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

FIFTEENTH CONGRESS
First Regular Session

519
House Bill No. __*

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE

In the status quo, the education sector of the Philippines is being allocated
with the highest budget which is divided into the different programs and projects
under the management of the Department of Education. The Department has
attempted to implement educational reforms, programmes and projects to
address the key issues of access and quality of basic education, relevance and
efficiency of the country’s education system. But in spite of these efforts, many
problems are still besetting the education in the Philippines and it is, basically,
because of poverty that hinders the access of many Filipinos to education.

Studies show that every year, there is an increase in the number of
students entering public schools due to their incapacity to pay high tuition fees in
private schools. Primarily, this is the reason why public schools are established,
to help the poor Filipinos who desire to attain such level of literacy. However,
because of the increasing growth of their population, there comes a big dilemma
in terms of accommodating these students. It results to the problem that these
public schools could no longer accommodate the great bulk of students.

It is unfortunate to say that public schools could not any longer accept
more students because of the lack of resources and facilities such as
classrooms, desks, textbooks and even teachers. In short, there has been too
little resources for too many students who are in need of necessary attention.

From the given propositions above, 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.
Hence, poor students are no longer limited to public schools, rather, they are
encouraged and are given the chance to study in such private schools by
providing them with financial assistance through tuition fee supplements and
‘education service contracting scheme.

From the GASTPE law, the system of voucher system in tuition fee
payment has already been introduced. However, there is still a need to further
improve the system and increase the amount of assistance to students-grantees
by amending some parts of the sections of the Expanded GASTPE law so that it
can become more responsive to the needs of the students and schools.

For the past years of implementation, it has been experienced 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. More attention is
needed to cater the growing needs of the students and schools both in


secondary and tertiary levels. Thus, the increase of the amount of financial
assistance is highly recommended.

With the passage of this amendatory Bill, the improvement of the voucher
support system, which is primarily dedicated to cater the needs of the secondary
and tertiary students whose incomes are below the poverty line and cannot be
accommodated by public educational institutions due to lack of facilities, can be
obtained. Through this, more Filipinos, especially the poor, will have the access
to higher levels of education not just in public schools but also, in private schools.

From the above-mentioned justifications and explanations, the approval of
this bill is earnestly needed.

MARCELINO “MARCY” R. TEODORO
Representative, 1* District
Marikina City


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

FIFTEENTH CONGRESS
First Regular Session

House Bill No,_519

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

AN ACT
AMENDING REPUBLIC 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 Teachers 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, the others, tuition fees
charged by the schools, socioeconomic needs of each region giving priority to
the 5" AND 6" CLASS MUNICIPALITIES, overall performance of the PRIVATE
schools, the academic qualifications and the financial status of the PRIVATE
schools, as well as the RATIO OF PUBLIC SCHOOLS VIS A VIS PRIVATE
SCHOOLS and size of student population IN THE PUBLIC SCHOOLS IN THE
AREA."

“In addition to the foregoing criteria, within such reasonable time as the
State Assistance Council may determine, students 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 BELOW
THE POVERTY THRESHOLD INCOME AS MAY BE DETERMINED BY THE
APPROPRIATE GOVERNMENT AGENCY.”

“THE STATE ASSISTANCE COUNCIL MAY ADJUST THE ANNUAL
FAMILY INCOME QUALIFICATION DEPENDING ON THE CHANGES IN THE
ECONOMIC CIRCUMSTANCE 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 as to read as follows:

“Forms of Assistance. Assistance to private education shall consist of
assistance to students and teachers.”

“(1) Tuition Fee Supplements for students in private high schools including
vocational and technical courses;

(2) TRANSPORTATION AND/OR BOOK ALLOWANCES for secondary
and college students;

(3) EXPANSION OF THE voucher system of the Philippines Education
Student Financial Assistance Program (PESFA);

(4) Expansion of the existing Educational Service Contracting Scheme;

(8) Scholarship grants to students graduating as valedictorian ands
salutatorians from secondary schools;

(6) Tuition fee supplements to students in private colleges and universities

(7) Education Loan Fund”

“The following are forms of assistance to teachers and faculty in private
education:

1) In-service training fund for teachers in private high schools
2) College Faculty Development Fund

SEC. 4. 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
(P6,000.00) 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 that the tuition fee ceiling to participate in
the programs under GASTPE.”

SEC. 5. Section 5 of RA 8545 is hereby emended to read as follows:

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:

a. 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 CAPITA
COST IN OUBLIC HIGH CHOOLS.

b. THE STATE ASSISTANCE COUNCIL MAY IN SUBSEQUENT.
YEARS INCREASE THE AMOUNT OF FINANCIAL
ASSISTANCE FOR STUDENTS UNDER THE TUITION FEE
SUPLLEMENT SUBJECT TO THE AVAILABILITY OF FUNDS.


2) 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 effectivity of this Act as
the total number of students who availed of tuition fee
supplements for SCHOOL YEAR 2000-2001. Provided That the
State Assistance Council may in subsequent years determine
additional slots and/or additional participating high schools as
may be deemed necessary.

