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

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__903

EXPLANATORY NOTE

‘The Constitution, Article II, Section 17 states:

and_ technolog’
nationalism, accelerate so
and development.

Nentecrorse thee tein at
nnd promote total human liberation

Further, Article 14, Section 1 mandates:

Se
to quality edu
such education

1. The State shall protect and promote the right of all citizens
ion at all levels and shall take appropriate steps to make
‘ible to all.”

Moreover, the same Article, Section 2, paragraphs (1) and (2) provides:
“Sec. 2. The State shall:
(1) Establish, maintain, and support a complete, adequate, and

integrated system of education relevant to the needs of the
people and society;

(2) Establish and maintain a system of free public education in
the elementary and high school levels. x x

Republic Act No. 8545 (amending R.A. No. 6728). otherwise known as the “Expanded
Government Assistance to Students and Teachers in Private Education, or GASTPE stipulates
that it is the declared policy of the State, in conformity with the mandate of the Constitution, to
promote and make quality education available to all Filipino citizens. Through this law, the State
recognizes the complementary roles of public and private schools in the education system,
especially the latter's invaluable contribution to education. Since the pilot test of the program in
1982-1984, the Educational Service Contracting (ESC) has become a symbol of private-public
school partnership in making quality secondary education accessible to all Filipino citizens.

At present, grantees in participating private schools in National Capital Region enjoy a
subsidy of Ten Thousand Pesos (P10,000) while those in the rest of the country receive Six
‘Thousand (P6,500) GASTPE funds is jointly managed by the Department of Education (DepEd)
and the Fund for Assistance to Private Education (FAPE).


Since its implementation, we have seen 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. Hence, there is a need to increase the amount of the financial assistance because of
rising tuition fees and growing needs of the students both in the secondary and tertiary levels.

The passage of this amendatory bill will improve the voucher support system provided to
Secondary and Tertiary students whose incomes are below the poverty line and cannot be
accommodated by public educational institutions due to lack of either classrooms or teachers.

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

VANI MERCADO-REVILLA,

2" District, Cavite

REP



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session
553

HOUSE BILL NO. _

Introduced by HONORABLE LANI MERCADO-REVILLA

ING REPUBLIC ACT 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 THERFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

Section 1. Republic Act No. 8545, otherwise known as the “Expanded Government
Assistance to Students and Teachers in Private Education Act,” is hereby amended to read as

follows:

Section 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 others, tuition fees charged by the schools,

socio-economic needs of each region giving priority to the S™ AND 6" C

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 forgoing criteria, within such reasonable time as the State
Assistance Council may determine, student 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 MAYBE DETERMINED BY THE APPROPRIATE
GOVERNMENT AGENCY.”

THE STATE ASSISTANCE COUNCIL MAY ADJUST THE ANNUAL
FAMILY INCOME QUALIFICATION DEPENDING ON THE CHANGES IN THE


ECONOMIC CIRCUMSTANCES AND CONDITIONS OF THE COUNTRY TO
ACCOMMODATE MORE BENEFICIARIES.

“The programs of a

sistance under this Act shall be extended only to students who are

citizens of the Philippines.

Section 3. Section 4 is hereby amended to read as follows:
“Forms of Assistance. Assistance to private education shall consists 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

ance Program (PESFA)

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

as

(5) Scholarship grants to students graduating as valedictorians and 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”

Section 4. FOR PURPOSED 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) PER SEMESTER. THE TUITION
FEE CEILING MAY SERVE AS A BASIS OF SELECTING/ACCREDITING SCHOOLS
THAT WOULD LIKE TO PARTICIAPTE 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 than the tuition fee ceiling to participate in the programs under GASTPE.”

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

v


Tuition Fee Supplements in Private High Schools.
(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 PER CAPITA COST IN PUBLIC HIGH SCHOOLS.

b. THE STATE ASSISTANCE COUNCIL MAY IN SUBSEQUENT YEARS
INCREASE THE AMOUNT OF FINANCIAL ASSISTANCE FOR
STUDENTS UNDER THE TUITION FEE SUPPLEMENT 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.

Section 6. Section 6 is hereby amended as follows:

HIGH SCHOOL TEXTBOOK ASSISTANCE FUND FOR SCHOOLS
CHARGING NOT MORE THAN SIX THOUSAND PESOS PER SEMES’ 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 CONTRACTING SCHEME FOR THE
HIGH SCHOOL STUDENTS AND PRIVATE EDUCATION STUDENT FINANCIAL
ASSISTANCE FOR COLLEGE STUDENTS.

