A new push by the British government to reduce schools’ budget surpluses could see the money they have saved leaving education to pay for other children’s services. Ministries want some of the £2 billion (Rs.16,000 crore) sitting in school bank accounts to be used to fund their plans for earlier intervention in the lives of disadvantaged children and more partnership-working between local children’s services. And they are threatening “stronger action” if schools and local authorities fail to cooperate and reduce what they describe as “unacceptable” sums of money put aside by schools.
The warning has alarmed heads trying to plan for a tougher financial climate with tighter settlements expected from 2011. According to John Dunford, general secretary, Association of School and College Leaders, “a lot of rubbish” is talked about school budget surpluses. He believes it was a mistake to fund policies aimed at the whole system from surpluses that only needed reducing in a minority of schools.
Chris Keates, NASUWT (National Association of Schoolmasters/Union of Women Teachers) general secretary, argues all schools need funding for partnerships whether or not they have surpluses. “We would prefer to see something that actually discourages huge balances being built up in the first place,” says Keates.
But local government leaders welcome the renewed attempt to ensure that money lying in school bank accounts is spent. The move is revealed in a little-noticed section of this summer’s schools white paper that says the government intends to “support and challenge schools and local authorities to reduce school surpluses to more appropriate levels, including using surpluses to pump-prime partnerships and early intervention systems”.
In November 2007, the government backed down on a plan to force local authorities to redistribute 5 percent of all surplus balances held by schools in their area. But the white paper warns: “It is unacceptable that schools continue to hold on to significant surpluses, which should be spent on improving children’s outcomes today, and we will take stronger action if surpluses are not reduced.”
Local authorities already have the power to redistribute £592 million (Rs.4,736 crore) in “excessive” schools surpluses — more than 5 percent of a secondary’s annual income or more than 8 percent for a primary. When this happens, the money has to go to other schools.
(Excerpted and adapted from Times Higher Education)