THIRTEENTH CONGRESS OF THE 
First Regular Session 
Republic of the Philippines 
SENATE 
,’ 
S. B. No. 
Introduced by SENATOR LUISA “LOP P. EJERCITO ESTRADA 
EXPLANATORY NOTE 
Article XIV, Section 1 of the Constitution provides that ‘Yhe 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, education has always 
enjoyed the highest budgetary priority in the annual budget of government as mandated 
by the Constitution itself. 
However, the meager resources of government led to the stagnation of budgetary 
allocation across all sectors including education. As a result, the resources provided for 
education has not kept pace with the growing student population. Massive backlog in 
classrooms, textbooks, desks and even teachers has continued to plague the public 
education system. 
’. , 
The passage of the Government Assistance to Students and Teachers in Private 
Education (GASTPE) Program in 1989 and its subsequent amendment thereto in 1998 
tapped the potential of the private education system to fulfill the Constitutional mandate 
to make education accessible to all Filipinos. It made use of the otherwise unutilized 
capacity of the private schools to cater to students which cannot be accommodated by the 
public education system. 
Since its inception in 1989, GASTPE has provided support to over 700,000 
beneficiaries in private schools. It has helped more than 1,400 private schools which 
enrolled in the program. The program has been very successful but has not achieved full 
potential due to budgetary constraints. According to the Department of Education, at least 
P2 biIlion pesos is needed on top of the annual appropriation for the program to achieve 
the desired level of 500,000 beneficiaries at P 4,000 per grantee. 
In addition to this, the scarce resource for the program has made its appropriation 
centered on the student beneficiary and have left little or none at all for teachers who are 
also intended to be provided with the proper training. The absence of any appropriation 
for the hiring of new teachers in the 2003 budget has necessitated support for teachers in 
private schools enrolled in the program. 
This bill seeks to increase the funding for the GASTPE Program in order to 
address the deficiency in the public education sector. At the same time it allocates some 
P 1 billion pesos exclusively to teachers to upgrade their training skills for the delivery of 
quality education to students. 


In addition, it seeks to institute a voucher system in place of the current tuition fee 
supplement program to further improve benefits to students enrolled in private schools. 
In view of the foregoing, the passage of this measure is earnestly sought. 
. 
YUISA “LOI” P. ~JERCITO ESTFUDA 
Senator 
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THIRTEENTH CONGRESS OF THE 
1 
First Regular Session 
) 
REPUBLIC OF THE PHILIPPINES 
) 
SENATE 
I 
S. B. No. 
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1
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Introduced by SENATOR LUISA "LOI" P. EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR AN EXPANDED VOUCHER SYSTEM IN THE ELEMENTARY 
AND SECONDARY EDUCATION, AMENDING FOR THE PURPOSE REPUBLIC 
ACT NO, 6728, AS AMENDED 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assem bled: 
SECTION 1. 
Section 2 of Republic Act No. 6728,othenvise known as the 
"Government Assistance to Students and Teachers in Private Education Act", as 
amended, is hereby hrther amended to read as follows: 
"SEC. 2. Declaration ofPolicy. - 
It is a declared policy of the State in 
conformity with the mandate of the Constitution, to promote and make quality 
education accessible to all Filipino citizens. The State also hereby recognizes the 
complementary roles of public and private educational institutions in the 
educational system and the invaluable contribution that the private schools have 
made and will make to education. For these purposes, the State shall provide the 
mechanisms to improve quality in private education by maximizing the use of 
existing resources of * private education, recognizing in the process * the 
government's responsibility to provide basic elementary and secondary education, 
post-secondary vocational and technical education and higher education as having 
priority over its other functions. 
"Elementary education is the first six (6) years of basic education, 
excluding pre-school and grade seven, the completion of which is attested by a 
certificate issued by or with permission of the Department of Education[, Culture 
and Sports]. Secondary education is the next four (4) years of basic education, the 
completion of which is attested by a high school diploma issued by or with 
permission of the Department of Education[, Culture and Sports]. 
"Post-secondary education may be education and training in non-degree 
vocational and technical courses offered in post-secondary vocational and 


technical institutions or education in degree courses offered by higher educational 
institutions, the completion of which are attested by a certificate or diploma 
issued by or with permission of the Technical Education and Sltills Development 
Authority (TESDA) os: the "Commission on Higher Education (CHED); 
respectively. 
