Proposed Government Plan 2022-2025 (P.90/2021): eleventh amendment. School Funding

STATES OF JERSEY

PROPOSED GOVERNMENT PLAN 2022– 2025 (P.90/2021): ELEVENTH AMENDMENT

SCHOOL FUNDING

Lodged au Greffe on 30th November 2021 by Deputy R.J. Ward of St. Helier

STATES GREFFE

2021  P.90 Amd.(11)

PROPOSED GOVERNMENT PLAN 2022–2025 (P.90/2021): ELEVENTH AMENDMENT

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1  PAGE 3, PARAGRAPH (f) –

After the words "Appendix 2 – Summary Tables 5 (i) and (ii) to the Report" insert the words –

", with provision to be made from the Covid-19 Reserve within the General Reserve, to the Children, Young People, Education and Skills Department to ensure that all schools have a guaranteed minimum 15% headroom funding remaining after staffing and accommodation costs have been taken into account."

DEPUTY R.J. WARD OF ST. HELIER

Note:  After this amendment, the proposition would read as follows –

THE STATES are asked to decide whether they are of opinion

to receive the Government Plan 2022 – 2025 specified in Article 9(1) of the Public Finances (Jersey) Law 2019 ("the Law") and specifically –

1. to approve the estimate of total States income to be paid into the Consolidated Fund in 2022 as set out in Appendix 2 – Summary Table 1 to the Report, which is inclusive of the proposed taxation and impôts duties changes outlined in the Government Plan, in line with Article 9(2)(a) of the Law;
2. to approve the Changes to Approval for financing/borrowing for 2022, as shown in Appendix 2 – Summary Table 3 to the Report, which may be obtained by the Minister for Treasury and Resources, as and when required, in line with Article 9 (2)(c) of the Law, of up to those revised approvals;
3. to approve the transfers from one States fund to another for 2022 of up to and including the amounts set in Appendix 2 – Summary table 2 to the Report, noting that the transfer from the Consolidated Fund to the Technology Fund is subject to the Assembly's approval of a proposition to create such a Fund in 2022, in line with Article 9(2)(b) of the Law;
4. to approve each major project that is to be started or continued in 2022 and the total cost of each such project and any amendments to the proposed total cost of a major project under a previously approved Government Plan, in line with Article 9(2)(d), (e) and (f) of the Law and as set out in Appendix 2 - Summary Table 4 to the Report;
5. to endorse the efficiencies and other re-balancing measures for 2022 contained in the Government Plan as set out in Appendix 2 Summary

Table  6  and  reflected  within  each  gross  head  of  expenditure  in Appendix 2 – Summary Table 5(i);

6. to  approve  the  proposed  amount  to  be  appropriated  from  the Consolidated Fund for 2022, for each head of expenditure, being gross expenditure less estimated income (if any), in line with Articles 9(2)(g), 10(1) and 10(2) of the Law and set out in Appendix 2 – Summary Tables 5(i) and (ii) of the Report, with provision to be made from theCovid-19 Reserve within the General Reserve, to the Children, Young People, Education and Skills Department to ensure that all schools have a  guaranteed  minimum  15%  headroom  funding  remaining  after staffing and accommodation costs have been taken into account.;
7. to approve up to £480 million to be appropriated from the Consolidated Fund for the Past Service Pension Liabilities Refinancing head of expenditure, subject to the availability of funding, which may include, in full or in part, use of the borrowing/financing referred in paragraph (b);
8. to approve the estimated income, being estimated gross income less expenditure, that each States trading operation will pay into its trading fund in 2022 in line with Article 9(2)(h) of the Law and set out in Appendix 2 – Summary Table 7 to the Report;
9. to approve the proposed amount to be appropriated from each States trading operation's trading fund for 2022 for each head of expenditure in line with Article 9(2)(i) of the Law and set out in Appendix 2 – Summary Table 8 to the Report;
10. to approve the estimated income and expenditure proposals for the Climate Emergency Fund for 2022 as set out in Appendix 2 – Summary Table 9 to the Report;
11. to approve an amendment to the policy of the Strategic Reserve Fund to enable that Fund to be used as a holding Fund for any or all monies related to the repayment of debt raised through external financing, with the monies used to offset the repayment of debt, as and when required; and
12. to approve, in accordance with Article 9(1) of the Law, the Government Plan 2022-2025, as set out at Appendix 3 to the Report.

P.90/2021 Amd.(11)  Page - 3

REPORT

Headroom funding is the amount of money available after the costs of staffing and general running of school facilities is accounted for.

In 2018 I lodged a similar amendment to the Common Strategic Policy, requesting that an additional strategic policy be included, that Children should be able to "Attend schools that have guaranteed minimum 15 per cent headroom funding so that there are well-resourced classrooms that can support learning"

However, the Council of Ministers amended my amendment, removing any percentage figures and diluted this to read as follows;

"Be able to attend schools that are well-resourced, including good levels of financial headroom so that schools can positively support the achievement of the best outcomes for all children".

As we can see from the current school deficits detailed in Appendix 1, this simply did not happen.

It is clear from the Government's recognition of those same deficits that funding available for resources and materials for day-to-day teaching and learning is currently inadequate. A new school funding formulae is promised but there is not clarity as to the available spend for schools. In order to give certainty going forward, this amendment guarantees a minimum of 15% of funding available for headroom costs.

This amendment does not cut into the funding requirements for other costs of teachers, other school staff, heating etc. It requires an additional 15% to be available after this is funded.

Without this safeguard in place schools will continue to struggle to fund the basic teaching materials. They will also struggle to plan long term in the changing world of curricula and resources required.

Financial and Manpower implications

Without further details of the outcome of that funding formula review, it is difficult - if not impossible, to fully calculate the financial implication of this Amendment. However, it is anticipated that, taking into account an average existing headroom of 5%1, the additional cost to bring this to 15% could be approximately £8.5 million2.

This indicates why it is a decision that needs to be taken now – so that such headroom can be factored into the funding review and that a long term sustainable financial model can be put in place.

1 WQ 167/2018: N.B it is noted that Headroom average was only provided for secondary schools. It is further noted that this figure of 5% is from 2018 and that the current average is likely to be far lower, as several schools have end of year deficits, as detailed in Appendix 1.

2 Based upon the School Expenditure figures within WQ282/2021 – 10% of the annual school expenditure of £85,363,992

Appendix 1

2021  P.90 Amd.(11)