LEGAL AND HISTORICAL BACKGROUND/FOUNDATION OF LOCAL GOVERNMENT

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I. HISTORICAL BACKGROUND
Local Government Administration from the Spanish regime to the Fourth Republic were characterized by a highly centralized regime Spaniards (1521) faced with Filipino revolts and was forced to lose the Philippines to the United States of America in 1898 *(First Philippine Republic 1896-1898) Americans attempts in a short lived policy of decentralization and was overtaken by the centralist policies of government during Philippine Commonwealth in 1935
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Japanese (1941 WW II) Japanese Sponsored Government (conquerors) - never accepted in the provinces and elsewhere

3rd Philippine Republic (1946) gained independence from United States - the issue of the local autonomy became meaningless Local Autonomy Act of 1959, Decentralization Act of 1967 Barrio Charter and

- were the national legislations passes in response for a self rule concept
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September 1972

Martial Law was declared During Marcos Authoritarian years (1972-1986), a ministry of Local Government was instituted to invigorate provincial, municipal and barangay governments.
a new constitution was adopted RA 7160 otherwise known as the Local Government Code of 1991 was approved which was took effect on January 1, 1992.
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October 15, 198

October 10, 1991 -

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II. RELEVANT PROVISION OF LOCAL GOVERNMENT CODE

A. Constitutional Provision The constitution basis in the enactment of the Local Government Code of 1991 ARTICLE X of the 1987 PHILIPPINE CONSTITUTION LOCAL GOVERNMENT

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Section 1. The territorial and political subdivision of the

Republic of the Philippines is the provinces, cities, municipalities, and barangay. There shall be autonomous regions in Muslim Mindanao and the Cordilleras as hereinafter provided.

LGUs (Local Government Units) Provinces Largest local administrative unit headed by an elective governor and aided by a vicegovernor, also elected Annual income of not less than 20M, contiguous territory of at least 2,000 sq. km. and population of not less than 250,000

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Municipalities Subordinate to the province Annual income of 2.5M, contiguous territory of at least 50 sq. km. and population of not less than 25,000
Barangays Lowest level of local administrative unit Contiguous territory 2,000 inhabitants Cities Annual income of not less than 50M, and a population of not less than 20,000 Component cities : subject to general supervision by the province
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Autonomous Regional Government Created by special law ARMM/Cordillera Region

local autonomy. Section 3. The Congress shall enact a local government code which shall provide for a more responsive and accountable local government structure instituted through a system of decentralization with effective mechanism of recall, initiative, and referendum, allocate among different local government units their powers, responsibilities, and resources, and provide for the qualification, election, appointment and removal, term, salaries, powers and functions and duties of local officials, and all other matters relating to the organization and operation of the local units.
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Section 2. The territorial and political subdivision shall enjoy

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Section 4.

The President of the Philippines shall exercise general supervision over local government. Provinces with respect to component cities and municipalities, and cities and municipalities with respect to component barangays, shall ensure that the acts of their component units are within the scope of their prescribed powers and functions.

Section 5.

Each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the congress may provide, consistent with the basic policy of local autonomy. Such taxes, fees and charges shall accrue exclusively to the local governments.
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Section 6.

Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.

Section 7.

Local governments shall be entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabitants by way of direct benefits.
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POWERS/ATTRIBUTES OF LGUs
Power to create, divide, merge barangays Delivery of basic services and facilities Create own sources of revenue and wealth Power of Eminent Domain Corporate or Municipal Powers Power to negotiate and accept grants and donations Power to reclassify agricultural lands

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B.The Major Features of RA 7160

1. Section 17 of LGC 1991. Basic Services and Facilities Local government units shall endeavor to be self reliant and shall continue exercising the powers and discharge the duties and functions currently vested upon them. They shall also discharge the functions and responsibilities of national agencies and offices devolved to them pursuant to this code. Local government shall likewise exercise such other power and discharge such other functions and responsibilities as are necessary, appropriate or incidental to efficient and effective provision of the basic services and facilities enumerated therein.

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Devolved Basic Services

1.

2. 3.
4. 5. 6. 7. 8.

Agricultural Extension & on-site research Community based forestry projects Field health and hospital service and other tertiary health services Public works and infrastructure projects funded out of local funds School building program Tourism facilities and tourism promotion and development Telecommunication service for provinces and cities Housing projects for provinces and cities

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Devolve Regulatory functions

1.

2. 3. 4. 5.

