.
a
 
Thirteenth Congress of the Republic 
First Regular Session 
Of the Philippines 
'I ' " 
- 
Introduced by Senator Edgardo J. Angara 
,., ' I .  
Studies show that out of every hundred Filipino children who enter Grade One only 69 
reach grade 6 and only 48 complete high school and 18 finish college. The dropouts come 
mostly from the poorest regions - like Bicolandia and Eastern Visayas - which have also 
fallen way behind the other regions in development. 
Throughout the years, the number of students entering the public schools continue to 
increase primarily because most families sent their children to public schools because of the 
unabated increase in tuition fees in private schools. 
In this regard, most of these public 
schools have become so congested and crowded thus, making it less conducive to learning. 
It is unfortunate that some public schools cannot anymore accommodate new students 
because of insufficient school facilities like classrooms, desks and textbooks. The continuous 
increase in the emolument in public schools every year and the pressing budgetary problems 
of the government aggravate the classroom and desk backlog in schools. 
The passage of the Expanded Government Assistance to Students and Teachers in 
Private Education (GASTPE) in 1998 offers many opportunities for the poor students who 
cannot afford to study in private schools by providing a financial assistance through the 
tuition fee supplements and education serJrice contracting scheme. 
Through the GASTPE law, the system of voucher system in tuition fee payment had 
been introduced. However, there is a need to further improve the system and increase the 
amount of assistance to students-grantees by amending some sections of the Expanded 
GASTPE law so that it can become more responsive to the needs of the students and the 
schools. 
For the past years of implementation, we have seen that the financial assistance given 
to the students through the GASTPE is way below the per capita cost spent by the government 
in public schools. Hence, there is a need to increase the amount of the financial assistance 
because of the growing needs of the students both in the secondary and tertiary levels. 
With the passage of this amendatory bill, we can improve the voucher support system 
provided to secondary and tertiary students whose incomes are below the poverty line and 
cannot be accommodated by public educational institutions due to lack of facilities. 
This 
way, more poor Filipinos will have access to higher levels of education - even in private 
education - which had been denied to them in the past. 
For the abovementioned reasons, approval of this bill is earnestly urged. 


Thirteenth Congress of the Republic 
1 
Of the Philippines 
1 
I 
*tj2; , J,’; 30 
:‘a h 
First Regular Session 
n 
S. N 
\8/ 
Introduced by Senator Edgardo J. Angara 
AN ACT 
AMENDING REPUBLIC ACT NO. 8545, OTHERWISE KNOWN AS THE “EXPANDED 
GOVERNMENT ASSISTANCE TO STUDENTS AND TEACHERS IN PRIVATE 
EDUCATION ACT” PROVIDING FOR AN EXPANDED VOUCHER OR COUPON 
SYSTEM IN SECONDARY AND TERTIARY EDUCATION, AND APPROPRIATING 
FUNDS THEREFOR. 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Republic Act 8545, otherwise known as the “Expanded Government Assistance 
to Students and Teacher in Private Education Act,” is hereby amended to read as follows: 
SEC. 2. Section 3 is hereby amended to read as follows: 
“Criteria for Assistance. The programs for assistance to STUDENTS shall be based 
on a set of criteria which shall include among others, tuition fees charged by the schools, 
socio-economic needs of each region giving priority to the 5th AND 6th LCASS 
MUNICIPALITIES, overall performance of the PRIVATE 
schools, the academic 
qualifications and the financial STATUS of the PRIVATE schools, as well as the RAIO OF 
PUBLIC SCHOOLS VIS A VIS PRIVATE SCHOOLS and size of student population IN 
THE PUBLIC SCHOOLS IN THE AREA.” 
“In addition to the forgoing criteria, within such reasonable time as the State 
Assistance Council may determine, student grantees shall be enrolled in schools which have 
accredited programs or are applying for accreditation as may be recognized by the respective 
State Assistance Council.” 
“Preference shall be given to students whose annual income is BLEOW THE 
POVERTY 
THRESHOLD 
INCOME 
AS 
MAYBE 
DETERMINED 
BY 
THE 
APPROPRIATE GOVERNMENT AGENCY.” 
THE STATE ASSISTANCE COUNCIL MAY ADJUST THE ANNUAL FAMILY 
INCOME QUALIFICATION DEPENDING ON THE CHANGES IN THE ECONOMIC 
CIRCUMSTANCES AND CONDITIONS OF THE COUNTRY TO ACCOMMODATE 
MORE BENEFICIARIES. 
