ADMINISTRATION OF SCHOOL FINANCING

I. Introduction
Since public education was established in the Philippines from the time of the Americans
until now, the funding of public schools has always been shouldered mostly by the National
Government as it appropriates funds to national, provincial and municipal schools. RA 22
otherwise !nown as "he #ducation Act of $%&2 reiterates that practice. 'hapter (, Section )
states that *Public school shall continue to be funded from national funds.+ Generally,
municipalities and barangays shall continue to appropriate funds in their annual budgets for the
operation and maintenance of public secondary schools. ,ith the turn to the -.$2 program of
the #nhanced /asic #ducation Act of 20$ 1RA $0(2 of the 3ep#d, after its signing into law
by President /enigno A4uino 555, funding on its initial operations shall be shouldered by the
current budget of the 3epartment of #ducation 1still coming from the National Government2
1Presidential 'ommunications 3evelopment and Strategic Planning 6ffice and PR#G5N#",
20$2. 7ow will the national government mitigate the needs of public schools in the Philippines
whereas the country8s combined foreign and domestic debts alone amounts to P).9$2 trillion
1:reedom from 3ebt 'oalition, 20$$2; 6bviously, the country needs a lot of *austerity
measures+ in its educational sector to cover for the lac! of funds coming from the 3ep#d8s
budget.
55. Highlights
Sources of Governent Incoe for !duc"tion
Su##ort for !leent"r$ !duc"tion
Su##ort for %u&lic Second"r$ Schools
Su##ort of %u&lic Schools in Ch"rtered Cities
Su##ort of 'oc"tion"l Schools
Su##ort of Nor"l Schools
Su##ort of S#eci"l Schools
Su##ort of Ch"rtered Governent Colleges "nd (niversities
Other Agencies Hel#ing in the Fin"ncing of %u&lic Schools
Su##ort for %riv"te Schools
!)#enditure of Funds of %riv"te !duc"tion"l Institutions
Conclusion
Recoend"tion
III. Sources of Governent Incoe for !duc"tion
5n the Philippines there is no specific education ta<= there is no law assigning part
of whole of an income for school purposes e<cept for the Special #ducation :und
1where an additional one percent ta< on real property is added for this purpose, as
per %residenti"l Decree No. *+*,
"he amount given for education depends upon the good will and graces of the
municipal councils, provincial board and 'ongress of the Philippines.
Non.payment of teachers8 salaries arises in some instances.
'auses of which are poverty of the municipality>province or in a few cases .
political bic!ering.
"he National Government comes to the rescue and usually grants special nation
aid to the needy entities.
General Sources of Government 5ncome for #ducation?
$. "a<es imposed by law 1e.g. real property ta< and import and e<port
ta<es2.
2. "uition :ees
. @atriculation :ees
). Rental for lease of school sites and sales of school products
(. Aand grants and donations 1BP derives income from land given by the
National government2
C. Doluntary contributions 1usually from parents of pupils2
9. Special :ees 1usually from college students= income from entrance
e<ams, registration, library and other special fees2
I'. Su##ort for !leent"r$ !duc"tion
'ommonwealth Act (&C 1#ducation Act of $%)02
o NationaliEed the support of all elementary schools in municipalities and
municipal districts.
o "his law abolished the share of municipalities and the municipal districts
in the internal revenue collections, percentage ta<es on agricultural
products and income ta< accruing to the general fund.
o Ac4uisition of school sites and construction of temporary school buildings
remain the responsibility of the local governments.
/efore 'ommonwealth (&CF
o #lementary schools were Gointly supported by the national and local
government 12> for the government and $> for the local government2
o Poor municipalities were given special aids by the government.
Part of support mentioned to support the -.$2 program in the public elementary
and high school levels would be coming from the 3epartment of Social ,elfare
and 3evelopment 13S,32 who is tas!ed to support the education agenda
through the provision of ''" grants to e<tremely poor households 1@abunga,
20$$2?
o "he government8s conditional cash transfer 1''"2 program under the
Pantawid Pamilyang Pilipino Program 1)Ps2 by President A4uino is
meant to *improve the health, nutrition and education particularly of
children aged 0.$).
o A child is entitled a P,000 cash per school year or $0 months or
P00>month for educational e<penses.
o A ma<imum of three children per household is allowed.
o "o 4ualify for the educational cash grants, beneficiaries8 .( year old
children must attend day care or pre.school classes and C.$) year old
children must enroll in elementary or high school at least &(H of the time.
'. Su##ort for %u&lic Second"r$ Schools
:unding is provided by provincial and city governments.
@aGority of provinces do not have ade4uate funds to support their high school
properly.
Sources of provincial income?
$2 5nternal revenue allotments from national government
22 Share from local ta<es
2 :ees from service rendered
)2 5ncome from miscellaneous receipts
@aGor portion of the support comes from tuition and matriculation fees levied by the
Provincial board.
RA )9&, the National government has been granting annual national aid to general
provincial and municipal high schools since SI $%C.$%C).
"he National aid given is in proportion of the yearly enrollment.
'I. Su##ort of %u&lic Schools for Ch"rtered Cities
Supported from tuition fees and city funds 1derived from special ta<es and internal
revenue ta<es2
SB's or 'hartered schools lamented the Philippine governmentJs inade4uate
financial aid hence these schools impose enrolment 4uotas and increased fees these
recent years 1,i!ipedia, 20$2.
All cities in the Philippines have definite funds for school purposes.
