Walsall college poised to go it alone
A college in Walsall is poised to break free from the council in a bid to secure its long-term future.
Walsall Adult and Community College, which caters for around 5,000 students a year, is set to operate independently.
The move will enable the college to apply for further pots of funding amid Government cuts and will save costs for cash-strapped Walsall Council.
Almost 150 staff will transfer over under the plans, which were agreed by the decision-making cabinet last night.
The college, which is known as WACC, has two sites in Hawbush Road, Leamore, and Whitehall Centre, Caldmore, and will continue to receive a reduced level of council support for the next two years.
It will apply for charitable status and to become a wholly-owned subsidiary of the council, initially receiving rent-free accommodation and business support, before becoming fully independent in the third year.
The idea to go independent, which is being referred to as 'spinning out', follows an independent review commissioned by the authority. The college was rated as outstanding by Ofsted last year.
Jamie Morris, executive director of neighbourhood services, said: "By operating independently of the council, Walsall Adult and Community College would be able to sustain and enhance the services it provides by attracting funding from other sources.
"This would enable the college to become financially sustainable at a time when its main source of public funding from the Skills Funding Agency is under pressure and nationally decreasing.
He added: "The key advantage for the council of the college spinning out is that the spin out will reduce the risk to the council from the ongoing reduction in the level of core funding provided to the college."
The report states that if WACC says within council control, the local authority will have to continue to invest resources in the college at a time when cuts mean it is having to focus on its core services.
There are also concerns the college could become financially unviable as its current main funding sources start to dry up.
The college had an operational deficit of £123,000 in 2012/13 and £226,000 last year.
