EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S E N A T E
909
©
I 
S>ciiate
(Ctf:cr of U>f J^rcrrtarjr
*19 AUG 15 P5 :33
S. No.
KfCkIVfDE/
In tro d u c e d  by SENATOR RAMON BONG REVILLA, JR.
AN ACT
AM ENDING  REPUBLIC ACT NO. 7880 OTHERW ISE KNOWN AS "A N  ACT 
PR O VID IN G  
FOR THE 
FAIR  AND 
EQUITABLE ALLOCATION 
OF THE 
DEPARTMENT OF EDUCATION BUDGET FOR CAPITAL OUTLAY"
EXPLANATORY NOTE
The populous of our nation has been growing rapidly over the past few years; 
consequentially that growth also meant the increase of our student population. Last 
year, according to the Department of Education's (DepEd) data, over 27.7 million 
students enrolled in public and private basic education institutions across the country, 
the highest in history, according to DepEd. Their data showed that student enrolment 
in public schools went up to 23.5 million from 22.9 million; in private schools, 
enrolment increased from 4 million to 4.2 million; and about 150,000 are expected to 
enrol in state universities and colleges. Based on enrolment data, almost 14 million 
pupils enrolled in elementary programs, while around 8 million students enrolled in 
Junior Highschool. An estimated 3 million pupils enrolled in kindergarten and over 2.7 
million students in Senior Highschool.
With the data stated above, the disparity between the number of students and 
the number of school facilities should be 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, build-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 for 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 o f their 
education.
For the reasons stated above, the passage of this bill into law is earnestly
sought.
RAM ^ B^I^REVILLA, JR.


%
EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
909
S. No.
(f Qitf of ll)f <»rcrttarf
•19 
AUG 15 P5 :33
RECEIVED B. 41
In tro d u c e d  by SENATOR RAMON BONG REVILLA, JR.
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
AN ACT
AM ENDING  REPUBLIC ACT NO. 7 8 80  OTHERW ISE KNOW N AS "A N  ACT 
PR O VID IN G  
FOR THE 
FAIR AND 
EQUITABLE ALLOCATION 
OF THE 
DEPARTMENT OF EDUCATION BUDGET FOR CAPITAL OUTLAY"
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress Assembled:
Section 1. Republic Act No. 7880 is hereby amended, and subsequent sections 
thereby renumbered, by inserting a new Section 3, to read as follows:
"SEC. 3. COVERAGE. -  THE PRO VISIO NS OF T H IS  ACT COVER 
ALL FUNDS AND BUDGET APPROPRIATED AS CAPITAL OUTLAY 
FOR THE DEPARTMENT OF EDUCATION (DEPED) IN C LU D IN G ,
BUT NOT LIM IT E D  TO, THE FUNDS APPROPRIATED FOR THE 
SCHOOL 
B U ILD IN G  
PROGRAM 
AND 
LOCALLY-FUNDED 
PROJECTS OF THE DEPARTMENT OF EDUCATIO N."
Sec. 2. Section 3 of the same Act is hereby amended to read as follows:
"Sec. [3] 4. Definition o f 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 
[DECS] DEPED for elementary and secondary education for (i) the


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
acquisition 
and 
improvement of sites; 
(ii) the construction, 
replacement, rehabilitation and repair of buildings, classrooms, 
libraries, workshops, toilets AND SAN ITATIO N  FA C ILITIE S  and 
other structures; and (iii) [furniture, fixtures, and equipment such 
as, but not limited to, desks, chairs, laboratory and workshop 
implements, computers, books,] OTHER PROPERTY, PLANT AND 
EQUIPMENT 
IN  
ACCORDANCE 
W IT H  
THE 
CURRENT 
GOVERNMENT ACCOUNTING STANDARDS PRESRIBED BY 
T H E  C O M M ISSIO N 
ON 
A U D IT, 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 B U ILD IN G  
INTENDED FOR INSTRUCTIO NAL PURPOSES, IN C LU D IN G  
CHAIRS, DESK AND OTHER S IM ILA R  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 
[45:1] 40:1; classrooms, UNDER T H IS  D E F IN IT IO N , 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 o f 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 effectivity o f this Act:


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
(1) Thirty percent (30% ) 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;
(2) Sixty percent (60% ) of the total capital outlay to be allocated only 
among those legislative districts with classroom shortages as defined 
in Section 3 (b), pro-rata to the total classroom 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 
DECS.
(b) On the second year and every year thereafter:
(1) Fifty percent (50% ) 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;
(2) Forty percent (40% ) 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 DECS;
(3) Ten percent (10% ) to be allocated in accordance with the 
implementation of the policy of this Act as may be determined by the 
DECS.
(a) TEN PERCENT (1 0 % ) OF THE TOTAL CAPITAL OUTLAY TO BE 
ALLOCATED PRO-RATA ACCORDING TO EACH LEGISLATIVE 
D ISTR IC T'S STUDENT POPULATION IN  RELATION TO THE 
TOTAL STUDENT POPULATION OF THE COUNTRY;
(b) EIGHTY PERCENT (8 0 % ) OF THE TOTAL CAPITAL OUTLAY 
TO BE ALLOCATED ONLY AMONG THOSE LEGISLATIVE 
DISTRICTS W IT H  CLASSROOM SHORTAGES, PRO-RATA TO 
THE TOTAL CLASSROOM SHORTAGE OF THE COUNTRY,


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
PURSUANT TO SECTION 4(C ) AS DETERMINED BY THE 
DEPED; AND
(c) TEN PERCENT (1 0 % ) TO BE ALLOW ED IN  ACCORDANCE 
W IT H  THE IM PLEM ENTATIO N OF THE POLICY OF T H IS  ACT 
AS MAY BE DETRERMINED BY THE DEED."
Sec. 4. Section 5 of the same Act is hereby amended to read as follows:
"Sec. [5] 6. Use o f Allocation. -T h e  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 /CLASSRO O M  
APPROPRIATE NUMBER OF TOILETS A N D /O R  SAN ITATIO N  
FA C ILITIE S  SHALL ALSO BE CONSTUCTED IN  ACCORDANCE 
W IT H  THE SCHOOL SAN ITATIO N  AND HEALTH SERVICES 
CHAPTER OF THE CODE ON SAN ITATIO N  OF THE P H ILIP P IN E S  
(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 A N D /O R  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)]


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
PARAGRAPH (a) of the same section excluding capital outlays of 
division offices, regional and central offices.
Sec. 5. Before Section 6 of Republic Act 7880, insert two (2) new sections to 
read as follows:
"SEC. 
7. 
INCREASE 
IN  
THE 
ANNUAL 
BUDGET 
ALLOCATION. -  THE BUDGET ALLOCATION PROVIDED FOR THE 
CAPITAL OUTLAY OF THE DEPED UNDER T H IS  ACT SHALL BE 
INCREASED ANNUALLY BY TW ENTY PERCENT (2 0 % ) TO 
COMPLY W ITH  THE TARGETED CLASSROOM-STUDENT RATIO 
AND TO DECREASE CLASSROOM SHORTAGE IN  THE COUNTRY.
SEC. 
8. 
REPORTORIAL 
REQUIREMENT. 
-  
THE 
DEPARTMENT OF BUDGET AND MANAGEMENT (D B M ), THE 
DEPARTMENT OF PUBLIC WORKS AND HIG HW AYS (D P W H ),
AND THE DEPARTMENT OF EDUCATION (DEPED) ARE HEREBY 
REQUIRED TO S U B M IT TO THE RESPECTIVE COMMITTEES ON 
EDUCATION OF BOTH HOUSES OF CONGRESS AN ANNUAL 
REPORT ON THE RELEASE AND U T ILIZ A T IO N  OF THE CAPITAL 
OUTLAY 
UNDER 
T H IS  
ACT: 
PROVIDED, 
THAT 
SUCH
SUBM ISSIO N SHALL BE SEPARATE AND D IS TIN C T FROM THE 
REPORTS 
THEY 
SU BM IT 
TO 
CONGRESS 
RELATED 
TO 
DELIBERATIO NS ON THE ANNUAL GENERAL APPRO PRIATIO NS 
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 V IO LA TIO N  OF THE 
PRO VISIO NS 
OF 
TH IS  
ACT 
SHALL 
CONSIDERED 
AS