SEC. 2. Section 3 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC. 3. Criteria for Assistance. - 
The programs for assistance shall be 
based on a set of criteria which shall include, among others, tuition AND OTHER 
fees charged by the schools, the socio economic needs of each region giving 
priority to [the Social Reform Agenda (SRA) provinces] THE POOREST 
REGIONS, PROVINCES, OR MUNICIPALITIES overall performance of the 
schools, the academic qualifications and the financial needs of the students and the 
teachers and the financial needs of the schools, as well as the geographic spread 
and size of student ENROLLMENT. 
"In addition to the foregoing criteria, within such reasonable time as the 
respective State Assistance Council may determine, student grantees under the 
Private Education Student Financial Assistance Program 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 family income is 
[not more than Seventy-two thousand pesos (P72.000.00) or such amounts as may 
be determined by the respective councils, as defined hereinafter] BELOW THE 
POVERTY THRESHOLD INCOME LEVEL IN THEIR RESPECTIVE 
REGION, PROVINCE, OR MUNICIPALITY AS MAYBE DETERMINED BY 
THE APPROPRIATE GOVERNMENT AGENCY, OR IN THE ABSENCE'OF 
SUCH DATA, THE NATIONAL POVERTY THRESHOLD INCOME LEVEL 
AS 
MAYBE 
DETERMINED 
BY 
THE 
NATIONAL 
ECONOMIC 
DEVELOPMENT AUTHORITY. 
"For purposes of this Act, programs of assistance to students and teachers 
of private post-secondary vocational and technical institutions and higher 
educational institutions shall likewise be extended to students and teachers of 
community colleges in degree and non-degree programs. Implementation of the 


program shall encourage students to undergo post-secondary vocational and 
technical and higher education courses in the same region where their families 
reside. 
"The programs of assistance under this Act shall be extended only to 
students who are citizens of the Philippines. 
"The State Assistance Council, jointly with the Department of Education 
(DepEd), [Culture and Sports (DECS)], the CHED and the TESDA shall 
formulate measurement standards for the evaluation of the quality of courses as 
well as the standing and status of the recipient institutions. 
Within five ( 5 )  years from the approval of this Act, the assistance shall be 
given to schools: Provided, That The present allocation of the tuition fee and 
other income of the schools shall be used at the same proportion and allocation as 
provided by law 
SEC. 3. Section 4 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC. 4. Forms of Assistance. - Assistance to private education shall 
consist of assistance to students [and], assistance to teachers AND ASSISTANCE 
TO SCHOOLS. 
"The following are forms of assistance to students in private education: 
"(1) 
Tuition 
fee 
supplements 
for 
students 
in 
private 
[highIELEMENTARY AND SECONDARY schools, including 
students in vocational and technical courses; 
[High School] Textbook Assistance Fund: Provided, That the 
textbook assistance per student in private ELEMENTARY OR 
SECONDARY [high] schools shall be determined by the council 
and shall not exceed what students in public ELEMENTARY OR 
SECONDARY [high] schools are provided on a per student basis 
[under a comprehensive textbook, program of the Secondary 
Education Development Program (SEDP)] : Provided, further, That 
the textbook assistance shall be granted only to beneficiaries of 
"(2) 
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tuition fee supplements and educational service contracting scheme 
provided in this Act; 
Expansion of the existing Educational Service Contracting (ESC) 
Scheme; 
The voucher system of the Private Education Student Financial 
Assistance Program PESFA; 
Scholarship grants to students graduating as valedictorians and 
salutatorians from ELEMENTARY AND secondary schools; 
Tuition fee supplements to students in private colleges and 
universities; and] 
Education Loan Fund. 
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"The following are forms of assistance to teachers and faculty in private 
education: 
"(1) 
In-service 
training 
fund 
for teachers 
in private 
[high] 
ELEMENTARY OR SECONDARY schools; and 
"(2) 
College Faculty Development Fund. 
