administration of school financing

1. 1. THE ADMINISTRATION OF SCHOOL FINANCING Ruel G. Manzano Reporter

2. 2. 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.
3. 3. 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.
4. 4. 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.
5. 5. 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.
6. 6. 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.
7. 7. 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.
8. 8. 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.
9. 9. 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
10. 10. System Used by the local Governments 1 A budget is prepared by the treasurer 2 Proposed budget i signed by
all officials concerned 3 Submitted to the municipal council 4 If approved, the resolution of the local government is
signed by the chairman of the councila and local executive 5 If the budget approves,it is becomes legal and valid,
otherwise it does not become operative .
11. 11. Procedure followed by the National Government 1 The Division superintendents asked to submit an estimate of
the needs. 2 The Division of School Finance of the General Office of the Bureau of Public Schools then consolidates
reports and submit to the Secretary of Education 3 The Sec. of Education submits the propoal to the Budget
Commission under the Office of the Presidents of the Philippines. 4 In January, each year, the President submits the
budget for the entire government of Congress for approval. 5 The directors of the Bureaus and thier Secretaries are
summoned by the appropriation committees of the House and Senate for hearing on the justification of thier proposals.
6 After Congress has acted on the National Budget, the President signs it and become operative 7 The enire budget
has finally approved by the Congress and the President is printed for the distribution to all offices concerned.
12. 12. Procedure in the Expenditure of Funds 1 The Budget Office which is the disbursing agency notifies the Offices
concerned of the amounts availabale for release for the first quarter (July to September) 2 The Budget Commission
releases the first allotment based on the approved national budget. 3 The Director of Public Schools notifies the
Division Superintendent of Schools of the allotment for his division by quarter. 4 The salaries forr the national
teachers are paid by checks through I.B.M. The Superintendent is rewuired to submit to the General Office his program
of expenditure 5 The report of expenditure submitted from the field is forwarded by the Director to the Secretary of
Education. 6 These requisitions are then examined and scrutinized by the Office of teh Secretary of Education.
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