Inspection of Food Products Adoption of quarantine regulations Enforcement of National Building Code Regulation of tricycle operation Licensing of cockpits

2. Local government code granted LGUs the power to develop their own organizational structure, staffing pattern and appoint officials wholly paid by the local government.
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2.1 Section 76 of LGC 1991. Organization Structure & Every local government unit shall design and implement own organizational structure and staffing pattern taking consideration its service requirements and financial, subject to the minimum standards and guidelines prescribed by the Civil Service Commission. 2.2Section 447 of LGC 1991. Power, duties, functions and a. The Sangguniang Bayan as the Legislative Body of the municipality shall enact ordinances, approved resolutions and appropriate funds for the general welfare of the municipality and its inhabitants pursuant to the section 16 of this code and in the power exercise of the corporate powers of the municipality and provided for under section 22 of this code shall
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Staffing Pattern

compensation

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i.

Review all ordinances approved by the sangguniang and executive order issued by the Punong Barangay to determine whether these are within the scope of the powers of the Sanggunian and Punong Barangay, Subject to the provision of this code and pertinent laws, determine the powers and duties of officials and employees of the municipality, Determine position and the salaries, wages, allowances and other emoluments and benefit of officials and employees paid wholly o mainly from municipal fund and provide for expenditures necessary for the proper conduct of programs, projects, services and activities of the municipal government

ii.

iii.

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3.

It increased the share of the local government units in the share in the internal revenue taxes as well as taxes in the utilization and development of national wealth.
3.1 Section 284 of PCG 1991. Allotment of Internal

Revenue Taxes

Local government units shall have a share in the national internal revenue taxes based on the collection of the 3rd fiscal year preceding the current fiscal year as follows: a. on the 1st year of the effectivity, 30% b. on the 2nd year, 35% c. on the 3rd year and thereafter, 40%

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3.2 Section 285 of Government Units

LGC

1991.

Allocation

of

Local

The share of local government units in the IRA shall be allocated in the following manner: a. Provinces 23% b. Cities 23% c. Municipalities 34% d. Barangays 20% Provided, however, that the share of each province, city and municipality shall be determined on the basis of the following formula: a. Population 50% b. Land area 25% c. Equal sharing 25%
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Provided further that the share of each Barangay with a population of not less than 100 inhabitants shall not be less than Php 80,000.00 per annum chargeable against the 20% share of the barangay from the IRA, and the balance to be allocated on the basis of the following formula:
a. On the 1st year of effectivity 1. Population 40% 2. Equal sharing 60% On the 2nd year 1. Population 50% 2. Equal sharing 50%

b.

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c.

On the 3rd year and thereafter 1. Population 60% 2. Equal sharing 40%

3.3

Section 290 of PGC 1991. Amount of share of Local Government Unit

Local government units shall in addition to the IRA have a share of 40% of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry charges, and such other taxes, fees or charges, including related surcharges, interest, or fines and from its share in any coproduction, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction.
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1. 2.

SOURCES OF REVENUES National Government

3. 4.
1. 2. 3. 4. 5. 6.

IRA Share from taxes, fees and charges collected from the development and utilization of national wealth Other grants and subsidies Debt relief program Real Property taxes Business taxes Other local taxes Regulatory fees Operation of Local Economic Enterprises Tolls and users charges

Locally Generated

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Other Income

1. Sales/Lease of Assets 2. Credits 3. BOT scheme 4. Grants 3.4 Section 18 of LGC 1991. Power to generate and apply resources

Local government unit shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, programs, objectives and priorities, to create their own sources of revenue and to levy taxes, fees and charges.

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4.

The code encouraged active and direct participation of civil society, non-governmental organizations and the private sector in the process of local governance by making them formal members of several local special bodies such as local development council.
4.1 Section 34 of LGC 1991. Role of people and non-

governmental Organization

Local government units shall promote the establishment and operation of people and non-governmental organizations to become active partners in the pursuit of local autonomy.

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MEMBERSHIP IN THE LOCAL SPECIAL BODIES

1. 2. 3. 4. 5. Local Development Council Local Health Board Local School Board Local Peace and Order Council Local pre-qualification, Bids Committee

and

Awards

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5. The local government code of 1991 provide the policy context for the emergence of intrepreneural local government by encouraging LGUs to enter into joint venture and partnership with the private sector such as build-operate-transfer arrangement and bond flotation
5.1 Section 35 of LGC 1991. Linkages with people and NGOs The local government unit may enter into joint venture of such other cooperative arrangements with people and nongovernmental organization to engage in the delivery of certain basic services, capability-building and livelihood projects and to develop local enterprises designed to improve productivity and income, diversify agriculture, spur rural industrialization, promote ecological balance and enhance the economic and social well being of the people
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SPACES FOR CITIZENS PARTICIPATION

1. 2. 3. 4. 5. Mandatory consultation Mandatory public hearing Recall Initiative and referendum Local sectoral representation

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