THE FOLLOWING ARE FORMS OF ASSISTANCE TO PRIVATE 
SCHOOLS: 
(1) 
(4) 
UTILIZATION OF THEIR UNUSED CAPACITY THROUGH 
THE EXPANDED EDUCATION SERVICE CONTRACTING 
SCHEME; 
SCHOLARSHIPS FOR QUALIFIED ELEMENTARY AND 
SECONDARY 
TEACHERS 
ENROLLED IN QUALITY 
GRADUATE PROGRAMS; 
PARTICIPATION IN GOVERNMENT FUNDED IN-SERVICE 
TRAINING 
FOR 
PRIVATE 
ELEMENTARY 
AND 
SECONDARY TEACHERS; 
ACCESS TO GOVERNMENT FUNDED LABORATORY 
FACILITIES 
ESPECIALLY 
FOR 
SCIENCE 
AND 
TECHNOLOGY. 
SEC. 4. Section 5 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
. 
'. . 


"SEC. 5. Tuition Fee Supplements for Students in Private [High] 
ELEMENTARY AND SECONDARY Schools. - 
(1) 
Financial Assistance for tuition [for] OF students in private [high] 
ELEMENTARY AND SECONDARY schools shall be provided 
by the government through a voucher system in the following 
manner: 
"(a) 
For students enrolled in schools charging an amount as 
may be determined by the State Assistance Council, the 
government shall provide them with a 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. 
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~ 
"(2) 
Assistance under paragraph (l), subparagraph a) shall be 
guaranteed 
to 
all private 
[high] 
ELEMENTARY 
AND 
SECONDARY schools participating in the program for a number 
of slots as of the effectivity of this Act as the total number of 
students who availed of tuition fee supplements for school year 
1997-1998: Provided, That the State Assistance Council may in 
subsequent years determine additional slots and/or additional 
participating ELEMENTARY AND SECONDARY [high] schools 
as may be deemed necessary." 
SEC. 5. Section 6 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC. 6. [High School] Textbook Assistance Fund. - There shall be 
established in the Department of Education[, Culture and Sports (DECS)], a 
[High School] Textbook Assistance Fund, so that assistance on a per student basis 
shall be given to students enrolled in private schools exclusively for the purchase 
of ELEMENTARY OR SECONDARY [high] school textbooks[, in support of 
the implementation of the Secondary Education Development Program]: 
Provided, That the textbook assistance per student in private ELEMENTARY OR 
SECONDARY [high] schools shall be determined by the council and shall not 
exceed what students in public 
ELEMENTARY OR SECONDARY [high] 
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schools are provided on a per student basis, : Provided, further, That the textbook 
assistance shall be granted only to beneficiaries of tuition fee supplements and 
educational service contracting scheme provided in this Act. 
SEC. 6. Section 7 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC. 7. Expansion of the Existing Educational Service Contracting 
(ESC) Scheme. - 
(a) 
The Department of Education [, Culture and Sports (DECS)] shall 
continue to enter into contracts with private schools whereby the 
government shall shoulder the tuition and other fees of 
ELEMENTARY AND SECONDARY [high] school students who 
shall enroll in private [high] schools under this program. 
PRIORITY SHALL BE GIVEN TO PRIVATE SCHOOLS IN 
COMMUNITIES WHERE THE PUBLIC SCHOOLS CAN NO 
LONGER ACCOMMODATE THE STUDENTS DUE TO THE 
INCREASE IN STUDENT POPULATION, who shall enroll in 
private [high] schools under this program. 
.
.
 . 
"(b) 
The Department shall also enter into contracts with private schools 
in communities where there are no public ELEMENTARY OR 
SECONDARY [high] schools, in which case the Department shall 
shoulder the tuition and other fees of students who shall enroll in 
said private school 
The amount of assistance to be given by the government under this 
"(c) 
section shall not exceed that determined as the per student cost in 
public [high] ELEMENTARY AND SECONDARY 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 AND THE NUMBER OF SLOTS 
SHALL BE DETERMINED BY THE STATE ASSISTANCE 
COUNCIL AND ALLOCATED [shall be 
allocated and 
distributed] among the sixteen (1 6)regions in proportion to the 
total population as well as the [high] ELEMENTARY AND 
SECONDARY school age population for the first school year: 
Provided, That starting school year 1998, an equalization scheme 
shall be implemented by the State Assistance Council. 


"(0 The amount of assistance to private [high] ELEMENTARY AND 
SECONDARY 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 
assistance for school year 1997-1998: Provided, That the State 
Assistance Council may, in subsequent years determine additional 
slots andor additional participating private [high] ELEMENTARY 
AND SECONDARY schools as may be deemed necessary. 
