Proposed Government Plan 2024-2027 (P.72/2023): twentieth amendment. Additional funding for education.

STATES OF JERSEY

PROPOSED GOVERNMENT PLAN 2024- 2027 (P.72/2023): TWENTIETH AMENDMENT

ADDITIONAL FUNDING FOR EDUCATION

Lodged au Greffe on 27th November 2023 by Deputy C.D . Curtis of St. Helier Central

STATES GREFFE

2023  P.72 Amd.(20)

PROPOSED GOVERNMENT PLAN 2024-2027 (P.72/2023): TWENTIETH AMENDMENT

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1  PAGE 2, PARAGRAPH (h) –

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

", except that, in Summary Table 5(i), in order that additional funds may be allocated to the existing growth bid entitled Investment across CYPES frontline services' –

1. the Head of Expenditure for the Cabinet Office should be decreased by £2,000,000, through a reduction in the allocation to the Modernisation and Digital department; and
2. the Head of Expenditure for Children, Young People, Education and Skills should be increased by £2,000,000".

DEPUTY C.D . CURTIS OF ST. HELIER CENTRAL

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 2024 – 2027 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 2024 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  refer  to  their  Act  dated  30th September  2016  and  to  approve  the application of existing resources for work on the development of user pays' charges  in  relation  to  all  aspects  of  waste,  including  commercial  and domestic liquid and solid waste;
3. to approve the proposed Changes to Approval for financing/borrowing for 2024, as shown in Appendix 2 – Summary Table 2 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;
4. to approve the extension of the use of the existing Revolving Credit Facility to include the provision of funds that would otherwise be implemented through bank overdraft or bank overdraft facilities under Article 26 (1)(a) of the Law, should they be needed, subject to the limits outlined in that article;

5. to approve the transfers from one States fund to another for 2024 of up to and including the amounts set in Appendix 2 – Summary Table 3 in line with Article 9(2)(b) of the Law;
6. to approve a transfer from the Consolidated Fund to the Stabilisation Fund in 2024 of up to £25 million, subject to a decision of the Minister for Treasury  and  Resources  based  on  the  availability  of  funds  in  the Consolidated Fund as at 31 December 2023 in excess of the estimates provided in this plan, or from budgeted underspends identified before 31 December 2024;
7. to approve each major project that is to be started or continued in 2024 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;
8. to approve the proposed amount to be appropriated from the Consolidated Fund for 2024, 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, except that, in Summary Table 5(i), in order that additional funds may be allocated to the existing growth bid entitled Investment acrossCYPES frontline services' –
   9. the  Head  of  Expenditure  for  the  Cabinet  Office  should  bedecreased  by  £2,000,000,  with  funding  allocated  from  the Modernisation and Digital department; and
   10. the Head of Expenditure for Children, Young People, Educationand Skills should be increased by £2,000,000;
9. to  approve  the  estimated  income,  being  estimated  gross  income  less expenditure, that each States trading operation will pay into its trading fund in 2024 in line with Article 9(2)(h) of the Law and set out in Appendix 2 – Summary Table 6 to the Report;
10. to approve the proposed amount to be appropriated from each States trading operation's trading fund for 2024 for each head of expenditure in line with Article 9(2)(i) of the Law and set out in Appendix 2 – Summary Table 7 to the Report;
11. to approve the estimated income and expenditure proposals for the Climate Emergency Fund for 2024 as set out in Appendix 2 – Summary Table 8 to the Report; and
12. to approve, in accordance with Article 9(1) of the Law, the Government Plan 2024-2027, as set out at Appendix 3 to the Report.

REPORT

One of Jersey's biggest problems currently is the recruitment and retention of essential staff. A disrupted education service does nothing to ameliorate this problem, and as well as the direct effect on teaching staff and children, makes Jersey seem a less attractive place to live, becoming part of a spiral of young person emigration and lower tax revenue.

Teacher strikes have been ongoing for too long. Teachers' pay has not kept pace with inflation, and the strikes have caused disruption to families across the island. An extra £2 million of funding would be sufficient to fulfil the required uplift for teacher pay, allowing normal service to resume in schools.

