administration of school financing

THE ADMINISTRATION OF SCHOOL FINANCING

Ruel G. ManzanoRuel G. ManzanoReporterReporter

The State Responsibility for the Support of Education

• The welfare of the state depends largely upon the education of its citizens.

• Our leaders and framers of the Constitution who have realized the importance of education saw to it that the Magna Carta contain a provision that the state should establish and maintain a complete and adequate system of education and provide at least a primary education for all children of school age.

• Congress has consistently given approximately one-third of the entire budget of the country to education.

Sources of School Revenues

• In the Philippines, there is no specific education tax.• 3 different levels of government: (1) the National, (2) Provincial and

Municipal, and (3) collect taxes and appropriate them according to law.• Sources of government income for education:

1. Taxes imposed by law for the support of the government such as the real-property tax, specific tax, and import and export taxes.

2. Tuition fees imposed on students in public high schools, vocational schools, regional normal schools, and chartered colleges and universities such as the University of the Philippines.

3. Matriculation fees.

4. Rental for lease of school sites and sales of school products.

5. Land grants and donations.

6. Voluntary contributions.

7. Special fees.

Support for Elementary Education

• Before the enactment of Commonwealth Act No. 586 (Educational Act of 1940), the elementary schools were jointly supported by the National and the local government.

• Educational Act of 1940:

1. Support of all elementary schools in municipalities and municipal districts saved the situation for the poor communities.

2. Abolished the share of municipalities and municipal districts in the internal revenue collections, percentage taxes and income tax to the general fund which may be drawn for school purposes.

3. The law forbids the collection of tuition fees in the intermediate grades although it is permits matriculation fees not exceeding two pesos for each pupil enrolled in intermediate grades. 60% spent for the purchase of library books and equipment and 40% for financing athletic activities in intermediate grades.

Support for Public Secondary Schools

• The financial support for the maintenance and operation of public ordinary schools is provided for by the provincial and city governments.

• The source of provincial income are the following:

1. Internal revenue allotments from the national government;

2. Share from local taxes;

3. Fees from services rendered; and

4. Income from miscellaneous receipts.

• The major portion of the support for secondary schools comes from the tuition and matriculation fees impose by the Provincial Board on all high school students.

• Public secondary schools charge a tuition fee of between 80.00 and 150.00 a year.

• Through the enactment of Republic Act No. 3478, the National Government has been granting annual national aid to general provincial and municipal high schools .The law authorized 10 million for the purpose. This aid is primarily intended for salary adjustments of teachers and other secondary school personnel.

Support for Public Secondary Schools

• Voluntary contributions and donations by private individuals constitute additional sources of income.

• In the case of municipal high schools, they are also supported from students’ tuition and matriculation fees and general fund transfer from the municipality where they are located.

• Former superintendent of schools Dr. Pedro T. Orata has advocated the opening of barrio high schools.

• According to Dr. Orata, there are as of July 1967 about 450 barrio high schools.• Sources of funds, the Bureau of Public Schools in its Memorandum No. 86, issued on

August 1, 1966, states as follows:

1. Tuition fee to be charged should not be less than 80.00 a year.

2. 50% of the 10% real estates tax proceeds allotted to barrios in accordance with Revised Barrio Charter should be set aside and used for the improvement of instruction in the barrio high schools.

3. All feeder barrios should share the expenses for the improvement of instruction.

4. All resolutions of the barrios councils regarding the funding of barrio high schools should be approved by the Municipal Council concerned.

Support of Public Schools in Chartered Cities• Supported from tuition fees and city funds.• Another source of income is the national aid.• In R.A. No. 3478- the National Aid was specifically for provincial and

municipal high schools but the law was amended by R.A. No. 4128 so as to include all city high schools. The Aid is also primarily for salary adjustments of teachers.

Support of Vocational High Schools• Vocational schools located in provinces usually come under two

categories- the provincial trade school and the provincial agricultural school.

• All vocational schools must be nationalized since the enactment of R.A. No. 948 in 1954 the sources of income now are national contribution, tuition and other fees an income from school products.

Support of Regional Normal Schools• Regional normal schools are also national like the vocational schools.• Sources of income are national contribution and tuition fees.• Regional normal schools are therefore supported jointly by the students themselves

and by the national, provincial and municipal governments.

Support of Special Schools• The Philippine Nautical School in Pasay City which offers courses for employment as

merchant marine officers is supported entirely by the National Government. The School for Deaf and Blind under the Bureau of Public Schools is supported almost entirely by the National Government with occasionally aids from the Philippine Charity Sweepstakes.

Support of Chattered Government Colleges and Universities• Comes from the tuition and matriculation fees of students and from national funds

appropriated annually by Congress.• Special aids for the construction, repair and improvement of buildings are given in

special legislation or taken from the pork barrel fund.

Procedures Followed in Financing Education by the Municipal, City, Provincial, and National Governments

• There is no special education tax fixed by law in the Philippines.

• Municipalities, municipal districts and cities do not have to provide for elementary education by virtue of Commonwealth Act No. 586 which placed the responsibility of support for elementary education on the National Government.

• Local entities may set aside sums from their general fund income if they can afford, but it is optional.

• The National Government has assumed the greater burden of support for:

– Elementary schools in the whole country

– Regional normal schools, vocational schools, specials schools and partially even provincial secondary schools.

– Chartered colleges and universities

• The construction and repair and improvement of school buildings remain the legal responsibilities of provinces, municipalities and cities

•System Used by the local Governments

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•Procedure followed by the National Government

•Procedure in the Expenditure of Funds