Treasury and Resources
Ministerial Decision Report
Allocation of fiscal stimulus funding for additional places at highlands college for academic year 2010/2011
1. Purpose of Report
Highlands College recorded 93 additional students in excess of its planned number in the college census undertaken in November 2009. Those additional students were enrolled on to full time courses following a much increased number of applications in the Spring of 2009 (and the award of funding from the fiscal stimulus allocation) and the indicators in Spring 2010 are that there are a similar if not higher number of applications on a like for like basis which are likely to convert to course places if demand is to be met. As a result fiscal stimulus funding will be required in 2010/2011 in order for Highlands to offer those additional places. Using this information on applications to date in 2010 and the experiences from gearing up to offer additional places for the 2009/2010 academic year, the college has prepared a request for funding for 2010/2011 which has been subject to review by the Fiscal Stimulus Steering Group (the “FSSG”). This paper summarises the resulting recommendation from the FSSG to the Minister for Treasury and Resources.
2. Background
As a result of reduced employment opportunities due to the economic downturn, demand for places on full time courses at Highlands (which include BTEC programmes and City and Guilds Diplomas) has increased significantly. In order to provide opportunities for individuals who in a different economic climate would probably have secured employment, additional funding was provided to Highlands to enable it to increase the full time places it could offer across a range of courses where demand was particularly high. Without this funding in the academic year 2009/2010 it is possible that the number of people registered as actively seeking work would have been higher (by a maximum of 93 individuals as at 1 November 2009), resulting in increases in jobseeker allowance payments by the Department for Social Security. Whilst there are other schemes that the Education, Sport and Culture department has developed to help support individuals during the downturn, the capacity of those schemes would not have provided an alternative solution to all these Highlands applicants, and in the absence of a range of opportunities that included Highlands, the outlook for young people, particularly those leaving school at 16, was bleak.
The senior management of Highlands has analysed the applications statistics available at this stage and has concluded that the position is unchanged. Demand is as high for 2010/2011, if not higher than 2009/2010, and the number of students wishing to study at Highlands from September 2010 is, at the mid range of estimates, 117 students higher than the planned number for which the college is funded.
Providing additional opportunities for full time study leading to qualifications during an economic downturn should deliver long term economic benefits through a more highly educated and skilled workforce, as well as the stimulus benefits in the short term. This was recognised in the Proposition for the Economic Stimulus Plan (P55/2009), including the fact that any skills and training initiatives may are intended to provide longer term benefits despite potentially delivering weaker impacts initially than other types of project (such as construction or civil infrastructure projects).
This paper seeks green light approval for the funding of 117 additional students for the academic year beginning in September 2010, based on the funding formula for the college as adjusted for some capital investment work which will be evaluated separately.
3. Evaluation Process and Results
The request submitted by Highlands has been subjected to review by ESC, Skills Jersey, which has endorsed the need for additional places at the college and provided its support to the course offering and learning programmes, and the FSSG.
As well as understanding how Highlands management has estimated the number of additional students expected in September 2010, the college’s retention rates for 2009/2010 have been reviewed in order to understand whether the number of students going on to complete their year (or course) is likely to be adversely affected by a different mix of students than those who would have formed the cohort if just the planned number of students was accepted. If the retention rate was significantly reduced in 2009/2010 compared to previous years, this may question how successful the initiative has been and also the value for money delivered, both of which have a bearing on the decision to provide further funding for the forthcoming academic year. These statistics have demonstrated that overall retention rates as at March 2010 are running marginally higher than the average of the preceding 4 years, which has provided support that the additional money invested, much of which is committed in the early part of the academic year (or even before) is likely to result in a similar proportion of the students in place at the November census graduating their courses in Summer 2010 (based on the information available at this date).
Other relevant matters, including the destination of college leavers, applications by course and the funding formula have been considered and the FSSG is recommending to the Minister that funding is allocated and permission to increase manpower given.
4. Recommendation
Recommendation from the Fiscal Stimulus Steering Group
The Steering Group recommends that the Minister for Treasury and Resources allocates funding of £620,500 to the Department for Education, Sport and Culture (“ESC”) to enable Highlands to offer additional places to those planned in September 2010. The budget allocation will be in the amount of £620,500 across the financial years set out below, and represents the cost of each additional student based on the funding formula which was reviewed and adopted in the previous allocation of fiscal stimulus funds to Highlands.
| Year ended 31 December 2010 £ | Year ended 31 December 2011 £ |
Highlands additional students | 208,195 | 412,305 |
ESC will also require further staff to provide for a higher number of full time students. The Minister is recommended to approve the Education, Sport and Culture Department’s request to increase their established “business as usual” manpower by 6 headcount, 4.5 FTE for the academic year 2010/2011, of which 3 headcount and 1.5 FTE are already authorised and in post having been approved for the academic year 2009/2010, but will require continuation to the end of the 2010/2011 academic year. All the posts will be removed at the end of August 2011, on completion of the 2010/2011 academic year.
5. Reason for Decision
A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The increase in full time student numbers at Highlands meets the key criteria for fiscal stimulus being timely, targeted and temporary. It will benefit local individuals and help achieve the third and fourth objectives of the fiscal stimulus; preparing the foundations for economic recovery through a more highly skilled workforce and achieving longer term economic benefits as well as fiscal stimulus benefits in the short term. The £620,500 allocation to the project, together with the temporary manpower increase, will enable Highlands College to continue to offer full time course places for a larger number of people, helping them improve their skills and gain qualifications during the recession when there are fewer employment opportunities available.
6. Resource Implications
No financial or manpower resource implications other than those explained above.
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