“The programs of assistance under this Act shall be extended only to students who are 
citizens of the Philippines.” 
SEC. 3. Section 4 is hereby amended to read as follows: 
“Forms of Assistance. Assistance to private education shall consists of assistance to 
students and teachers.” 
“( 1) Tuition fee Supplements for students in private high schools including vocational 
(2) TRANSPORTATION AND/OR BOOK ALLOWANCES for secondary and 
and technical courses; 
coIlege students; 


(3) 
(4) 
(5) 
Scholarship grants to students graduating 
as valedictorians and 
EXPANSION OF THE voucher system of the Philippines Education 
Student Financial assistance Program ( PESFA) 
Expansion of the existing Educational Service Contracting Scheme; 
salutatorians from secondary schools; 
Tuition fee supplements to students in private colleges and universities 
Education Loan fund” 
(6) 
(7) 
“The following are forms of assistance to teachers and faculty in private education: 
1) 
2) 
College Faculty Development Fund” 
In-service training fund for teachers in private high schools 
SEC4. FOR PURPOSES OF THIS ACT, THE TUITION FEE CEILING FOR 
PARTICIPATING PRIVATE 
SCHOOLS 
IN 
THE 
EDUCATION 
SERVICE 
CONTRACTING’ SCHEME AND TUITION FEE SUPPLEMENTS FOR HIGH 
SCHOOL STUDENTS AND PRIVATE EDUCATION STUDENT FINANCIAL 
ASSISTANCE FOR COLLEGE STUDENTS IS SET AT SIX THOUSAND PESOS 
(P6,OOO) PER SEMESTER. THE TUITION FEE CEILING MAY SERVE AS A BASIS 
OF SELECTING / ACCREDITING SCHOOLS THAT WOULD LIKE TO 
PARTICIPATE IN THE PROGRAMS UNDER GASTPE. 
THE STATE ASSISTANCE COUNCIL SHALL REVIEW THE TUITION FEE 
CEILING’ONCE EVERY TWO YEARS AND MAKE THE ADJUSTMENT AS 
DEEMED NECESSARY. 
“The State Assistance Council shall have the discretion to allow the schools which charge 
higher tuition fee than the tuition fee ceiling to participate in the programs under 
GASTPE.” 
SEC 5. Section 5 of RA 8545 is hereby amended to read as follows : 
Tuition Fee Supplements in Private High Schools. 
1) Financial Assistance for tuition for students in private high schools shall be 
provided by the government through a voucher system in the following manner: 
For students enrolled in schools charging NOT MORE THAN 
SIX 
THOUSAND PESOS PER SEMESTER IN TUITION AND OTHER FEES, 
the government shall provide them with voucher in such an amount as may be 
determined by the council. Provided, That the government shall reimburse the 
vouchers from the schools concerned within one hundred twenty (120) days 
from the close of the registration period. PROVIDED FURTHER THAT THE 
AMOUNT OF TUITION FEE SUPPLEMENT SHALL BE AT LEAST 20% 
OF THE PER CAPITA COST IN PUBLIC HIGH SCHOOLS. 
THE STATE ASSISTANCE COUNCIL MAY IN SUBSEQUENT YEARS 
INCXEASE THE AMOUNT 
OF FINANCIAL ASSITANCE FOR 
STUDENTS UNDER THE TUITION FEE SUPPLEMENT SUBJECT TO 
THE AVAILAl3ILITY OF FUNDS. 
Assistance under Paragraph (1) , subparagraph (a) shall be guaranteed to all 
private high schools participating in the program for a number of slots as of the 
effectiv: iy of this Act as the total number of students who availed of tuition fee 
supplenlents for SCHOOL YEAR 2000-2001. Provided That the State Assistance 
Counci‘ may in subsequent years determine additional slots and/or additional 
particirlating high schools as may be deemed necessary. 
SEC 6. SC :t;m 6 is hereby amended as follows: 
HI(; SCHOOL TEXTBOOK ASSISTANCE FUND. 
FOR SCHOOLS 
?4OT MORE THAN SIX THOUSAND PESOS PER SEMESTER, THE 
CHARGI’ 
GOVERb c :”NT SHAT.TJ PROVIDE 
THE 
STUDENT 
WITH 
TEXTBOOK 


ALLOWANCE WHICH IS EQWALENT TO AT LEAST ONE THOUSAND PESOS 
(P1,OOO) A YEAR OR THE ANNUAL PER CAPITA TEXTBOOK ALLOCATION 
PER STUDENT FOR ACADEMIC SUBJECTS IN PUBLIC SCHOOLS, WHICHEVER 
IS HIGHER. PROVIDED THAT THE TEXTBOOK ALLOWANCE MAY BE GIVEN 
TO BENEFICIARIES OF TUITION FEE SUPPLEMENTS AND/OR EDUCATION 
SERVICE CONTRACTING SCHEME FOR THE HIGH SCHOOL STUDENTS AND 
PRIVATE EDUCATION STUDENT FINANCIAL ASSISTANCE FOR COLLEGE 
STUDENTS. 
