickness
- school library service
- music service
-field study and outdoor centres
* catering figure of £15,606,000 is the gross cost, the actual
cost to the County Council is about £6M.
5. This greater devolution would increase the percentage of the
"schools' potential budget" (as defined by DES and smaller in
coverage than the General Schools Budget on the attached table)
under the direct control of school governing bodies from the
current level of 85.78% to 87.48% (excluding catering budget).
A table appeared at this point in the Report which could not be
displayed properly on the Computer. It has therefore been
excluded from Hantsnet and STAIRS.
For further details contact the owner of the following
logon who submitted this document: SCRMXN
Appendix 6
Revenue Budget 1991/92
The Cost of Introducing the National Curriculum
This summary reflects research and discussions involving
headteachers, officers and inspectors during the past year.
Comments made directly by the headteachers' and principals'
groups are attached.
1. Additional Resources in Primary Schools
Some costs are short-term to cover, for example, training and
materials to start off new assessment arrangements. Central
government has made some recognition of those needs by
meeting part of such specific costs through the GEST scheme
(Grants for Education Support and Training). Other needs
identified are for resources necessary to ensure successful and
sustained provision for the national curriculum. Further
needs, such as for support staff, have not yet been fully
considered.
2. Teachers in Primary Schools
(a) Planning, Preparation and Assessment
Primary school teachers are required to plan, prepare and
undertake assessment of children working in groups and
individually, but little provision is made for them to have
time
in school other than with a full class. In 1988/89 and
1989/90
the need for "non-contact time" was recognised through a
phased budgetary policy which would require 100 additional
posts in 1991/92. This would increase the allocation of
staffing resources to primary schools to about 4% of
teachers'
time, equivalent to just under half an afternoon per week
on
average. The cost would be £1,360,000 in a full year.
This
would not improve the basic provision which is made on
the
existing policy of notional class sizes of up to 34 (or 30
in
reception classes).
(b) Small Primary Schools
Headteachers in schools with fewer than 150 pupils on roll
normally need to undertake responsibility for a class.
Preparations, planning and assessment still have to be
managed and the current resources intended to release
the head from class teaching duties for up to two days a
week leave the head under pressure which would be
relieved by providing for a further day. £360,000 would
be required from April 1991 for the 130 smallest schools
(equivalent to 26 posts).
(c) National Curriculum Across the Ability Range in Primary
Schools
The LMS formula recognises that all schools will at some
time have children with learning difficulties who will
require help
in order to ensure full access to the national curriculum (albeit
not necessarily to require a "statement" under the 1981
Education Act). The Committee had already established an
intention to phase in additional posts, the next primary
instalment being 30 posts, costing £410,000 from April 1991.
3. General Equipment for Primary Schools
Books, basic equipment and other materials require replacement
and updating at varying rates. The establishment of science
and technology as compulsory subjects creates new demands.
Headteachers have worked with officers and inspectors to
estimate the cost of a programme which would bring each
primary classroom up to a level over a five year period
sufficient to sustain the national curriculum. The costs would
be:
Key Stage Cost per Pupil (£)
1 (up to age 7) £48
2 (up to age 11) £50
3 (up to age 14 - part in middle schools £52
The current allocation within the LMS formula is £25.34 per
pupil for stages 1 and 2 and £39.00 for stage 3. The extra
money required would make it possible to maintain a 5 year
rolling replacement programme. The full year cost would be
£3.34m.
4. Information Technology (IT) in Primary Schools
Information technology is expected to span the entire
curriculum. Equipment purchase has involved education
support grants and private funding, but a secure replacement
programme will be needed. Guidelines suggest at least one
computer kit per class, with additional machines to provide
some flexibility. A 5 year replacement programme for one kit
(about £1,500) per 30 pupils would be a modest approach in
view of the rapid changes in this field. It would cost £1.33m
in a full year to provide a rolling programme for future
renewal of equipment.
5. Summary of Costs (Primary)
£000 (full year)
Teachers' planning and assessment time 1,360
Extra staff for small primary schools 360
Helping pupils with learning difficulties 410
General equipment 3,340
Information Technology 1,330
_____
6,800
6. Additional Resources in Secondary Schools
Headteachers are still reviewing the implications in detail as the
precise requirements for key stages 3 and 4 become clearer.
Some matters can, however, be considered, particularly where
they relate to resource needs already identified before the
additional costs of the national curriculum can be fully
assessed. The recent flexibility indicated by the Secretary of
State does not reduce the need for resources, particularly for
the under 14s who will be required to follow the full range of
subjects.
7. Teachers in Secondary Schools
(a) Curriculum led Staffing
The current allocation of staffing resources to secondary
schools is based on a curriculum-led formula phased in
from 1987. That formula was not fully implemented but
was introduced for year 10 and 11 pupils and extended to
year 9 in 1988. To bring it in completely for the under
14s would require the equivalent of 200 posts at a full
year cost of £2.70m. The formula provides the best
current measure of how many teachers are needed to
support a full secondary curriculum. Phasing the
necessary improvements over 3 years would require
£900,000 in 1991/92, equivalent to less than one teacher
per school on average.
(b) National Curriculum Across the Ability Range
As discussed for primary schools, a phased programme was
established by Committee, which would require a further
instalment for secondary schools of 10 posts, costing
£140,000 from April 1991.
8. General Equipment for Secondary Schools
Detailed work is still being undertaken. Secondary heads
recognise the outstanding and pressing needs in primary
schools and understand that committee may not be in a position
to make a full response at this stage. Their work is aimed
mainly at providing a full picture for 1992. Work already done
shows, however, that a basic £3.70 per pupil would be needed
in 1991/92 as a "pump primer" to begin a sustainable
programme of upgrading and replacement of books, equipment
and material for key stages 3 and 4. The full year cost would
be £300,000.
9. Information Technology (IT) in Secondary Schools
The requirements for secondary schools are even more
demanding than for primary schools. One kit is needed per 12
pupils, requiring for a 5 year rolling replacement programme
£2.05m.
10. Curriculum Support Staff
Technicians for laboratories, workshops, reprographics and
other
support facilities make teaching much more effective. An initial
assessment, providing one to two extra support staff per
school on average would require £1.5m. If phased over 3
years, the 1991/92 cost would be £500,000.
11. Summary of Costs (Secondary)
£000
Teachers: Curriculum led staffing, first phase 900
of three
Helping pupils with learning difficulties 140
General equipment 300
Information technology 2,050
Curriculum support staff, first phase of three 500
_____
3,890
12. Summary (Primary and Secondary)
Primary Secondary Total
£000 £000` £000
Teachers 1,360 900 2,260
Small primary schools 360 360
Helping pupils with learning 410 140 550
difficulties
Equipment (including computers) 4,670 2,350 7,020
Lab. technicians and other 500 500
support staff _____ _____ _____
6,800 3,890 10,690
In order to achieve the improvements in secondary staffing
without
phasing, the total would rise from £3,890 to £6,690,000
13. Central Government Grants (GEST)
The allocations for Hampshire would provide about £3.50 per
pupil in primary and secondary schools for books, equipment
and materials. Sums discussed above take this into account.
(Note: Throughout resource calculations have been made on
common levels for national curriculum year 7 pupils whether in
middle or secondary schools).
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