Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 909

Introduced by Representative Jaime R. Fresnedi

EXPLANATORY NOTE

This bill seeks to make the allocation of funds from the Department of Education's
(DepEd) School Building Program more equitable among legislative districts.

Despite having a constitutionally guaranteed priority in budget allocation and
consistently high utilization rates, the DepEd has yet to make significant progress in alleviating
the classroom shortage. The Congressional Policy and Budget Research Department's Agency
Budget Note for DepEd for Fiscal Year 2025 noted that only 192 of the target 6,379 classrooms
were constructed in 2023.

As the classroom shortage has already reached emergency levels, with a total shortage
estimated at 165,444 classrooms according to the DepEd’s Government Assistance and
Subsidies Office, the rate of classroom construction remains low even if the targets are
achieved. For this reason, it is essential that the budget for the construction of classrooms be
increased annually and target areas with the highest shortage. This measure seeks to accelerate
the resolution of the classroom shortage in more disadvantaged municipalities and areas, as
larger and richer local government units (LGUs) often have their own resources available to
contribute to the solution to the problem.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

JAIME NEDI
Representttive
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. _509

Introduced by Rep. Jaime R. Fresnedi

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 the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Insert a new section after Section 2 of Republic Act No. 7880, named
Section 2-A, to read as follows:

“SEC. 2-A. 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. 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 [DECS] DEPED for
elementary and secondary education for (i) the acquisition and improvement
of sites; (ii) the construction, replacement, rehabilitation and repair of
buildings, classrooms, libraries, workshops, toilets AND SANITATION
FACILITIES, and other structures; and (iii) [fumiture, fixtures, and
equipment such as, but not limited to, desks, chairs, laboratory and workshop
implements, computers, books,| OTHER PROPERTY, PLANT, AND
EQUIPMMENT 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 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 ratio of [45]40:1;
classrooms 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. 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(a), shall be allocated among the legislative districts in
the following manner:

(a) {On the first year of the effectivity, of this Act:
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 the DECS:
and ten percent (10%) to be allocated in accordance with the
implementation of the policy of this Act as may be 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.

(b) On the second year and every year thereafter:

1. Fifty percent (50%) of 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 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 the 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.]


(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) TWENTY PERCENT (20%) 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 3(B) AS DETERMINED BY THE
DEPED;

(c) FIFTY PERCENT (50%) OF THE TOTAL CAPITAL OUTLAY TO
BE ALLOCATED TO SIXTH- TO  THIRD-CLASS
MUNICIPALITIES WITH CLASSROOM SHORTAGES, PRO-
RATA TO THE TOTAL CLASSROOM SHORTAGE OF ALL THESE
MUNICIPALITIES: PROVIDED, THAT SCHOOLS IN AREAS
OTHER THAN THOSE INDICATED IN THIS PROVISION
REQUIRING IMMEDIATE REPAIR AND REHABILITATION
MAY BE INCLUDED IF THE AMOUNT WILL NOT EXCEED TWO
PERCENT (2%) OF THE TOTAL CAPITAL OUTLAY;

(d) TWENTY PERCENT (20%) OF THE TOTAL CAPITAL OUTLAY
TO BE ALLOCATED ONLY FOR THE DEPED’S LAST MILE
SCHOOLS PROGRAM FOR SCHOOLS IN GEOGRAPHICALLY
ISOLATED AND DISADVANTAGED AND CONFLICT-AFFECTED
AREAS (GIDCA).”

SEC. 4. Section 5 of the same Act is hereby amended to read as follows:

“SEC. 5. 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
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 CHAPTER VI OF
PRESIDENTIAL DECREE NO. 856, OR THE SCHOOL
SANITATION AND HEALTH SERVICES CHAPTER OF THE CODE
ON SANITATION OF THE PHILIPPINES: Provided, further, That any
amounts allocated in accordance with [subparagraph (1) of paragraphs (a)
and (b)] SUBSECTION (A) of the preceding section shall be used only for

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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] FINALLY, That the
amount so appropriated in accordance with {subparagraph (2) of paragraphs
(a) and (b)] SUBSECTION (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) should exceed the amount
required to meet classroom shortage. the excess shall be integrated with
subparagraph (1) of paragraphs (a) and (b) of the same section excluding
capital outlays of division offices, regional and central offices. |.”