SEC. 7. Section 7 is hereby amended as follows: 
EDUCATIONAL 
SERVICE 
CONTRACTING 
SCHEME. 
A) 
THE 
DEPARTMENT OF EDUCATION, CULTURE AND SPORTS SHALL CONTINUE 
TO ENTER INTO CONTRACTS WITH PRIVATE SCHOOLS WHEREBY THE 
GOVERNMENT SHALL PROVIDE DIRECT FINANCIAL ASSISTANCE TO THE 
STUDENTS WHO WANT TO ENROLL IN PRIVATE SCHOOLS BUT DO NOT 
HAVE THE FINANCIAL CAPABILITY TO AFFORD THE TUITION FEE IN THESE 
SCHOOLS. 
SEC 
“b)The Department shall also enter into contracts with private schools 
ACCREDITED BY THE DECS particularly in communities where THE PUBLIC 
SCHOOLS CANNOT ACCOMMODATE THE STUDENTS DUE TO THE 
INCREASING STUDENT POPULATION, in which case the Department shall 
PROVIDE FINANCIAL ASSISTANCE WHICH MAY COVER THE TUITION 
AND OTHER FEES OF STUDENTS WHO SHALL ENROLL-IN SAID 
PRIVATE SCHOOLS. 
c)FOR STUDENTS ENROLLED IN SCHOOLS CHARGING NOT MORE 
THAN SIX THOUSAND PESOS PER SEMESTER IN TUITION AND OTHER 
FEES, the amount of assistance to be given by the government shall be EQUAL 
to the per student cost in public high schools. 
d)The Department shall fully pay the subsidized amount to participating schools 
not later than one hundred eighty (180) days from the close of the registration 
period. 
e)The amount of assistance shall be allocated and distributed among the 16 
regions in proportion to the total population as well as the high school age 
population for the first school year ; 
f)The amount of assistance to private high schools participating in the program 
shall be guaranteed for a number of slots as of the effectivity of this Act as the 
number of students availing of educational service contracting for SCHOOL 
YEAR 2000-2001: Provided that the State Assistance Council may in subsequent 
years determine additional slots andor additional participating private high 
schools as may be deemed necessary.’’ 
g) 
IN CASES WHERE THE AMOUNT OF THE TUITION FEES AND 
OTHER FEES OF THE SCHOOL EXCEEDS THE AMOUNT OF SUBSIDY 
PRESCRIBED BY THE STUDENT ASSISTANCE COUNCIL, THE PRIVATE 
SCHOOL MAY SHOULDER THE CORRESPONDING BALANCE 
AS 
COUNTERPART FUNDING. 
h) THE STATE ASSISTANCE COUNCIL MAY IN SUBSEQUENT YEARS 
INCREASE 
THE 
AMOUNT 
OF 
FINANCIAL 
ASSISTANCE 
FOR 
STUDENTS 
UNDER 
THE 
ESC 
PROGRAM 
SUBJECT 
TO 
THE 
AVAILABILITY OF FUNDS. 
8. 
TRANSPORTATION 
ALLOWANCE. 
FOR 
THE 
STUDENT 
BENEFICIARIES OF THE EDUCATION SERVICE CONTRACTING AND TUITION 
FEES SUPPLEMENTS PROGRAM AT THE HIGH SCHOOL LEVEL AND PRIVATE 
EDUCATION STUDENT FINANCIAL ASSISTANCE AT COLLEGE LEVEL,WHO 
LIVE AT LEAST WITHIN 3 KILOMETER RADIUS FROM THE SCHOOL WHERE 
THEY ARE ENROLLED SHALL BE ENTITLED WITH A CORRESPONDING 
TRANSPORTATION ALLOWANCE WHICH SHALL BE DETERMINED BY THE 
STATE ASSISTANCE COUNCIL. 


SEC 9. 
ASSISTANCE TO COLLEGE FRESHMEN - 
Subparagraph (a) of 
Section 8 of RA 8545 is hereby amended as follows: 
THE 
VOUCHER 
SYSTEM OF PRIVATE 
EDUCATION 
STUDENT 
FINANCLAL ASSISTANCE ( PESFA) PROGRAM. 
