TWENTIETH CONGRESS OF THE JUL 10 P6:32 REPUBLIC OF THE PHILIPPINES First Regular Session SENATE RECENSO EY S. B. No. Introduced by Senator Rodante D. Marcoleta EXPANDING THE PURPOSE AND APPLICATION OF THE SPECTAL 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 Article XIV, Section 1 of the 1987 Constitution mandates that "[t]he State shall protect and promote the right of all citizens to quality education at all levels and shall take appropriate steps to make such education accessible to all." Thus, there is a clear need to take vital steps to address the limitation set by the existing provisions of Republic Act No. 7160 or the Local Government Code (LGC) of 1991 on the utilization of the Special Education Fund (SEF).
Section 235 of LGC of 1991 states 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." It also declares that the proceeds of the same shall exclusively accrue to the SEF. According to existing law, the said expenses will be determined and approved by the local school board. In a report released by the Second Congressional Commission on Education (EDCOM 2), the SEF across the country remains underutilized, despite an increase in income'. Corollary, the Department of Education continues to be challenged with perennial issues on learning environments, learning outcomes, teacher welfare and * EDCOM2, "LGU Special Education Fund underutilized, inequitable - EDCOM 2", March 11, 2024, available at https://edcom2.gov.ph/lgu-special-education-fund-underutilized/ (last accessed on July 07, 2025).
resource gaps - areas that require substantive resources. Hence, the need for the expansion of the purpose and application of SEF in order to tap the capability of local government units (LGUs) in addressing these issues within their respective jurisdiction. This measure ensures that SEF is maximized, in response to our LGUs need for additional support to achieve the quality education for our youth. In view of the foregoing, the passage of this bill is earnestly sought. RODANTE D. MARCOLETA
Churt TWENTIETH CONGRESS OF THE ) 25 JUL 10 P6:32 REPUBLIC OF THE PHILIPPINES First Regular Session SENATE S. B. No. Introduced by Senator Rodante D. Marcoleta 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 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 scheots, construction and repair of scheel 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 NON- TEACHING 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, (II) EARLY CHILDHOOD EDUCATION, (III) SPECIAL EDUCATION, (IV) SENIOR HIGH SCHOOL, (V) OPEN HIGH SCHOOL PROGRAM, (VI) MADRASAH CLASSES, AND (VIT) REMEDIAL CLASSES, INCLUDING THE PAYMENT OF SALARIES, AUTHORIZED ALLOWANCES, AND OTHER BENEFITS OF LOCALLY-HIRED TEACHING AND NON- TEACHING 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 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,