Treasury and Resources
Ministerial Decision Report
Allocation of fiscal stimulus funding for additional places at highlands college for academic yearS 2010/2011 AND 2011/2012
- Purpose of Report
To enable the Minister for Treasury and Resources to approve a request by the Department for Education Sport and Culture (ESC) for Fiscal Stimulus Plan funding for additional student places at Highlands College.
- Background
Providing additional opportunities for full time study leading to qualifications during an economic downturn was recognised in the Proposition for the Economic Stimulus Plan (P55/2009), including the fact that any skills and training initiatives 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).
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 from Fiscal Stimulus (MD-TR-2009-0131) 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 team of Highlands College analysed the applications statistics available in March 2010 and concluded that demand for places in 2010-2011 was higher than 2009-2010. A request was made to the Fiscal Stimulus Steering Group (FSSG) to fund an additional 117 students in 2010-2011, and a Ministerial Decision (MD-TR-2010-0068) was signed in April 2010.
The Highlands student census data (November 1st 2010), indicated a total of 896 students were taking courses at Highlands during the 2010/2011 academic year, and that 45 students had enrolled in a two year course in September 2010. This highlighted a funding shortfall for 39 students in 2010/2011 and 40 students (45 students less 10% estimated drop-out) in 2011/2012.
This report seeks green light approval for the funding of 39 additional students for the academic year beginning in September 2010, and 40 students for the academic year beginning September 2011, the latter of whom started a two year course in September 2010. The funding is based on the funding formula for the college adjusted for non Fiscal Stimulus items.
- Evaluation Process and Results
The request submitted by Highlands College 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.
Skills Jersey have prepared a report on the additional students enrolled at Highlands during 2009/2010 academic year, which explains that Highlands measured the “Success Rate” (measure used by OFSTED and allowing Highlands to benchmark itself against English Further Education Colleges of the students) and found that results were comparable with the previous year’s results (there was a small decrease in one course whose students were mainly adult learners on Return to Study). This result was considered a success, as the additional students are students who would not normally attend higher education.
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.
- Recommendation from the Fiscal Stimulus Funding Group
The Fiscal Stimulus Steering Group recommends that the Minister for Treasury and Resources allocates funding of £496,380 to the Department for Education, Sport and Culture to enable Highlands to offer additional places that started in September 2010. This funding is for an additional 39 students in 2010/2011 (£226,650), and for 40 students in 2011/2012 (£269,730), the latter of whom started two year courses in September 2010. The budget allocation will be in the amount of £496,380 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 £ | Year ended 31 December 2012 £ |
Highlands additional students | 78,150 | 257,310 | 160,920 |
- Reason for Decision
A discretionary Fiscal Stimulus allocation from the Stabilisation Fund of £44m has already been approved [P.55/2009]. Further to this, the Minister for Treasury and Resources is required to approve individual project allocations. The increase in full time student numbers at Highlands meets the key criteria for fiscal stimulus funding, being timely, targeted and temporary.
It will benefit local individuals and help achieve the third and fourth objectives of the fiscal stimulus, these being:
(3) preparing the foundations for economic recovery through a more highly skilled workforce, and
(4) achieving longer term economic benefits as well as fiscal stimulus benefits in the short term.
Under the Regulation of Public Sector Employees P67/1999, the Minister is required to regulate the number of persons that may be employed by the States, and approve any increase in departmental manpower.
- Resource Implications
Lecturers currently employed by Highlands will work additional hours to provide tutorials for the additional 39 students in 2010/2011, while the 2011/2012 courses will be taught by 3 temporary lecturers. All costs are included in the above funding.
This is the last submission for additional places at Highlands College.
Report author : Fiscal Stimulus Programme Manager | Document date : 23rd November 2010 |
Quality Assurance / Review : Head of Decision Support | File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2010-0165 - fiscal stimulus - award of funding for highlands college - np\wr - fiscal stiumulus - highlands college - np.doc |
MD sponsor : Interim Treasurer of the States |
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