SCHOOLS operating at a budget deficit in Caerphilly County Borough are receiving extra support to balance their books, senior councillors have heard.
At the end of March this year, there were 15 primary schools carrying forward a total deficit of £559,000 and six secondary schools carrying forward a combined £2.9m deficit.
Figures published by the council this week show the situation has worsened compared with a year earlier, when the total deficits of some eight schools was around £1.1m.
At a cabinet meeting on Wednesday July 17, Cllr Philippa Leonard, the cabinet member for planning, asked how the council was supporting schools to manage their budgets.
Steve Harris, the council’s head of finance, said schools facing budget challenges are given “three years to turn that position around” with local authority help.
The council plans to keep each of the 21 schools under “close review” during the current financial year, and schools’ deficit budgets will have to be “underpinned by recovery plans”, according to a council report.
At the meeting, council leader Sean Morgan said schools will need support to “make sure [they] remain sustainable”.
The meeting heard that many of the schools facing deficits in March had gone on to make improvements since then.
But Mr Harris warned the “level of support required is likely to grow”, given wider pressures facing the council.
Caerphilly Council’s budget for this year includes around £56m of savings, funded through various channels including increased government settlements, temporary and permanent cuts, the use of reserves, and a rise in council tax.
The local authority is looking at having to make another £45m in savings over the next two financial years, according to the latest estimates – which also show inflationary pressures for schools alone will total £3m.