SEC. 7. Section 8 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC. 8. Assistance to College Freshmen. - 
(a) The Voucher System of 
Private Education Student Financial Assistance (PESFA) Program. The existing 
Private Education Student Finahcial Assistance (PESFA) Program which covers 
degree and non-degree vocational/technical courses shall be expanded so that all 
qualified enrolling first year students can benefit from a scholarship, plus an 
allowance. Such financial assistance shall be granted to deserving underprivileged 
students, who shall be selected on the basis of family income, geographic spread 
and results of competitive examinations to be given by the CHED for degree 
courses and the TESDA for non-degree vocational/technical courses in all 
secondary schools in coordination with the [DECS] DepEd. The program shall be 
equitably allocated to provinces and cities in accordance with regional and 
national plans to priority courses as determined by the CHED and the TESDA. 
'. . 
. 
"For purposes of this Act, an underprivileged student shall refer to a 
student whose gross income, if any, and that of the combined annual gross 
income of hidher parents do not exceed [Seventy-two thousand pesos 
(P72,000.00)] THE POVERTY THRESHOLD INCOME LEVEL IN THEIR 
RESPECTIVE REGION, PROVINCE, OR MUNICIPALITY AS MAYBE 
DETERMINED BY THE APPROPRIATE GOVERNMENT AGENCY, OR IN 
THE 
ABSENCE 
OF 
SUCH DATA, THE NATIONAL 
POVERTY 
THRESHOLD INCOME LEVEL AS MAYBE DETERMINED BY THE 
NATIONAL ECONOMIC DEVELOPMENT AUTHORITY. 
SEC. 8. Section 12 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 


3
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~ 
"SEC. 12. 
In-sewice Training Fund (Inset Fund). - 
For the purpose of 
improving the quality of teaching in private secondary education, there is hereby 
established in the Department of Education, [Culture and Sports] an Inset Fund to 
provide for the upgrading of knowledge and teaching competencies in critical 
subject areas and for the modernization of teaching techniques and strategies, 
including training in the use of computers and of other multi-media educational 
technologies to assist instruction: Provided, That the Inset Fund shall be available 
only to qyalified licensed teachers in participating private high schools as 
determined by the State Assistance Council: Provided, fwther, That the amount of 
Inset Fund available to private" ELEMENTARY AND secondary education shall 
not exceed that available to public ELEMENTARY AND SECONDARY 
education on a per capita basis. 
SEC. 9. Section 14 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC. 14. 
Teachers' Salary Subsidy Fund. - A Teachers' Salary Subsidy 
Fund is hereby established in the [DECS] DepEd to grant government subsidy to 
teachers in private [high] ELEMENTARY AND SECONDARY schools 
participating in the programs of assistance provided in this Act: Provided. That 
the total monthly salary which includes the subsidy to be received by such private 
[high] ELEMENTARY AND SECONDARY school teachers shall not be more 
than eighty percent (80%) of the salary of his counterpart in the public sector: 
Provided, further, That the amount of monthly subsidy shall not exceed the 
amount of any monthly salary increase that teachers in public [high] 
ELEMENTARY AND SECONDARY schools shall after the effectivity .of .this 
Act hereinafter receive: Provided, further, That private [high] ELEMENTARY 
AND SECONDARY school teachers qualified to receive subsidy under this Act 
are duly licensed by the Professional Regulation Commission: Provided, further, 
That the government shall provide them with a voucher for the salary subsidy 
which shall be reimbursed directly to the teachers within sixty (60) days after the 
close of the school year upon submission of proof of qualification and actual 
teaching service in a participating private [high] ELEMENTARY OR 
SECONDARY school: Provided, further, That the present allocation out of 
increases from tuition and other income shall be maintained: Provided, finally, 
That in case of insufficiency of funds, priority shall be given to married teachers 
supporting a family. 
' 


SEC. 10. Section 15 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC. 15. 
Program Administration/Rules and Regulations. 
The 
State Assistance Council shall be responsible for policy guidance and direction, 
monitoring and evaluation of new and existing programs, and the promulgation of 
the rules and regulations, while the Department of Education, [Culture and 
Sports], the TESDA and the CHED shall be responsible for the day to day 
administration and program implementation for the programs of assistance to 
private ELEMENTARY AND secondary education, post-secondary vocational 
and technical education and higher education, respectively. Likewise, it may 
engage the services and support of any qualified government or private entity 
SUCH AS THE FUND FOR ASSISTANCE TO PRIVATE EDUCATION 
(FAPE) AS A PERMANENT SECRETARJAT for its implementation. 