There is already revenue growth allocation of £2,615,000 for investment across frontline services, representing a target for recruitment of TA's and Teachers linked to the changes that are taking place in education due to the Education reform programme and also the Inclusion programme. It is important that there is a growth in numbers to facilitate these programmes, however, there needs to be funding that is also linked to retaining staff and to recruiting staff that are suitably qualified and experienced.

Headteachers have struggled with recruiting suitable staff and have had to increase class sizes and close curriculum offers (courses) due to the lack of specialist staff. An increase in this funding could be used to support the changing face of education linked to the Education reform programme and the Inclusion programme and support an uplift with a payment to staff in recognition of this. This would aid to offset the continued problems with recruitment and retention of staff that have occurred due to the 15 + year failure to keep pay linked to inflation or the average earnings index over this period.

To recognise the additional demands that have been placed on teachers post-covid and with the changes that are occurring stemming from the education reform programme and inclusion programmes, another £2,000,000 should be added to the I-CYP-GP24- 002 figure.

The allocation of funding is proposed to be made from the Modernisation and Digital head of expenditure. Tens of millions of pounds have been spent on digital and IT and yet Government don't currently have a proper working new IT system. As the Chief Minister stated in a public hearing in response to questions about the IT system – "We are trying to make the best of an extremely poor set of decisions". The Chamber of Commerce has expressed concern about the Cabinet Office's budget overall stating there is a lack of clarity.

A true investment in all members of the current teaching workforce with an educational programme allowance from this additional funding would bring teachers' historical pay back in line with the cost of living.

Financial and staffing implications

There  are  no  additional  financial  or  staffing  implications,  other  than  the  funding identified in the proposition and the staff time required to liaise with Teachers and Education accordingly. Overall it will bring an end to the considerable staff time and expense that has been spent dealing with the dispute.

Additional information

Lifting GDP expenditure in education

The requirements for a leading education system to match the aspirations to allow for future flexibility and lifelong learning will require a greater investment and one which lifts Jersey's GDP expenditure in Education to a level that is comparable to other similar western countries. This is recognised as we have seen the government release both the Independent  school  funding  review  (R  Independent  School  Funding  Review Appendix  20201016.pdf  (gov.je))  and  the  Further  education  and  skills  actionable

agenda where there is a reporting of a funding deficit in terms of GDP.

"Jersey is an outlier in several respects, in relation to 16-18 education, its level of funding for this stage of schooling is lower than most OECD nations"

(See P5 Further education and skills actionable agenda.pdf (gov.je)

Efficiency savings

It  is  important  to  note  that  the  investment  in  frontline  services  as  stated  in  the government plan is only slightly higher than the efficiency savings that have been requested for CYPES. Children, Young People, Education and Skills £2,451,000 efficiency savings requested (see page 57 of p.72-2023.pdf (gov.je))

Although it is recognised that this money may be found from efficiencies in service, it could be reinvested within the department to support correcting the pay deficit that has accumulated over years and bring overall pay for the average worker back in line with inflation. This fits with the statement in regard to efficiencies on P56 "funding to be reprioritised into areas needing further investment". (see page 53 of p.72-2023.pdf (gov.je))

If money is to be reprioritised into areas of further investments, then recognition that a fall  in  front line  service provision should be  counteracted  with  monies saved  by departments from efficiency savings.

Rise in average earnings

In June 2022 average earnings were 6.2% higher than in June 2021 (FPP report P17 gov.je/SiteCollectionDocuments/Government  and  administration/FPP  2022  Annual Report.pdf) whilst teachers had a 2.9% pay rise. In 2023 the average earnings in the private sector were 7.8% whilst the average earnings for public sector was 7.4% even though the nurses and teachers had not settled at this time (due to overtime in some groups, which teachers are not recognised for). https://www.gov.je/SiteCollectionDocuments/Government%20and%20administration/ R%20Average%20Earnings%20June%202023%2020230825%20SJ.pdf

See P19 gov.je/SiteCollectionDocuments/Government and administration/FPP 2022 Annual Report.pdf