High School will have to cover £886,757 deficit

High schools in the red, including Welshpool High School, will be expected to clear their deficits despite a new funding formula being introduced in April.

And, according to the Local Democracy Reporting Service, that means Welshpool having to clear its £886,757 deficit and Brecon having to cover almost double that amount.

Many schools thought they would be starting the new financial year in a neutral position, but this won’t be the case as outlined last month by departing Education Director, Ian Budd, who is leaving PCC soon to take up a role at Warwickshire.

Education portfolio holder, Cllr Myfanwy Alexander, has now clarified the current position.

“The funding formula recently agreed by cabinet, provides for the distribution of funds to individual schools and is a separate issue to the management of deficits under the Powys Scheme for Financing of Schools 2017/18.

“The finance scheme has no provision to write off a deficit, unless a school is closing, and stipulates that a deficit must be paid off within three years or five years with approval from the appropriate finance officer.”

At the moment Powys secondary schools are £4,161,951 in the red. Schools in an unlicensed position have been asked to submit a recovery plan over three to five years.

An unauthorised deficit is addressed through statutory compliance with the Governing body.

At a meeting of the Learning Skills and Economy Scrutiny Committee, on January 4, Mr Budd was asked to clarify the position for school with deficit budgets.

Director of Education, Ian Budd, answered: “Any historic deficit stays with the school unless it closes, that’s the statutory position.

“There will be no excess in the allocation to pay back deficits, so there’s a pressure that schools live within their means. Their ability to pay back will realistically be limited.”