EDUCATION REMAINS A PRIORITY

Education-- from basic to higher education-- remains a priority of the Aquino administration. It understands the concerns of
teachers, students, and their parents, and has proposed the 2011 Reform Budget precisely to ensure that the education sector will
receive the funds they need. The bottom line:

1. The proposed budget for the whole education sector actually increased by P31 billion. The proposed budget for basic education
in particular increased by 18.5%, the highest increase in a decade.
2. The 2011 Budget proposes a larger amount for SUC’s than what they actually received for 2010.

2010 actual SUC budget released vs

2011 Proposed NEP of PNoy
Left: The first bar in toto represents the 2010
appropriated budget for SUCs, including the
Congressional Insertions subjected to a conditional veto
by former President Arroyo -- and were never released.
The second bar represents the proposed SUC budget
for 2011. The graph illustrates that the proposed 2011
budget is P2.373 billion higher than that of the 2010
proposed budget, which was the only amount not subject
to the former President’s conditional veto.

Right: A graph illustrating the difference between

the overall education budget for 2010 (left) and 2011 (right).

Q & A on the Education budget for

Fiscal Year 2011
Was the Education Budget cut?
The education budget was actually
increased from 15.6% (P240.59 billion) of
the National Budget to 16.5% (P271.67
billion).
Why do people say the budget was cut?
As stated, the nominal figures for 2010
include congressional insertions which made
the 2010 figures seem higher, but which
were never disbursed as per the conditional
veto of former President Arroyo.

Was the budget for State Universities and
Colleges (SUC) cut?
The proposed SUC budget for 2011 is
P23.407 billion, or 11.3% of the total
National Budget: higher than the P21.034
billion proposed in 2010. The increase
is allotted for Personal Services (PS) to
support the requirements of the Salary
Standardization Law.
The P23.845 billion 2010 appropriation for
SUCs in the 2010 General Appropriations
Act was not the actual budget released
for 2010. At the least, P2.8 billion worth of
congressional insertions was subjected to a
conditional veto by former President Gloria
Macapagal-Arroyo, and was never released.
The actual SUC budget released for 2010
only amounted to the 2010 proposed budget
of P21.034 billion.
Another reason may have been the relatively
larger basic education funding increase
to P207.3 billion, 18.5% of the 2011
budget—the highest increase in a decade.
This move was made to aid the sector of
basic education, which the administration
deems most in need of public assistance.
Furthermore, it is in accordance with Section
2, Article XIV of the 1987 Constitution, which
encourages the Government to focus on
basic education.
What is a Conditional Veto?
It is defined as a veto in which the President
objects to parts of a Bill and proposes
amendments and conditions to make it
acceptable.
The insertions could only have been released
if the 14 Congress enacted new revenue
measures. This condition was not met.
What does this mean for SUCs?
SUCs may earn extra income through
different ventures, including partnerships
with the private sector, and utilizing
resources, such as land, that are available
to them. The institutions are free to manage
and allocate these resources as they see fit
to augment their budget.
As stated in Higher Education Modernization
Act of 1997 (Republic Act 8292), SUCs are
authorized to retain and utilize their own
income. At the end of 2009, SUCs had a total
amount of P19.1 billion in cash balances.
These institutions, as proposed, should
use their cash balances to fund academic
programs. This is in line with the President’s
objective to make SUCs more self-reliant.
What does this mean for teachers in SUCs?
The salaries and benefits of teachers are
fully covered.
What does this mean for students in SUCs?
The general concern is that this might
lead to tuition hikes in SUCs. The 2010
budget was proposed as such to prevent
unnecessary tuition fee increases. The whole
amount allotted to SUCs will be released
unconditionally.
Students should nonetheless encourage the
administrations of their respective schools
to come up with creative ways to maximize
income from their existing resources to
develop their respective universities or
colleges.

Prepared by: Presidential Communications Development and Strategic Planning Office