Home Canterbury News Article
Schools ordered to hand back £1.5m 'rainy day' cash
14:00, 14 October 2008
Three schools in this area are among 15 that have been told they must hand over nearly £1.5million they are holding in reserves to the county council.
County education chiefs have ordered the schools to relinquish the money after deciding the amounts being held back as "rainy day" money were excessive.
St Stephen's Infants' in Canterbury has been told to hand over £50,000; Bysing Wood Primary at Faversham £12,800; and Cartwright and Kelsey Primary at Ash £11,100.
The move is likely to prove controversial and will prompt complaints from some schools that they are paying the penalty for building up funds through good management.
Several have already unsuccessfully appealed against the county council’s ruling.
The £1.47million will be shared among other schools and be used to meet the costs of higher fuel and energy bills.
Kent County Council acted after it emerged that its 594 schools were together holding close to £80million in reserves.
Figures seen by the KM Group reveal three secondary schools are holding more than £1million in reserves - while one primary school has nearly £500,000 held back for contingencies.
In these cases, much of the money has been earmarked for spending schemes but a further nine secondaries have more than £200,000 each, which has not been earmarked for any initiative.
KCC told schools to justify why they were holding back the money or it would step in and claw some of it back under a policy being implemented as part of a three-year government pilot.
In a statement, Cllr Mark Dance, KCC’s cabinet member for education resources, said: "In 2007, we were asked by the Government to reduce reserves and so we have contacted 41 schools with the highest reserves.
"In 15 cases we have decided the levels were excessive and decided to recover £1.47million. This money will be put back into school budgets and re-distributed in consultation with the Schools’ Funding Forum."
He added: "It is good practice for schools to have a sensible level of contingency but the average figure for Kent is quite high.
"We would encourage schools to support education now and spend the money on the day-to-day running of their schools."
Latest news
Features
Most popular
- 1
‘This rat-run bridge isn’t wide enough - someone will be killed soon’
- 2
Boy, 16, found safe after going missing nine days ago
2 - 3
Only shop in village to shut this week as ‘devastated’ couple leave Kent
16 - 4
A-road shut in both directions after water main bursts
- 5
Mum joined teen son in smashing up ex’s family home and car