Information is slowly emerging as to what has happend with school budgets in the financial year now coming to an end.
Some local authorities in England have started to take action against schools that have kept back more than the 5% of budget allowable in secondary schools, or more than 8% in primary schools.
These local authorities are recovering the money from the school budgets and then spending it themselves – often on upgrading IT services across the local authority particularly in relation to new government requirements for IT provision which come into effect in 2010.
Other local authorities are taking the money and then redistributing it to other schools that have spent all their money. Gloucestershire, Peterborough, Middlesbrough and Staffordshire have been mentioned in this area.
The number of schools that have balances beyond the allowable level is certainly down on the 40% of schools that had this situation two years ago. Of those who have held money back, most have specified that it is for long term projects, such as building new rooms for specialist subjects.
What is clear is that the amount of money being talked about is only a tiny percentage of the £55bn a year of taxpayers money handed out by the Dept of Children. £42bn of this goes on salaries, leaving £13 billion to be spent. If all the secondary schools kept the maximum allowable the amount carried forward would be £325 million or £65,000 per school.
For the primary schools similar calculations would give a carry-over (or “surplus”) of £21,000
Against that we have a report in the TES saying that 9.1% of schools have budget deficits. As the TES says, where a school is in deficit, it must agree a recovery plan with the local authority to eliminate the deficit, normally over three years.
So at this moment, a mixed picture made up of
Schools having money taken by local authorities and used for central purchasing.
Schools having money taken by local authorities and given to other schools.
Schools having surpluses over the allowed area but no action being taken
Schools having deficits.
Quite a mixture – but certainly NOT a picture of vast hordes of money being stockpiled in school accounts.
Tony Attwood