NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. No. 1492
Renats;
''iBffiCP of tl)p
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
AMENDING REPUBLIC ACT NO. 7880, OTHERWISE KNOWN AS "AN ACT 
PROVIDING FOR THE FAIR AND EQUITABLE ALLOCATION OF THE 
DEPARTMENT OF EDUCATION BUDGET FOR CAPITAL OUTLAY"
EXPLANATORY NOTE
Article XIV, Section 5, Paragraph 5 of the 1987 Constitution emphasizes that: 
"The State shall assign the highest budgetary priority to education." The Department 
of Education (DepEd) reported more than 27.1 million students enrolled for the current 
school year. Also, DepEd has noted that it lacks around 91,000 classrooms, based on 
their survey conducted among their regional offices. Current data showed that areas 
in Metro Manila and CALABARZON are still at the student-classroom ratio of 68:1. In 
Quezon City, there were 10 out of 158 schools that could not implement the full 
resumption of face-to-face classes due to lack of classrooms.
With the data stated above, the disparity between the number of students and 
the number of school facilities is a problem acknowledged by the State. The number 
of educational facilities built does not meet the yearly building requirements caused 
by the continuous increase in enrolment. The shortage in the number of public school 
buildings in our country has always been a perennial problem associated with the 
deteriorating quality of our educational system. It is something the State should take 
notice of and fix immediately for the future of our nation's youth.
This bill seeks to create a comprehensive program, which will address the 
problem of classroom shortage. A salient feature of this bill is the provision of build- 
operate-transfer, buiid-lease-transfer, build-transfer, rehabilitate-operate transfer.


and other contractual arrangements that will allow the use of both government and 
private funds to finance the construction of needed school buildings, and the creation 
of an inter-agency committee to formulate and ensure the effective implementation 
of the program by the Department of Education (DepEd). The program also provides 
for the integration of all the necessary information for the effective monitoring and 
maintenance of existing school buildings. It is hoped that with the passage of this bill, 
class sizes will be reduced to a manageable level for a more conducive learning 
environment for the children and thus result in the improvement in the quality of their 
education.
In view of the foregoing, the passage of this bill into law is earnestly sought.
RAMON BOftlG REVILLA, JR.


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NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1492
'22 NOV-9 P2 31
RECEiVtD BV,
Introduced by SENATOR RAMON BONG REVILLA, JR.
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AN ACT
AMENDING REPUBLIC ACT NO. 7880, OTHERWISE KNOWN AS "AN ACT 
PROVIDING FOR THE FAIR AND EQUITABLE ALLOCATION OF THE 
DEPARTMENT OF EDUCATION BUDGET FOR CAPITAL OUTLAY"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress Assembled:
Section 1. Republic Act (RA) No. 7880 is hereby amended, and subsequent 
sections thereby renumbered, by inserting a new Section 3, to read as follows:
"SEC. 3. COVERAGE. - THE PROVISIONS OF THIS ACT COVER 
ALL FUNDS AND BUDGET APPROPRIATED AS CAPITAL OUTLAY 
FOR THE DEPARTMENT OF EDUCATION (DEPED) INCLUDING,
BUT NOT LIMITED TO, THE FUNDS APPROPRIATED FOR THE 
SCHOOL BUILDING PROGRAM AND LOCALLY-FUNDED 
PROJECTS OF THE DEPARTMENT OF EDUCATION."
Sec. 2. Section 3 of the same Act is hereby amended to read as follows:
"Sec. [3] 4. Definition of Terms. - As used in this Act, the following 
terms are hereby defined as follows:
a) Capital Outlay - refers to the provisions of the General 
Appropriations Act, particularly those pertaining to the budget of the 
[BEGS] DEPED for elementary and secondary education for (i) the 
acquisition and improvement of sites; (ii) the construction.