SEC. 6. Section 6 is hereby amended as follows:

HIGH SCHOOL TEXTBOOK ASSISTANCE FUND FOR SCHOOLS
CHARGING NOT MORE THAN SIX THOUSAND PESOS PER
SEMETER, THE GOVERNMENT SHALL PROVIDE THE STUDENT
WITH TEXTBOOK ALLOWANCE WHICH IS EQUIVALENT TO AT
LEAST ONE THOUSAND PESOS (P1, 000) 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 CONTRACTOING 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 COTRACTING SCHEME. A) THE
DEPARTMENT OF EDUCATION SHALL CONTINUE TO ENTER INTO
CONTRACTS WITH PRIVATE SCHOOLS WHEREBY THE GOVERNMENT
SHALL PROVIDED 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.

b) The Department shall also enter into contracts with private schools
ACCREDITED BY THE DepEd particularly in communities where THE PUBLIC
SCHOOLS CANNOT ACCOMMODATE THE STUDENTS DUE TO THE
INCRESING 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 CHRAGING MOT MORE
THAN SIX THOUSAND PESOS PER SEMESTER IN TUITION AND OTHE
RFEES, the amount of assistance to be given by the govamnient 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 educational service contracting for SCOOL
YEAR 2000-2001: Provided that the State Assistance Council may in subsequent
years determine additional sots and/or additional participating private high
schools as may be deemed necessary.”

g) IN CASE WHERE THE AMOUNT OF THE TUITION FEES AND
OTHER FEES OF THE HSCHOOL 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.

SEC. 8. TRANSPORTATION ALLOWANCE. FOR THE STUDENT
BENEFICIARIES OF THE EDUCATION SERVICE CONTRACTING AND
TUITION FEES SUPPLEMENTS PROGRAM AT THE HIGH HSCHOOL 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
FINANCIAL ASSISTANCE (PESFA) PROGRAM. THE GOVERNMENT SHALL.
UNDERTAKE AN ANNUAL 10% INCREASE IN THE AMOUNT OF
ASSISTANCE PROVIDED UNDER THE PESFA PROGRAM COVERING THE
TUITION FEE, BOOK ALLOWANCE AND/OR TRASPORTATION ALLOWANCE
AND STIPEND SO AS TO HELP THE STUDENTS COPE WITH THE
INCREASING COST OF EDUCATION, SUBJECT TO THE AVAILABILITY
FUNDS. PROVIDED THAT THE TUITIOON FEE CEILING FOR SCHOOLS IS
SIX THOUSAND PESOS (P6,000) PER SEMESTER, PROVIDED FURTHER
THAT SUCH FINANCIAL ASSISTANCE SHALL BE SELECTED ON THE BASIS
OF FAMILY INCOME, GEOGRAPHIC SPREAD AND RESULTS OF
COMPETITIVE EXAMINATIONS GIVEN BY CHED FOR DEGREE COURSES
AND THE TESDA FOR NON-DEGREE VOCATIONAL/TECHNICAL 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.

THE CHED SHALL REVIEW AND EVALUATE THE PRESNT COURSES
OF STUDENTS WHICH ARE CONSIDERED PRIORITY IN THE GRANTING OF
FINANCIAL ASSISTANCE 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. SCHOLARSHIP FUND IN PRIVATE HIGH SCHOOLS,
COLLEGES AND UNIVERSITIES. THE PARTICIPATING PRIVATE SCHOOLS
IN THE GASTOE PROGRAM MAY INSTITUTIONALIZE COUNTERPART
FUNDING TO FINANCE THE EDUCATION SERVICE CANTRACTING
SCHEME, TEXTBOOK ASISTANCE PROGRAM AND THE PRIVATE
EDUCATION STUDENT FINANCIAL ASSISTANCE PROGRAM. THE PRIVATE
SCHOOLS ARE HEREBY ENJOINED TO PROVIDE A COUNTERPART OF AT
LEAST 20% OF THE GOVERNMENT FINANCIAL ASSISTANCE GIVEN TO
THE STUDENT-BENEFICIARIES.

THE PRIVATE SCHOOLS WHICH ARE NOT PARTICIPATING IN THE
PROGRAM MAY ALSO ALLOCATE A PORTION OF THEIR GROSS INCOME
TO SCHOLARSHIP AND FINANCIAL 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 PAYMENT OF SALARIS, WAGES,
ALLOWANCES AND OTHER BENEFITS OF TEACHING AND NON-TECHING
PERSONNEL EXCEPT 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 EFFCTIVITY OF THIS
ACT. PROVIDED THAT AT LEAST 20% SHALL GO TO THE IMPROVEMENT
OR MODERNIZATION OF BUILDINGS, EQUIPMENT, LIBRARIES,
LABORATORIES, GYMNASIS 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
INCREASE, AND THE DETAILED DISPOSITIONS AND USER THEROF,
WHICH RECORD SHALL BE MADE AVAILABLE FOR PERIODIC INSPECTION
AS MAY BE DETERMINED BY THE STATE ASSISTANCE COUNCIL.

SEC. 12. APPROPRIATIONS. THE DEPARTMENT OF EDUCATION
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 (19%) OF THE NET INCOME OF THE
DEVELOPMENT ACADEMY OF THE PHILIPPINES;

4. PORTIONS OF THE OVERSEAS WELFARE FUND TO BENEFIT
THE DEPENDENTS OR CHILDREN OF OVERSEAS WORKERS;

5. ANY OTHER LUMP SUM APPROPRIATIONS OR COLECTIONS
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 ITS CONTINUED
IMPLEMENTATION SHALL BE INCLUDED AS MAY BE NECESSARY FOR ITS.
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 (DepEd) 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 DepEd 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, Commission on Higher Education and Technical Education and Skills
Development Authority shall formulate rules and regulations necessary for the
smooth implementation of this Act within a period of sixty (60) days from the day
of this 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. Effectivity Clause. This Act shall take effect immediately upon its
publication in at least two newspapers of general circulation.

Approved,