SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
FIRST REGULAR SESSION
SENATE
S. B. NO. 
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INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
EXPANDING THE PURPOSES AND APPLICATION OF THE 
SPECIAL EDUCATION FUND (SET) AMENDING FOR THE 
PURPOSE SECTION 272 OF REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT 
CODE OF 1991, AND FOR OTHER PURPOSES.
EXPLANATORY NOTE
The Special Education Fund arises from the additional one (1%) tax on 
real property and is allotted by the Local Government Code to the local school 
boards. This Fund is allocated by the Code for the operation and maintenance 
of public schools, construction and repair of school buildings, facilities and 
equipment, educational research, purchase of books and periodicals, and 
sports development in amount determined by the local school boards 
themselves.
At the outset, basic public education is the responsibility of the central 
govermnent, carried out by the Department of Education. Nonetheless, the 
local government units may provide supplementary funding to public basic 
education since they have access to a sustainable source of financial resources 
to augment school resources and to upgrade educational quality.


However, these purposes and applications do not respond to the 
challenges of the changing times. Thus, there is need to amend the Local 
Government Code. To ensure the quality of our education system, the 
purposes and applications of Special Education Fund must be expanded.
Earnest passage of this bill is highly sought.
JOSEPH VICTOR G. EJERCITO


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SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
FIRST REGULAR SESSION
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■17 
FEB 27
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SENATE 
s. B.NO. 1 3 5 7
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
EXPANDING THE PURPOSES AND APPLICATION OF THE 
SPECIAL EDUCATION FUND (SEF) AMENDING FOR THE 
PURPOSE SECTION 272 OF REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT 
CODE OF 1991, AND FOR OTHER PURPOSES.
Be it enacted by the Senate ami the House of Representatives of the Philippines in the 
Congress assembled:
SECTION 1. Section 272 of Republic Act No. 7160 is hereby amended to read 
as follows:
"The proceeds from the additional one percent (1%) tax on real property 
accruing to the Special Education Fund shall be automatically released to the 
local school boards; Provided, that in case of provinces, the proceeds shall be 
divided equally between the provincial and municipal school boards; 
Provided, however that the proceeds shall be allocated for the operation and 
maintenance of public schools, INCLUDING THE PAYMENT OF ELECTRIC 
AND WATER BILLS; construction and repair of school building, facilities and 
equipment, PAYMENT OF SALARIES, ALLOWANCES, AND OTHER 
BENEFITS 
OF 
TEACHING 
AND 
NON-TEACHING 
PERSONNEL, 
ESTABLISHMENT AND MAINTENANCE OF EXTENSION CLASSES, 
INCLUDING THE CREATION OF TEACHER ITEMS FOR SAID CLASSES, 
educational research, purchase of [hooks] PRESCRIBED TEXTBOOKS, 
periodicals, TEACHING AIDS, OTHER INSTRUCTIONAL MATERIALS, and 
sports development as determined and approved by the local school board."


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SECl’lON 2. Repealing Clause. All laws, order, decrees, rules and regulations 
or parts thereof inconsistent with this Act are hereby repealed or amended 
accordingly.
SECTION 3. 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.
Adopted,