West Lothian’s education budget is expected to overspend by more than £500,000 according to new figures revealed to councillors this week.
More than £100,000 of that money will be spent on transport for homeless children as the numbers of people without a place to live remains stubbornly high.
The council’s Education Policy Development and Scrutiny Panel heard a six month update on the budget in a report by Fiona Russell, group accountant.
Costs are met from the housing department’s general revenue account.
She told the committee: “At month six this is forecast to overspend by £105,000 due to the increase in fuel costs together with an increase in homeless presentations meaning more children require school transport.”
The report added: “Net expenditure forecast at month six is £570,000 more than budget within the general fund revenue budget for the education portfolio.”
There are fears that the growing financial crisis will further impact the education department’s budget.
The six month report added:”There remains significant risks and uncertainties associated with the financial assumptions in the council’s budget which continue to be monitored, including the recovery from Covid-19, the cost of living crisis and forecast energy prices, which are continuing to rise significantly.”
One of the biggest cost increases could be the settlement for teacher’s pay.
The report added: “The magnitude of the financial challenges facing the council are unprecedented with substantial risks that are largely outwith the council’s control creating significant budget implications.”
Specific risks which could impact the education service in the longer term include:
Actual pupil numbers exceeding forecast numbers, requiring more teachers to be employed.
House building assumptions are not realised resulting in changes to the school demographic assumptions.
Inflationary, demographic growth and demand above budgeted levels for school transportation.
School transport contract retendering costs being materially higher than current levels.
The early learning & childcare expansion plan not being fully funded by Scottish Government.
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