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replacement, rehabilitation and repair of buildings, classrooms, 
libraries, workshops, toilets AND SANITATION FACILITIES and 
other structures; and (iii) [furniture, fixtures,---and-oquipmcnt such 
as, but not limited to> desks, chairs> faboratory and - workshop
implements, computers, books,} OTHER PROPERTY, PLANT AND 
EQUIPMENT IN ACCORDANCE WITH THE CURRENT 
GOVERNMENT ACCOUNTING STANDARDS PRESCRIBED BY 
THE COMMISSION ON AUDIT, SUCH AS FURNITURE, 
FIXTURES, EQUIPMENT, COMPUTERS, and the other basic and 
essential tools for learning whose beneficial use shall exceed one (1) 
year; [and]
b) CLASSROOM - REFERS TO A STRUCTURE OR BUILDING 
INTENDED FOR INSTRUCTIONAL PURPOSES, INCLUDING 
CHAIRS, DESK AND OTHER SIMILAR FIXTURES; AND
c) Classroom Shortage - refers to the number of classrooms whose 
construction, in considering the number of students divided by the 
existing number of classrooms, shall result in a student-classroom of 
[4Sfi] 40:1; classrooms, UNDER THIS DEFINITION, shall mean 
those exclusively used for instructional purposes and shall exclude 
offices, libraries, laboratories, workshops and the like."
Sec. 3. Section 4 of the same Act is hereby amended to read as follows:
"Sec. [4] 5. Allocation of Appropriation. - Notwithstanding any 
provision of the law to the contrary, the annual [DECS] DEPED budget 
for capital outlay, as defined in Section [3] 4(a), shall be allocated 
among the legislative districts in the
[(a) on the first year of the cffcctivity of this Act:
(l)-Thirty percont (30%) of the total capital outlay to bo allocated pro
rata according to each legislative district's student population -m
rciatien to-tho total student population of the country;


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(2) Sixty percent (60%) of the total capital outlay to be allocated only
among those IcgiGlativc districts with clasGroom shortages as dcfinod
in -Section 3 (b), pro-rata to the total-ciasGroom shortage of the
country pursuant to Section 3 (b) as determined by DECS; and
(3) -Ten percent (10%) to be allocated in accordance with the
implementation of the policy of this Act as may be determined by the
DEGSt
(b) Qn-thc second year and every year thereafter:
(1) Fifty percent (50%) of the total capital outlay to be allocated pro-
rota-according to each legislative district's student population in
relation to the total-student population of the country;
(2) Forty-percent (10%)-of the total capital outlay to be allocated only
among those legislative districts with classroom shortages; - as
defined in Sections (b), pro-rata to the total classroom shortage-of
the country pursuant to Section 3(b) as determined-by the DEC-S,-
(3) Ten percent (10%) to be allocated in accordance with the
implementation of the policy of this Act as may be determined by the
DEGSr}
(a) TEN PERCENT (10%) OF THE TOTAL CAPITAL OUTLAY TO BE 
ALLOCATED PRO-RATA ACCORDING TO EACH LEGISLATIVE 
DISTRICT'S STUDENT POPULATION IN RELATION TO THE 
TOTAL STUDENT POPULATION OF THE COUNTRY;
(b) EIGHTY PERCENT (80%) OF THE TOTAL CAPITAL OUTLAY 
TO BE ALLOCATED ONLY AMONG THOSE LEGISLATIVE 
DISTRICTS WITH CLASSROOM SHORTAGES, PRO-RATA TO 
THE TOTAL CLASSROOM SHORTAGE OF THE COUNTRY, 
PURSUANT TO SECTION 4(C) AS DETERMINED BY THE 
DEPED; AND
(c) TEN PERCENT (10%) TO BE ALLOWED IN ACCORDANCE 
WITH THE IMPLEMENTATION OF THE POLICY OF THIS ACT 
AS MAY BE DETERMINED BY THE DEPED."


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Sec. 4. Section 5 of the same Act is hereby amended to read as follows:
"Sec. [S] 6. Use of Allocation. -The total amount allocated herein shall 
be used exclusively for capital outlay pursuant to the educational 
priorities of the legislative district, as determined by the [DECS] DEPED 
upon prior consultation with the representative of each legislative 
district: Provided, That the primary objective in the use of any allocation 
shall be to eliminate SCHOOL BUILDING/classroom shortages if any: 
PROVIDED, HOWEVER, THAT SCHOOL BUILDING/CLASSROOM 
APPROPRIATE NUMBER OF TOILETS AND/OR SANITATION 
FACILITIES SHALL ALSO BE CONSTRUCTED IN ACCORDANCE 
WITH THE SCHOOL SANITATION AND HEALTH SERVICES 
CHAPTER OF THE CODE ON SANITATION OF THE PHILIPPINES 
(CHAPTER VI, P.D. 856): Provided, further, that any amounts allocated 
in accordance with [subparagraph (1) of paragraphs (a) and (b)] 
PARAGRAPH (a) of the preceding section shall be used only for the 
acquisition or improvement of school sites, construction of school 
buildings and classrooms and the purchase of material or equipment 
that directly aid in education: Provided, furthermore, that the amount 
so appropriated in accordance with [subparagraph (2) of paragraphs (a) 
and (b)] PARAGRAPH (b) of the same section shall be used exclusively 
for the construction of new school buildings AND/OR CLASSROOMS: 
Provided, finally, that if the amount so appropriated in [subparagraph 
(2) of paragraphs (a) and (b)] PARAGRAPH (b) should exceed the 
amount required to meet the classroom shortage. The excess shall be 
integrated with [subparagraph (1) of paragraphs (a) and (b)] 
PARAGRAPH (a) of the same section excluding capital outlays of 
division offices, regional and central offices.
Sec. 5. Before Section 6 of RA 7880, insert two (2) new sections to read as
follows:


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"SEC. 7. INCREASE IN THE ANNUAL BUDGET 
ALLOCATION. - THE BUDGET ALLOCATION PROVIDED FOR THE 
CAPITAL OUTLAY OF THE DEPED UNDER THIS ACT SHALL BE 
INCREASED ANNUALLY BY TWENTY PERCENT (20%) TO 
COMPLY WITH THE TARGETED CLASSROOM-STUDENT RATIO 
AND TO DECREASE CLASSROOM SHORTAGE IN THE COUNTRY.
SEC. 8. REPORTORIAL REQUIREMENT. - THE 
DEPARTMENT OF BUDGET AND MANAGEMENT (DBM), THE 
DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS (DPWH),
AND THE DEPARTMENT OF EDUCATION (DEPED) ARE HEREBY 
REQUIRED TO SUBMIT TO THE RESPECTIVE COMMITTEES ON 
EDUCATION OF BOTH HOUSES OF CONGRESS AN ANNUAL 
REPORT ON THE RELEASE AND UTILIZATION OF THE CAPITAL 
OUTLAY UNDER THIS ACT: PROVIDED, THAT SUCH 
SUBMISSION SHALL BE SEPARATE AND DISTINCT FROM THE 
REPORTS THEY SUBMIT TO CONGRESS RELATED TO 
DELIBERATIONS ON THE ANNUAL GENERAL APPROPRIATIONS 
ACT."
Sections 6 and 7 of Republic Act No. 7880 are hereby renumbered as sections 
9 and 10 respectively.
Sec. 6. Section 8 of the same Act is hereby amended and accordingly 
renumbered to read as follows:
SEC. [8] 11. PENAL CLAUSE. - ANY VIOLATION OF THE 
PROVISIONS OF THIS ACT SHALL CONSIDERED AS 
DERELICTION OF DUTY AS SET FORTH IN PERTINENT 
ADMINISTRATIVE AND CIVIL SERVICE LAWS, AND SHALL BE 
ADMINISTRATIVELY DEALT WITH IN ACCORDANCE WITH 
APPROPRIATE EXISTING ADMINISTRATIVE PROCEDURES AND 
PENALTIES.


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Any public official or employee or private individual who wilfully or
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knowingly misappropriates the funds allocated herein or uses the same
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for personal gain in violation of Section [5] 6 of this Act shall be punished
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with perpetual disqualification from public office and imprisonment not
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less than six (6) years but not more than fifteen (15) years.
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Sec. 7. Section 9 of the same Act is hereby amended and accordingly
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renumbered to read as follows:
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"SEC. [9] 12. Release of Capital Outlays. - The appropriation herein
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provided for the construction, rehabilitation, replacement, completion
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and repair of School buildings shall be [directly released to and
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administered by the Department of Public Works and Highways based
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on the work program submitted by the [DECS] DEPED: Provided, that
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fifty percent (50%) of the total appropriation for capital outlay shall be
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released [automatically-on the first quarter of the calendar year,
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including its corresponding notice of cash—allocation.] IN THE
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FOLLOWING MANNER:
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1. ON THE FIRST YEAR OF EFFECTIVITY OF THIS ACT:
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A. FIFTY PERCENT (50%) OF THE SCHOOL BUILDING FUND
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SHALL BE DIRECTLY RELEASED TO AND ADMINISTERED
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BY THE DEPED OR THE LOCAL GOVERNMENT UNIT (LGU)
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AS MAY BE AUTHORIZED BY THE DEPED, UNDER THE
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LATTER'S SCHOOL BUILDING PROGRAM.
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B. FIFTY PERCENT (50%) OF THE SCHOOL BUILDING FUND
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SHALL BE DIRECTLY RELEASED TO AND ADMINISTERED
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BY THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAY
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(DPWH) BASED ON THE WORK PROGRAM SUBMITTED BY
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THE DEPED.
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2. ON THE SECOND YEAR OF THE EFFECTIVITY OF THIS ACT:
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A. SEVENTY PERCENT (70%) OF THE SCHOOL BUILDING
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FUND SHALL BE DIRECTLY RELEASED 
TO AND