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
DERELICTION 
OF 
DUTY AS 
SET 
FORTH 
IN  
PERTINENT 
A D M IN IS TR A TIV E  AND C IV IL  SERVICE LAWS, AND SHALL BE 
A D M IN IS TR A TIV E LY  DEALTH W IT H  IN  ACCORANCE W ITH  
APPROPRAITE EXISTING  A D M IN IS TR A TIV E  PROCEDURES AND 
PENALITES.
Any public official or employee or private individual who wilfully or 
knowingly misappropriates the funds allocated herein or uses the same 
for personal gain in violation of Section [5] 6 of this Act shall be punished 
with perpetual disqualification from public office and imprisonment not 
less than six (6) years but not more than fifteen (15) years.
Sec. 7. Section 9 of the same Act is hereby amended and accordingly 
renumbered to read as follows:
"SEC. [9] 12. Release o f Capital Outlays. -  The appropriation herein 
provided for the construction, rehabilitation, replacement, completion 
and repair of School buildings shall be [directly released to and 
administered by the Department of Public Works and Highways based 
on the work program submitted by the [DECS] DEPED: Provided, that 
fifty percent (50% ) of the total appropriation for capital outlay shall be 
released automatically on the first quarter of the calendar year, including 
its corresponding notice of cash allocation.] RELEASED IN  THE 
FOLLOW ING MANNER:
1. ON THE FIRST YEAR OF EFFECTIVITY OF T H IS  ACT:
A. FIFTY PERCENT (5 0 % ) OF THE SCHOOL B U ILD IN G  FUND 
SHALL BE DIRECTLY RELEASED TO AND ADM INISTERED 
BY THE DEPED OR THE LOCAL GOVERNMENT U N IT  AS 
MAY BE AUTHORIZED BY THE DEPED, UNDER THE 
LATTER'S SCHOOL B U ILD IN G  PROGRAM.
B. FIFTY PERCENT (5 0 % ) OF THE SCHOOL B U ID LIN G  FUND 
SHALL BE THE DEPARTMENT OF PUBLIC WORKS AND


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
H IG H W AY (D P W H ) BASED ON THE W ORK PROGRAM 
SUBM ITTED BY THE DEPED.
2. ON THE SECOND YEAR OF THE EFFECTIVITY OF T H IS  ACT:
A. SEVENTY PERCENT (7 0 % ) OF THE SCHOOL B U ILD IN G
FUND 
SHALL BE 
DIRECTLY 
RELEASED 
TO 
AND
AD M IN ISTER ED  
BY 
THE 
DEPED 
OR 
THE 
LOCAL 
GOVERNMENT U N IT  AS MAY BE AUTHORIZED BY THE 
DEPED, 
UNDER 
THE 
LATTER'S 
SCHOOL 
B U ILD IN G  
PROGRAM;
B. TH IR TY PERCENT (3 0 % ) OF THE SCHOOL B U ILD IN G
FUND 
SHALL BE 
DIRECTLY 
RELEASED 
TO 
AND
AD M IN ISTER ED  BY THE DPWH BASED ON THE W ORK 
PROGRAM SUBM ITTED BY THE DEPED.
3. ON THE TH IR D  YEAR AND EVERY YEAR THEREAFTER, THE 
SCHOOL B U ILD IN G  FUND SHALL BE DIRECTLY RELEASED 
TO AND AD M INISTERED BY THE DEPED OR THE LOCAL 
GOVERNMENT U N IT AS MAY BE AUTHORIZED BY THE 
DEPED, 
UNDER 
THE 
LATTER'S 
SCHOOL 
B U ILD IN G  
PROGRAM.
PROVIDED, THAT THE DBM AND THE DEPED SHALL FORM 
W IT H IN  THE LAST QUARTER OF EVERY YEAR A COMMITTEE, 
TASKED TO DRAW  A SCHOOL B U ILD IN G  EXPEDITURE 
PROGRAM 
W H IC H  
SHALL 
BE 
IMPLEMENTED 
IN  
THE 
IM M ED IATELY 
SUCCEEDING 
YEAR, 
W H IC H  
AMONG 
OTHERS, 
SHALL 
INCLUDE 
A 
LIS T 
OF 
SCHOOL 
BU ILD IN G /C LASSR O O M  TO 
BE 
FUNDED 
BY THE SAID  
SUCCEEDING YEARS BUDGET. THE 
DRAW ING  OF THE 
PROGRAM TOGETHER W IT H  THE LSIT SHALL BE DEEMED 
COMPLETE AND FIN AL ON 31 DECEMBER EVERY YEAR, 
EVIDENCED BY SIGNATURES OF BOTH THE DBM AND 
DEPARTMENT OF EDUCATION (DEPED) SECRETARIES;


