Funding & Regulation after 2010

Julian Gravatt, AoC Assistant CEO.

Context:

DIUS/DSCF split June 2007
Raising Expectations March 2008
ASCL Bill expected November 2009
LSC staff allocated to new jobs November 2009:
950 to LAs
500 to YPLA
1800 to SFA (of which 400 to NAS)

16-18 via LAs, regulate 6th form colleges
Regional and Sub-regional groupings
SFA for Adult funding, regulates FE colleges

London sub-regional covers all 32 boroughs, in some other regions it is the County Council.

Party politics could get in the way (central vs local govt)

YPLA runs national formula - 168 LAs (many Conservative-controlled) and 43 sub regional groupings
Emphasis on increasing numbers of 16/17 year olds in education and training, no increase in funding per student, implies SLN per learner ratio will have to decrease (more for less).

How will allocations be determined on a timely basis? "it's going to be a complete mess".

Several major uncertainties re national/local planning, how funding will follow learners, whether there is scope for local funding variations vs national formula, tension between education and training (apprenticeships).

SFA under pressure to simplify system, support industrial policy (skills activism), emphasis on job outcomes. Simpler formula, complex ends, less money.

Funding formula possibilities:
Convergence of 16-18 with pre-16 funding? - lower programme weighting, higher disadvantage weighting, more prescriptive SLN ratios?
19+ - simpler, more funding on outcomes

Regulation:

Quality Ofsted (well respected) and FfE (not applicable to schools yet) plus other quality marks and standards

Financial GFE and SFC will have different rules.
SFA and YPLA will be charitable regulators of colleges.
Since incorporation, raft of tight national rules for colleges. How much of this will endure or be in conflict with LA rules?
AoC are pushing for a slimline national framework

Legal Corporations with charitable status, 2006 Charities Act, may be more litigation to protect funding if disputes with LAs. "My word is my bond" - lessons from capital debacle.

Problems:

Students from non-home LAs (big issue for London colleges)
SFA regulator for GFEs, but in may cases accounts for a low % of income
Who is the lender of last resort in the new funding landscape?

Immediate challenges:

Working out 2009/10 rules
20010/11 allocations at a time of economic and political change
Ensuring college focuses on core tasks