THE GOVERNMENT SHALL 
PROVIDED UNDER THE PESFA PROGRAM COVERING THE TUITION FEE, 
BOOK 
ALLOWANCE 
AND/OR 
TRANSPORTATION 
ALLOWANCE 
AND 
STIPEND SO AS TO HELP THE STUDENTS COPE WITH THE INCREASING 
COST OF EDUCATION, SUBJECT TO THE AVAILAEULITY OF 
FUNDS. 
PROVIDED THAT THE TUITION FEE CEILING FOR SCHOOLS IS SLX 
THOUSAND PESOS ( P6,OOO) PER SEMESTER. PROVIDED FURTHER THAT 
SUCH FINANCIAL ASSISTANCE SHALL BE GRANTED TO DESERVING AND 
UNDERPRIVILEGED STUDENTS WHO SHALL BE SELECTED ON THE BASIS 
OF 
FAMILY 
INCOME, 
GEOGRAPHIC 
SPREAD AND RESULTS 
OF 
COMPETITIVE EXAMINATIONS GIVEN BY CHED FOR DEGREE COURSES 
PROVIDED FINALLY, THAT THE CHED SHALL DIRECTLY PAY THE AMOUNT 
COVERING THE TUITION FEE EXPENSES TO THE PARTICIPATING SCHOOLS. 
HOWEVER, THE STIPEND OF 
EACH STUDENT BENEFICIARY SHALL BE 
CLAIMED IN THE NEAREST CHED OR TESDA REGIONAL OFFICE. 
UNDERTAKE AN ANNUAL 10% INCREASE IN THE AMOUNT OF ASSISTANCE 
AND THE TESDA FOR NON-DEGREE VOCATIONAL /TECHNICAL COURSES. 
THE CHED SHALL REVIEW AND EVALUATE THE PRESENT COURSES 
OF STUDENTS WHICH ARE CONSIDERED PRIORITY IN THE GRANTING OF 
FINANCIAL ASSISTANCE TO MAKE THE LIST OF COURSES MORE RELEVANT 
TO THE NEEDS OF THE COUNTRY. 
FOR PURPOSES OF 
THIS ACT, AN UNDERPRIVILEGED STUDENT 
SHALL REFER TO A STUDENT WHOSE GROSS INCOME, IN ANY AND THAT 
OF THE COMBINED ANNUAL GROSS INCOME OF 
HIS/HER PARENTS IS 
BELOW THE POVERTY THRESHOLD INCOME. 
SEC. 10. SCHOLARSHP FUND IN PRNATE HIGH SCHOOLS, COLLEGES AND 
UNIVERSITIES. THE PARTICIPATING PRIVATE SCHOOLS IN THE GASTPE 
PROGRAM MAY INSTITUTIONALIZE COUNTERPART FUNDING TO FINANCE 
THE 
EDUCATION 
SERVICE 
CONTRACTING 
SCHEME, 
TEXTBOOK 
ASSISTANCE 
PROGRAM AND THE PRIVATE EDUCATION STUDENT 
FINANCIAL, ASSISTANCE PROGRAM. THE PRJYATE SCHOOLS ARE HEREBY 
ENJOINED TO PROVIDE A COUNTERPART OF AT LEAST 20% OF 
THE 
BENEFICLARIES. 
GOVERNMENT 
FINANCIAL ASSISTANCE GIVEN TO THE 
STUDENT- 
THE PIUVATE SCHOOLS WHICH ARE NOT PARTICIPATING IN THE 
PROGRAM MAY ALSO ALLOCATE A PORTION OF THEIR GROSS INCOME TO 
SCHOLARSHIP AND FINANCLAL ASSISTANCE FOR POOR BUT DESERVING 
STUDENTS. 
SEC 11. CONDITIONS FOR TUITION FEE SUBSIDY. 