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
PROVIDED FURTHER, THAT THE DBM SHALL ISSUE THE 
SPECIAL ALLOTMENT RELEASE ORDER (SARO) (O R ITS  
EQUIVALENT) FOR PROJECTS IN  THE LIST, TOGETHER W ITH  
THE RELEASE OF CASH AMOUNT EQUIVALENT TO AT LEAST 
FIFTEEN PERCENT (1 5 % ) OF EACH TOTAL PROJECT COST,
ON OR BEFORE JANUARY 3 1;
PROVIDED FURTHERMORE, THAT THE B ID D IN G  AND THE 
AW AR D IN G  
FOR 
S AID  
PROJECTS 
SHALL 
HAVE 
BEEN 
COMPLETED 
W IT H IN  
SIXTY 
(6 0 ) 
DAYS 
AFTER 
THE 
ISSUANCE OF THE SARO;
PROVIDED 
FINALLY, 
THAT 
THE 
NOTICE 
OF 
CASH 
ALLOCATION (N CA) (OR ITS EQUIVALENT), W H IC H  SHALL 
CONTAIN THE BALANCE OF THE TOTAL PROJECT COST, 
SHALL BE RELEASED AND COMPLETED W IT H IN  TH IR TY 
DAYS 
AFTER 
THE 
AW AR D IN G  
OF 
THE 
PROJECT 
TO 
IMPLEMENTOR.
FAILURE TO COMPLY W IT H  ANY OF THE PRO VISIO NS T H IS  
SECTION 
SHALL 
RENDER THE 
SECRETARIES 
OR THE 
CONCERNED STAFF LIABLE UNDER THE PENAL PRO VISIO NS 
OF T H IS  ACT.
Sec. 8. Another new Section is hereby added to R.A. No. 7880 to read as
follows:
"SEC. 13. MISCELLANEOUS PROVISIONS. -  ALL REFERENCES 
TO 
THE 
"DEPARTM ENT 
OF 
EDUCATION, 
CULTURE 
AND 
SPORTS" 
IN  
REPUBLIC 
ACT 
7 8 80  
ARE 
ACCORIDNGLY 
AMMENDED TO READ "DEPARTMENT OF EDUCATION (D EPED )" 
THE OTHER SECTIONS IN  
R.A. 7880 AFFECTED 
BY THE


1
2
3
4
5
6
7
8 
9
10
11
12
13
PRECEDING 
SECTIONS 
ACCORDINGLY.
ARE 
HEREBY 
RENUBMERED
Sec. 9. Repealing Cause. -  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. 10. Separability Cause. -T h e  provisions of this Act are hereby declared 
to be separable and, in the event any provision is declared unconstitutional, the other 
provisions which are not affected thereby shall remain in full force and effect.
Sec. 11. Effectivity. -T h is  Act shall take effect fifteen (15) days following its 
publication in a newspaper of general circulation in the Philippines.
Approved,