Senate Office of the secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 25 DEC 16 P1:34 SENATE mamn. Ao S. No.1621 Introduced by Senator JV Ejercito AN ACT EXPANDING THE PURPOSE AND APPLICATION OF THE SPECIAL EDUCATION FUND, AMENDING FOR THE PURPOSE SECTION 272 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, AND FOR OTHER PURPOSES EXPLANATORY NOTE Under Section 235 of the Republic Act No. 7160 or the Local Government Code of 1991, it is stated that "[a] province or city, or a municipality within the Metropolitan Manila Area, may levy and collect an annual tax of one percent (1%) on the assessed value of real property which shall be in addition to the basic real property tax. "The said revenues shall be exclusively designated to the Special Education Fund (SEF), whose supervision and disbursement shall be handled by the local school boards. In June 2025, the Department of the Interior and Local Government (DILG) reported that 77.67% of local government units (LGUs) have utilized the SEF to build and improve classrooms. This figure represents 1,332 LGUs that have employed 85% of the SEF for educational projects, facilities, and programs for millions of Filipino learners. 1 1 Over 77% of LGUs use Special Education Fund to build, improve classrooms. Department of the Interior and Local Government. (2025, June 23). https://dilg.gov.ph/news/DILG-Over-77-of-LGUs-use-Special- Education-Fund-to-build-improve-classrooms/NC-2025-1077
As expressed by the Union of Local Authorities of the Philippines (ULAP), the SEF can also support the country's network of educators through "timely interventions" that can provide relief to the overworked and underpaid teachers.? However, despite the clear outcomes and potential of the fund, it is worth noting that between 2018 and 2022, there are high underutilization records of the SEF. The analysis of EDCOM 2 shows that about P15 billion were not used in 2022 alone, with the highest underutilization rates in cities at 57 percent. 3 The deficient use of SEF collections is far from proportional to the challenges faced by the country's education sector. The lack of classrooms and facilities, shortage of teachers, insufficient resources, and poor implementation remind us of the visible barriers from inclusive access to learning. The SEF is a helpful too! not just to sustain but to improve our educationa! system in addressing the changing needs of our teachers and students. Furthermore, this legislation seeks to provide definite guidelines on the use of the Special Education Fund to fulfill its vision of providing an effective learning experience through accessible facilities, qualified teaching, and a comprehensive curriculum. In empowering our "pag-asa ng bayan"through quality education, the passage of this bill is earnestly sought. • • JV EJERCITO 2 Use of LGUs Special Education Fund pushed to help teachers. Philippine News Agency. (2025, September 18). https://www.pna.gov.ph/aiticles/1259017 3 EDCOM 2 urges DepEd, DBM and Dilg to update guidelines on the Special Education Fund - EDCOM 2. EDCOM2 The Second Congressional Commission on Education. (2025, February 23). https://edcom2.gov.ph/edcom-2-urges-deped-dbm-and-dilg-to-update-guidelines-on-the-special- education-fund/
Senate TWENTIETH CONGRESS OF THE ) Office of the Secretary REPUBLIC OF THE PHILIPPINES First Regular Session DEC 16 1:34 SENATE RECEIVED BY: S. No. 1621 Introduced by Senator JV Ejercito AN ACT EXPANDING THE PURPOSE AND APPLICATION OF THE SPECIAL EDUCATION FUND, AMENDING FOR THE PURPOSE SECTION 272 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. Section 272 of Republic Act No. 7160 is hereby amended to read as
follows: "Sec. 272. Application of Proceeds of the Additional One Percent SEF Tax. - The proceeds from the additional one percent (1%) tax on real property accruing to the Special Education Fund (SEF) shall be automatically released to the local school boards: Provided, That, in case of provinces, the proceeds shall be divided equally between the provincial and municipal school boards: Provided, however, That the proceeds shall be allocated, for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development) AS DETERMINED AND APPROVED BY THE LOCAL SCHOOL BOARD, FOR THE FOLLOWING: 1. OPERATION AND MAINTENANCE OF PUBLIC SCHOOLS; 2. ACQUISITION OF SCHOOL SITES OR LANDS;