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ADMINISTERED BY THE DEPED OR THE LGU AS MAY BE 
AUTHORIZED BY THE DEPED, UNDER THE LATTER'S 
SCHOOL BUILDING PROGRAM;
B. THIRTY PERCENT (30%) OF THE SCHOOL BUILDING 
FUND SHALL BE DIRECTLY RELEASED TO AND 
ADMINISTERED BY THE DPWH BASED ON THE WORK 
PROGRAM SUBMITTED BY THE DEPED.
3. ON THE THIRD YEAR AND EVERY YEAR THEREAFTER, THE 
SCHOOL BUILDING FUND SHALL BE DIRECTLY RELEASED 
TO AND ADMINISTERED BY THE DEPED OR THE LGU AS MAY 
BE AUTHORIZED BY THE DEPED, UNDER THE LATTER'S 
SCHOOL BUILDING PROGRAM:
PROVIDED, THAT THE DBM AND THE DEPED SHALL FORM 
WITHIN THE LAST QUARTER OF EVERY YEAR A COMMITTEE, 
TASKED TO DRAW A SCHOOL BUILDING EXPENDITURE 
PROGRAM, WHICH SHALL BE IMPLEMENTED IN THE 
IMMEDIATELY SUCCEEDING YEAR, WHICH AMONG 
OTHERS, SHALL INCLUDE A LIST OF SCHOOL 
BUILDING/CLASSROOM TO BE FUNDED BY THE SAID 
SUCCEEDING YEARS BUDGET. THE DRAWING OF THE 
PROGRAM TOGETHER WITH THE LIST SHALL BE DEEMED 
COMPLETE AND FINAL ON 31 DECEMBER EVERY YEAR, 
EVIDENCED BY SIGNATURES OF BOTH THE DBM AND DEPED 
SECRETARIES;
PROVIDED FURTHER, THAT THE DBM SHALL ISSUE THE 
SPECIAL ALLOTMENT RELEASE ORDER (SARO) (OR ITS 
EQUIVALENT) FOR PROJECTS IN THE LIST, TOGETHER WITH 
THE RELEASE OF CASH AMOUNT EQUIVALENT TO AT LEAST 
FIFTEEN PERCENT (15%) OF EACH TOTAL PROJECT COST, 
ON OR BEFORE JANUARY 31;


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PROVIDED FURTHERMORE, THAT THE BIDDING AND THE 
AWARDING FOR SAID PROJECTS SHALL HAVE BEEN 
COMPLETED WITHIN SIXTY (60) DAYS AFTER THE 
ISSUANCE OF THE SARO:
PROVIDED FINALLY, THAT THE NOTICE OF CASH 
ALLOCATION (NCA) (OR ITS EQUIVALENT), WHICH SHALL 
CONTAIN THE BALANCE OF THE TOTAL PROJECT COST, 
SHALL BE RELEASED AND COMPLETED WITHIN THIRTY (30)
DAYS AFTER THE AWARDING OF THE PROJECT TO THE 
IMPLEMENTOR.
FAILURE TO COMPLY WITH ANY OF THE PROVISIONS OF 
THIS SECTION SHALL RENDER THE SECRETARIES OR THE 
CONCERNED STAFF LIABLE UNDER THE PENAL PROVISIONS 
OF THIS ACT.
Sec. 8. Another new Section is hereby added to RA 7880, to read as follows:
"SEC. 13. MISCELLANEOUS PROVISIONS. - ALL REFERENCES 
TO THE "DEPARTMENT OF EDUCATION, CULTURE AND 
SPORTS" IN REPUBLIC ACT 7880 ARE ACCORDINGLY 
AMENDED TO READ "DEPARTMENT OF EDUCATION (DEPED)",
THE OTHER SECTIONS IN RA 7880 AFFECTED BY THE 
PRECEDING SECTIONS ARE HEREBY RENUMBERED 
ACCORDINGLY."
Sec. 9. Separability Clause. -The provisions of this Act are hereby declared to 
be separable and, in the event any provision is declared invalid or unconstitutional, 
the other provisions which are not affected thereby shall remain in full force and 
effect.


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Sec. 10. Repealing Clause. - All laws, presidential decrees, orders, rules and 
regulations and all other issuances or parts thereof, which are inconsistent with this 
Act are deemed repealed or modified accordingly.
Sec. 11. Effectivity. -This Act shall take effect fifteen (15) days following its 
complete publication in the Official Gazette or at least two (2) newspapers of general 
circulation in the Philippines.
Approved,