SEC. 6. Insert a new section named Section 5-A, to read as follows:

“SECTION 5-A. IF THE AMOUNT SO
APPROPRIATED IN SECTION 5(D) SHOULD EXCEED THE
AMOUNT REQUIRED TO MEET THE CLASSROOM SHORTAGE
THE EXCESS SHALL BE INTEGRATED WITH THE
ALLOCATION FOR SECTION 5(C), EXCLUDING CAPITAL
OUTLAYS OF DIVISION OFFICES, REGIONAL AND CENTRAL
OFFICES. THE SAME RULE SHALL APPLY FOR SECTION S(C),
WHOSE ALLOCATION SHALL BE INTEGRATED WITH THE
ALLOCATION FOR SECTION 5(B), INCLUDING THE
PROVISION ON SCHOOLS REQUIRING IMMEDIATE REPAIR
AND REHABILITATION.”

SEC. 5. Section 6 is hereby renamed as Section 9, with subsequent sections renumbered
accordingly.

SEC. 6. Insert two new sections named Section 6, 6-A, to read as follows:

“SEC. 6. 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 NO LESS THAN
TWENTY PERCENT (20%) UNTIL THE TARGET CLASSROOM-
STUDENT RATIO HAS BEEN ACHIEVED IN THE ENTIRE
COUNTRY.

“SEC. 6-A. REPORTORIAL REQUIREMENT. - THE
DEPARTMENT OF BUDGET AND MANAGEMENT (DBM), THE
DEPARTMENT PUBLIC WORKS AND HIGHWAYS (DPWH), AND
THE DEPARTMENT OF EDUCATION (DEPED) SHALL SUBMIT

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‘TO THE RESPECTIVE COMMITTEES ON BASIC EDUCATION
OF BOTH HOUSE OF CONGRESS AN ANNUAL REPORT ON
THE RELEASE AND UTILIZATION OF THE CAPITAL OUTLAY
UNDER THIS ACT WHICH SHALL BE SEPARATE AND
DISTINCT FROM THE REPORTS THEY SUBMIT TO
CONGRESS RELATED TO THE DELIBERATIONS ON THE
ANNUAL GENERAL APPROPRIATIONS ACT.”

SEC. 7. Section 8 of the same Act is hereby amended to read as follows:

“SEC. 8. Penal Clause. - Any public official or employee or private
individual who willfully or knowingly misappropriates the funds allocated
herein or uses the same for personal gain in violation of Section 5 of this
Act shall be punished with perpetual disqualification from public office
and imprisonment for not less than six (6) years but not more than fifteen
(15) years, IN ADDITION TO ADMINISTRATIVE PENALTIES AS
PRESCRIBED BY RELEVANT ADMINISTRATIVE AND CIVIL
SERVICE LAWS.”

SEC. 8. Section 9 of the same Act is hereby amended to read as follows:

“SEC. 9. Release of 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].

SEC. 9. Implementing Rules and Regulations. — The DepEd, in consultation with
DPWH and the DBM, shall promulgate the rules and regulations for the proper implementation
of this Act within ninety (90) days from the effectivity of this Act.

SEC. 10. Appropriations. ~ The amount necessary for the initial implementation of this
Act shall be charged against the current year’s appropriations of the departments and agencies
concerned. Thereafter, such amount shall be included in the annual General Appropriations
Act.

SEC. 11. Separability Clause. - If any provision of this Act shall be deemed
unconstitutional or invalid, the other provisions not affected there shall remain in force and
effect.


SEC. 12. Repealing Clause. - All Acts, Presidential Decrees, Executive Orders and
Administrative Orders, Rules and Regulations and other such issuances or parts thereof which
are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 13. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,