Deficit budget? Don’t panic!

Many SBLs right now are facing significant deficits in their school or trust budgets and for some, this might be the first time having to manage this. Don’t panic! Andrew Blench has some advice from someone who has faced this scenario a few too many times to mention

Now is the time for some positive self-talk. It might seem overwhelming but remind yourself of the challenges (personal and professional) you have faced before and how you came through them. You are resourceful and resilient – you wouldn’t have landed this role if you weren’t!

You’ve got this and you can do it!

Also understand that this is not just your deficit to balance. Understandably we are very emotionally engaged with our roles and the budget, taking great levels of personal ownership. We will be the person who has the greatest depth of knowledge around the funding streams and various costs which make up the budget. BUT remember it is the governing board who approve the budget. It is your job – along with senior colleagues – to work on and present to the governing board the options/scenarios which will address the deficit.

Collaborative challenge

As well as the governing board, your executive leader and wider senior team need to take ownership. They make strategic decisions around the shape of the curriculum and all sorts of developments which impact on the budget forecast. So, engage with governors and SLT colleagues. Get the budget forecast on SLT meeting agenda and GB meetings. Meet with your chair of finance or chair of FGB outside of the formal meetings. In my experience, whilst they can’t be operational, a good governor will be your advocate in helping you to get everyone’s focus.

Remember you are not alone. Many SBLs are facing similar challenges, so leverage the power of our wonderful SBL community. Ask questions and explore how we are each tackling things. Use social media, local SBM networks. The trade unions (ASCL, NAHT) and professional associations (ISBL) provide useful guidance and tips around budget forecasting.

No sacred cows

There are no sacred cows! Or at least there should not be in my view. In finding our way forward we can’t say ‘you can’t touch that’ or ‘we will never change this’. Finding solutions means thinking in new creative ways. Often questioning at a deep level, the way that we run our schools. Challenging the received wisdom. Many statements made are opinions rather than facts.

For example, ‘we have got to have a teaching assistant allocated full time to every class in school’ is a statement I often hear. Or that we can’t increase class sizes. To do either will bury student progress and place us into special measures! Or at least that’s the received wisdom. Who says? Where is the evidence base for that opinion?

As statements they might be true, but the best decisions are evidence-based ones in my view. So don’t be afraid to challenge. It may make you unpopular in the short term, but longer term it’s surely better to do things differently and make sure everyone in school still has a job?!

Self-generated income

Look at sources of self-generated income. As a consultant who has seen lots of different school and trust budget forecasts, I am staggered by the low level of self-generated income I see. Let’s be clear, self-generated income is not there to pay salary costs and cover recurring costs. The national funding formula and government funding should cover that. But self-generated income can cover specific short-term one-off improvements or projects which would otherwise have had to come from the GAG or School Budget Share. Self-generated income is things like meals, voluntary contributions to trips, lettings income, sale of resources, ticket sales (performances), traded services (providing IT support to a neighbouring school), donations and grants from charitable trusts.

Remember that turning around a deficit is not a short-term task. You will need to make short term decisions, which we will see the impact over the period of a 3-year forecast. Don’t give yourself undue pressure by feeling that you must fix this in one year, that’s just not realistic.

Lastly try not to let this get you down! It is short term and hopefully with good management will resolve over time. When I used to find this getting on top of me, I would do a break duty and talk to the children. It cheers you up and puts it all in perspective.