3. CONSTRUCTION AND REPAIR OF SCHOOL BUILDINGS, LEARNING CENTERS, LIBRARIES, AND SCHOOL DORMITORIES; 4. FACILITIES AND EQUIPMENT INCLUDING BUT NOT LIMITED TO INFORMATION TECHNOLOGY EQUIPMENT AND COROLLARY SUPPORT SERVICES, SCHOOL FURNITURE AND FIXTURES, MEDICAL AND DENTAL SUPPLIES, AND INSTALLATION OF RADIO FREQUENCY IDENTIFICATION (RFID) SYSTEM AND CLOSED-CIRCUIT TELEVISION (CCTV); 5. PURCHASE AND MAINTENANCE OF SERVICE VEHICLES; 6. PAYMENT OF VOLUNTARY CONTRIBUTIONS AUTHORIZED UNDER EXISTING LAWS; 7. PAYMENT OF COMPENSATION AND AUTHORIZED ALLOWANCES, COMPETENCY TRAININGS, BENCHMARKING, AND OTHER BENEFITS OF LOCALLY HIRED TEACHING AND NON-TEACHING PERSONNEL: PROVIDED, THAT THE RATES OF COMPENSATION AND AUTHORIZED ALLOWANCES OF LOCALLY-HIRED TEACHING AND NON-TEACHING PERSONNEL SHALL BE DETERMINED BY THE LSB, BASED ON FUNDS AVAILABLE, BUT AT RATES NOT TO EXCEED THE SALARY SCHEDULE BEING IMPLEMENTED BY THE LGU CONCERNED; 8. ANY ADDITIONAL AUTHORIZED ALLOWANCES GRANTED BY LGUS TO NATIONALLY-HIRED TEACHING AND NONTEACHING PERSONNEL CHARGEABLE AGAINST THE SEF AS OF 31 DECEMBER 1997: PROVIDED, THAT SUCH ADDITIONAL AUTHORIZED ALLOWANCES GRANTED THEREAFTER SHALL BE CHARGED TO THE GENERAL FUND: PROVIDED, FURTHER, THAT IN CASE OF FOURTH TO SIXTH CLASS MUNICIPALITIES, SUCH ADDITIONAL AUTHORIZED ALLOWANCES MAY STILL BE CHARGED TO SEF SO LONG AS
THE SAME DOES NOT EXCEED 10% THEREOF, SUBJECT TO EXISTING BUDGETING RULES AND REGULATIONS; 9. OPERATION OF (I) NON-FORMAL EDUCATION PROGRAMS, (IT) EARLY CHILDHOOD EDUCATION, (III) SPECIAL EDUCATION, (IV) SENIOR HIGH SCHOOL, (V) OPEN HIGH SCHOOL PROGRAM, (VI) MADRASAH CLASSES, AND (VII) REMEDIAL CLASSES, INCLUDING THE PAYMENT OF SALARIES, AUTHORIZED ALLOWANCES, AND OTHER BENEFITS OF LOCALLY-HIRED TEACHING AND NONTEACHING PERSONNEL OF THE PROGRAM, AND THE CONDUCT OF TEACHERS' COMPETENCY TRAININGS; 10. OPERATION OF ALTERNATIVE LEARNING SYSTEM (ALS) INCLUDING PAYMENT OF SALARIES, AUTHORIZED ALLOWANCES AND OTHER BENEFITS OF THE LOCALLY HIRED ALS LEARNING FACILITATORS; 11. EDUCATIONAL RESEARCH AND STUDY TRIPS, INCLUDING PARTICIPATION IN ACADEMIC AND ATHLETIC COMPETITIONS; 12. PURCHASE OF BOOKS AND PERIODICALS; AND, 13. SPORTS DEVELOPMENT. NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, ALL EXPENSES ENUMERATED UNDER THIS SECTION SHALL BE SUBJECT TO THE PREVAILING POLICIES AND GUIDELINES OF THE DEPARTMENT OF EDUCATION (DEPED). ALL LOCAL SCHOOL BOARDS SHALL SUBMIT AN ANNUAL REPORT ON THE COLLECTION, ALLOCATION, AND UTILIZATION OF THE SEF TO THE BUREAU OF LOCAL GOVERNMENT FINANCE UNDER THE DEPARTMENT OF FINANCE (DOF-BLGF), COPY FURNISHED THE LOCAL SANGGUNIAN CONCERNED, REGIONAL OFFICES OF THE DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT (DILG), DEPED AND THE DEPARTMENT OF BUDGET AND MANAGEMENT ON OR BEFORE THE END OF THE FIRST QUARTER OF EVERY FISCAL YEAR.
THE DOF-BLGF SHALL THEN SUBMIT TO THE SENATE COMMITTEES ON LOCAL GOVERNMENT AND BASIC EDUCATION AND HOUSE COMMITTEES ON LOCAL GOVERNMENT AND BASIC EDUCATION AND CULTURE, A CONSOLIDATED REPORT ON THE COLLECTION AND UTILIZATION OF THE SEF WITHIN NINETY (90) DAYS FROM RECEIPT OF REPORTS FROM THE LGUS. ALL REPORTS ON THE SEF SHALL BE POSTED IN AT LEAST THREE CONSPICUOUS PUBLIC PLACES, WEBSITES OF ALL LOCAL GOVERNMENT UNITS, AND THE FULL DISCLOSURE POLICY PORTAL BEING ADMINISTERED BY DILG."
Sec. 2. Implementing Rules and Regulations. - Within sixty (60) days from
12 the effectivity of this Act, The DILG, DepEd and DBM, shall jointly promulgate the rules and regulations to effectively implement the provisions of this Act.
Sec. 3. Repealing Clause. - All laws, presidential decrees, executive orders,
letters of instructions, proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in a newspaper of general circulation. Approved,