"he National Government allots lump sums as aid.
Another source is the National Aid 1aid is primarily for the salary adGustment of
teachers and other secondary personnel2
D55. Su##ort of 'oc"tion"l Schools
"wo 'ategories? provincial trade school and provincial agricultural school.
All vocational schools must be nationaliEed since the enactment of RA %)& in $%().
Sources of income now are national contribution, tuition fees and income from school
products.
:unding for "echnical Docational and "raining 1"D#"2 in the Philippines is shared
between three maGor economic agents 1Peano and others, 200&2?
$2 Public Administrators 1includes the local government2
22 "rainees who pay fees to public or private providers
2 'ompanies that pay fees to public or private providers 1usually under the
3ual "raining System or apprenticeship or learnership schemes2
3onation from other countries 1e.g. P).).million worth of donations from -orea to
"echnical #ducation and S!ills 3evelopment Authority 1"#S3A22 1P5A, 20$2.
'III. Su##ort of Nor"l Schools
A nor"l school is a school created to train high school graduates to be teachers.
5ts purpose is to establish teaching standards or norms, hence its name 1,i!ipedia,
20$2.
Regional normal schools 1e.g. 1Philippine Normal Bniversity, Silliman Bniversity,
'entral Philippine Bniversity, 'ebu Normal School2 are li!e national schools.
Supported Gointly by students and by national, provincial and municipal government.
I-. Su##ort of S#eci"l Schools
"he Philippine Nautical School in Pasay 'ity offers courses for employment as
merchant marine officers.
Supported by the National Government
A school for the 3eaf and /lind under the /ureau of Public Schools is supported
almost entirely by the National Government with occasional help from the Philippine
'harity Sweepsta!es.
-. Su##ort of Ch"rtered Governent Colleges "nd (niversities
'hartered schools are the Bniversity of the Philippines, 'entral AuEon State
Bniversity, Philippine Normal 'ollege and the Philippine 'ollege of Arts and "rades
Support comes from tuition fees of students and the national funds allocated by
'ongress.
-I. Other Agencies Hel#ing in the Fin"ncing of %u&lic Schools
Agencies that give material aid to schools?
o N#'
o BN5'#:
o American :oundation for the 3eaf and /lind
o Pilot Applied Nutrition ProGect
-II. Su##ort for %riv"te Schools
Generally support is coming from tuition and miscellaneous fees of students.
"here is no law prescribing the ma<imum rate of tuition fees.
Kuality schools with good standards among religious institutions charge relatively
higher rates than ordinary schools.
Religious schools are partly supported by their properties.
-III. !)#enditure of Funds of %riv"te !duc"tion"l Institutions
Payment of salaries of the teaching staff and administrative personnel.
@aintenance of buildings and grounds.
-I'. Conclusion
"he observations above show that the Philippine sources of school financing are mostly
from the National /udget L which, despite its growth in the latter years with the programs put
forth by President A4uino, still falls short to fully satisfy the educational needs of :ilipinos.
#ducation and government officials claim that this school year 20$, *public school students can
already loo! forward to having their own te<tboo!s and chairsFas there would be a MEero
bac!logM in te<tboo!s and school furniture+ 1Santos, 20$22. #<perience in most public schools
proves otherwise. /ut not to be pessimistic, recent years show that there is really sustained
growth in our national government8s allotment for education? $9( billion pesos in 20$0, 209
billion pesos in 20$$, 2&.& billion in 20$2, 2%2.9 billion pesos in 20$ and C.% billion pesos
proGected for 20$) 1see @abunga, 20$$, #ducation 5nternational, 20$2, Presidential
'ommunications 3evelopment and Strategic Planning 6ffice and PR#G5N#", 20$2. "hings
really loo! good however, despite the improvements still the Philippine government falls short of
the Bnited Nations8 standard to *spend at least si< percent of the G3P on education+
1Kuismundo, 20$22. Still the Philippines place is on the lower levels of educational international
standards 1'asauay, 20$22.
-'. Recoend"tions
"he recent improvement in our country8s educational allotment of funds and the reforms
brought forth by the #nhanced /asic #ducation Act of 20$ are positive signs that the
Philippines may very well be on its way to economic recovery and later on to economic vitality.
6ne cannot deny that there is growth to the attention being received by the educational sector
compared to how it was 0 years ago. 5t is therefore this report8s recommendation to help the
government in its *austerity measures.+ "eachers, students and parents can help shoulder the
lac! of funding of our public schools. Simple gestures of help li!e donation of boo!s for our
libraries, used computers for our classrooms, trash cans, flower pots and garden plants for our
school yards L all of these and the li!es regardless of how little they are can help the
government and our local schools shoulder the burden of 4uality education. "eachers need to
be vigilant of what is going on in the government and avoid passivity in our local school8s
programs. "eachers need to first of all act as leaders by articulating their thoughts about what
is going on in our local schools. "eacher and students can start writing articles to help our
schools by publishing the needs of the school and the events thereof. "his can be done by
submitting articles to local newspaper editors, voicing out the needs and activities of our schools
in social media 1:aceboo!, "witter and the li!es2 or even by Gust simply starting a blog L the
internet is everywhere nowadays. Aastly, teachers need to remind themselves everyday that 0
years ago L teacher salary shouldered by the municipal government was very menial and add
insult to inGury, was often late. Now teacher salary alone has ta!en the biggest cut in 3ep#d8s
budget allocation. "his is a very welcome change L something we !now teachers prayed about
in the past.
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