"The State Assistance Council, hereinafter known as the Council, shall be 
headed by the Secretary of Education, [Culture and Sports] as chairperson, the 
chairperson of the CHED and the director-general of the TESDA as co- 
chairpersons, with representatives from the National Economic and Development 
Authority, the Department of Budget and Management, the Department of 
Science and Technology, and representatives from duly organized nationwide 
associations of teachers, students, parents, and school administrators concerned 
with ELEMENTARY, secondary, post-secondary vocational and technical 
education and higher education as members. The last FOUR (4) [three (3)] 
members shall be appointed by the Council upon the recommendation of their 
respective sectors for a term of THREE (3) [one (l)] school year subject to re- 
appointment [for a maximum term of four (4) school years] UPON THE 
RECOMMENDATION OF THEIR RESPECTIVE SECTORS. A representative 
each from the Committees on Education of both Houses of Congress shall be 
designated resource persons to the Council. 
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, 
"The Council shall meet, from time to time, as the need arises, to assess 
the effectivity of the programs and to ensure that the ELEMENTARY AND 
secondary schools, post-secondary vocational and technical institutions and 
higher educational institutions where student recipients are enrolled continue to 
provide quality education. For this purpose, the Council shall establish criteria, to 
determine which ELEMENTARY AND secondary schools, post-secondary 
vocational and technical institutions and higher educational institutions may 


continue to enroll students and teacherdfaculty as recipients of government 
assistance under this Act. 
SEC. 11. Section 16 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC. 16. 
Appropriations. - 
The amount needed to implement these 
programs shall be provided for in the Annual General Appropriations Act. [for] 
BEGINNING the year [1998] 2004. The ANNUAL appropriation of [One billion 
pesos (PI ,000,000,000.00) already appropriated under the General Appropriations 
Act of 1998 shall be used for this purpose] THE DepEd TO CARRY OUT THE 
PROVISIONS OF THIS ACT SHALL BE INCREASED TO THREE BILLION 
PESOS (P3,000,000,000) OF WHICH THE AMOUNT OF ONE BILLION 
PESOS (P1,000,000,000) SHALL BE ALLOCATED AS ASSISTANCE TO 
ELEMENTARY 
AND 
SECONDARY 
TEACHERS 
OF 
THE 
PARTICIPATING SCHOOLS. LIKEWISE, TO DO THE SAME, THE CHED 
AND TESDA APPROPRIATIONS SHALL BE INCREASED TO FIVE 
HUNDRED MILLION (P500,000,000) AND TWO HUNDRED FIFTY 
MILLION (P250,000,000) RESPECTIVELY. 
"All funds appropriated for this purpose shall be constituted as a trust fund 
to be administered by the State Assistance Council, which shall be SEPARATE 
AND DISTINCT FROM THE REGULAR APPROPRIATIONS OF THE DepEd 
AND SHALL BE RELEASED BY THE DepEd, CHED AND TESDA 
DIRECTLY TO THEIR RESPECTIVE PARTICIPATING SCHOOLS [directly 
and automatically released to the different regional offices of the DECS]. 
SEC. 12. Section 17 of Republic Act No. 6728, as amended, is hereby further 
amended to read as follows: 
"SEC, 17. 
Penalties. - In case of violations of the provisions of this 
Act or the rules and regulations promulgated pursuant thereto by an institution, 
the Department of Education, [Culture and Sports,] the TESDA and the 
CHED, upon the recommendation of the Council, may bar the institution'from 
participating in or benefiting from the programs of this Act, and from other 
programs of the Department, without prejudice to administrative and criminal 
charges as may be filed against the school and/or its responsible officers under 
existing laws. 
,
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epealing CIause. - All laws, decrees and such letters of instructions, 
rules and regulations or parts thereof which are inconsistent with this Act are hereby 
repealed or modified accordingly. 
SEC. 14. 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. 15. Effectivity Clause. - This Act shall take effect immediately upon its 
publication in two newspapers of general circulation. 
Approved, 
c:\precy\expanded voucher system.doc' 
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