ASSISTANCE PROVIDED 
IN THE PRECEDING SECTIONS SHALL BE GRANTED ON THE CONDITION 
THAT SEVENTY PERCENT ( 70%) OF THE AMOUNT SUBSIDIZED SHALL GO 
TO THE PAYMENT OF 
SALARES,WAGES, ALLOWANCES AND OTHER 
ADMINISTRATORS WHO ARE PRINCIPAL STOCKHOLDERS OF THE SCHOOL, 
AND MAY BE USED TO COVER INCREASES AS PROVIDED FOR IN THE 
COLLECTIVE BARGAINING AGREEMENTS EXISTING OR IN FORCE UPON 
THE EFFECTIVITY OF THIS ACT. PROVIDED THAT AT LEAST 20% SHALL GO 
TO THE IMPROVEMENT OR MODERNIZATION OF BUILDINGS, EQUIPMENT, 
LIBRARIES, LABORATORIES, GYMNASIA AND SIMILAR FACILITIES AND TO 
THE PAYMENT OF OTHER COSTS OF OPERATION. FOR THIS PURPOSE, THE 
SCHOOL SHALL MAINTAIN A SEPARATE RECORD OF ACCOUNTS FOR ALL 
ASSISTANCE RECEIVED FROM THE GOVERNMENT, ANY TUITION FEE 
TNCRFASF ANTI THF DFTA 1T Fn nTSPOSTTTON AND TJSE THEREOF. WHICH 
BENEFITS OF TEACHING AND NON-TEACHING PERSONNEL EXCEPT 


RECORD SHALL BE MADE AVAILABLE FOR PERIODIC INSPECTION AS MAY 
BE DETERMINED BY THE STATE ASSISTANCE COUNCIL. 
SEC .12. APPROPRIATIONS 
THE DEPARTMENT OF EDUCATION CULTURE AND SPORTS MAY UTILIZE 
ITS SAVINGS FROM ANY ITEM OF APPROPRIATION IN FISCAL YEAR 2001. 
PROVIDED THAT ANY DEFICIENCY SHALL BE TAKEN FROM ANY OR ALL 
OF THE FOLLOWING SOURCES: 
1. 
TWENTY PERCENT (20%) OF 
THE TRAVEL TAX AND 
AIRPORT DEPARTURE TAX COLLECTIONS; 
2. 
TEN PERCENT (10%) OF ANY FUNDS COLLECTED BY 
THE SUGAR REGULATORY ADMINISTRATION OF THE 
PHILIPPINES COCONUT AUTHORITY 
3. 
TEN PERCENT ( 10%) OF THE NET INCOME OF THE 
DEVELOPMENT ACADEMY OF THE PHILIPPINES 
4. 
PORTIONS OF 
THE OVERSEA§ WELFARE FUND TO 
BENEFIT THE DEPENDENTS OR CHILDREN OF OVERSEAS 
WORKERS; 
5. 
ANY 
OTHER 
LUMP 
SUM 
APPROPRIATIONS 
OR 
COLLECTIONS UNDER THE SUPERVISION AND CONTROL 
OF THE OFFICE OF THE PRESIDENT. 
PROVIDED, FINALLY THAT THE TOTAL AMOUNT MADE AVAILABLE TO 
CARRY OUT THE PURPOSES OF THIS ACT SHALL NOT EXCEED ONE BILLION 
PESOS (P1,000,000,000,) FOR FISCAL YEAR 2001. THEREAFTER, SUCH 
AMOUNT AS MAY BE NECESSARY FOR IT§ CONTINUED IMPLEMENTATION 
SHALL BE INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS ACT. 
SEC 13. 
Penalties. In case of any violation of the provisions of this Act or the 
rules and regulations promulgated pursuant thereto by an institution, the Department of 
Education, Culture and Sports ( DECS) or the Commission on Higher Education, upon 
the recommendation of the State Assistance Council, may bar the institution from 
participating in or benefiting from the programs of this Act, and from other programs of 
the DECS and the CHED, without prejudice to administrative and criminal charges as 
may be filed against the school and or its responsible officers under existing laws. 
SEC 14. 
The Senate Committee on Education, Culture and Arts and House 
Committee on Basic Education shall oversee the implementation of the Expanded 
Voucher System in coordination with the State Assistance Council. The State Assistance 
Council shall submit to Congress an annual accomplishment report on the 
implementation of this Act. 
SEC 15. 
The State Assistance Council led by the Department of Education, Culture 
and Sports, Commission on Higher Education and Technical Education and Skills 
Development Authority shall formulate rules and regulations necessary for the smooth 
iinplenientation of this Act within a period of sixty (60) days from the day of its 
effectivity. 
SEC 16. 
Repealing Clause. All laws and decrees and such letters of instruction, 
rules and regulations or parts thereof which are inconsistent with this Act are hereby 
repealed or modified accordingly. 
SEC 17 
Separability Clause. If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions not affected thereby. 
SEC 18. 
pubIication in at least two newspapers of general circulation. 
Effectivity Clause. This Act shall take effect immediately upon its