Section 7. Section 7 is hereby amended as follows:
EDUCATIONAL SERVICE CONTRACTING SCHEME.
(a) THE DEPARTMENT OF EDUCATION, CULTURE AND SPORTS SHALL.
CONTINUE TO ENTER INTO CONTRACTS WITH PRIVATE SCHOOLS


WHEREBY THE GOVERNMENT SHALL PROVIDE 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 DECS particularly in communities where THE PUBLIC
SCHOOLS CANNOT ACCOMODATE THE STUDENTS DUE TO THE
INCREASING STUDENT POPULATION, in which case the Department shall
PROVIDE FINANCIAL ASSISTANCE WHICH MAY COVER THE TUITION

OF STUDENTS WHO SHALL ENROLL-IN SAID

AND OTHER FE

(©) FOR STUDENTS ENROLLED IN SCHOOLS CHARGING NOT MORE THAN
SIX THOUSAND PESOS PER SEMESTER IN TUITION AND OTHER FEES,
the amount of assistance to be given by the government shall be EQUAL to the
per student cost in public high schools.

(4) 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:

( The amount of assistance to private high schools participating in the program
shall be guaranteed for a number of slots as the effectivity of this Act as the
number of students availing of educational service contracting for SCHOOL
YEAR 2000-2001: Provided that the State Assistance Council may in subsequent
years determine additional slots and/or additional participating private high
schools as may be deemed necessary.”

(g) IN CASES WHERE THE AMOUNT OF THE TUITION FEES AND OTHER
FEES OF THE SCHOOL EXCEEDS THE AMOUNT OF SUBSIDY
PRESCRIBED BY THE ENT ASSISTANCE COUNCIL, THE PRIVATE
SCHOOL MAY SHOULDER ESPONDING BALANCE AS
COUNTERPART FUNDING.

(h) THE STATE ASSISTANCE COUNCIL MAY IN SUBSEQUENT YEARS

T OF FINANCIAL ASSISTANCE FOR STUDENTS

UNDER THE ESC PROGRAM SUBJECT TO THE AVAILABILITY OF

FUNDS.

Section 8. TRANSPORTATION ALLOWANCE FOR THE STUDENT
BENEFICIARIES OF THE EDUCATION SERVICE CONTRACTING AND TUITION FEES


SUPPLEMENTS PROGRAM AT THE HIGH SCHOOL LEVEL AND PRIVATE EDUCATION
STUDENT FINANCIAL ASSISTANCE AT COLLEGE LEVEL, WHO LIVE AT LEAST
WITHIN 3 KILOMETER RADIUS FROM THE SCHOOL WHERE THEY ARE ENROLLES
SHALL BE ENTITLED WITH A CORRESPONDING TRANSPORTATION ALLOWANCE
WHICH SHALL BE DETERMINED BY THE STATE ASSISTANCE COUNCIL.

Section 9, ASSISTANCE TO COLLEGE FRESHMEN ~ Subparagraph (a) of Section 8
of RA 8545 is herby amended as follows

THE VOUCHER SYSTEM OF PRIVATE EDUCATION SYSTEM 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
TRANSPORTATION ALLOWANCE AND STIPEND SO AS TO HELP THE STUDENTS
COPE WITH THE INCREASING COST OF EDUCATION, SUBJECT TO THE
AVAILABILITY OF FUNDS PROVIDED THAT THE TUITION FEE CEILING FOR
SCHOOLS IS SIX THOUSAND PESOS (P6,000) PER SEMESTER. PROVIDED FURTHER
THAT SUCH FINANCIAL ASSISTANCE SHALL BE GRANTED TO DESERVING AND
UNDERPRIVILEGED STUDENTS WHO SHALL BE SELECTED ON THE BASIS OF
FAMILY INCOME, GEOGRAPHIC SPREAD AND RESULTS OF COMPETITIVE
EXAMINATIONS GIVEN BY CHED FOR DEGREE 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 AT THE NEAREST CHED OR TESDA
REGIONAL OFFICE,

THE CHED SHALL REVIEW AND EVALUATE THE PRESENT COURSES OF THE
STUDENTS WHICH ARE CONSIDRED 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 GROS: IME OF HIS/HER PARENTS, IS BELOW THE
POVERTY THRESHOLD INCOME.

INC

Section 10. SCHOLARSHIP FUND IN PRIVATE HIGH SCHOOLS, COLLEGES AND
UNIVERSITIES. THE PARTICIPATING PRIVATES SCHOOLS IN THE GASTPE PROGRAM
MAY INSTITUTIONALIZE COUNTERPART FUNDING TO FINANCE THE EDUCATION
SERVICE CONTRACTING SCHEME, TEXTBOOK ASSISTANCE 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 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.

Section 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 THE
PAYMENT OF SALARIES, WAGES, ALLOWANCES AND OTHER 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 EFFECTIVITY OF THIS ACT.
PROVIDED THAT AT LEAST 20% SHALL GO TO THE IMPROVEMENT OR
MODERNIZATION OF BUILDINGS, EQUIPMENT, LIBRARIES, LABORATORIES,
GYMNASIA 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 DETAIL DISPOSITION
AND USE THEREOF, WHICH RECORD SHALL BE MADE AVAILABLE FOR PERIODIC
INSPECTION AS MAY BE DETERMINED BY THE STATE ASSISTANCE COUNCIL.

Section 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 (10%) OF THE NET INCOME OF THE DEVELOPMENT
ACADEMY OF THE PHILIPPINES

(4) PORTIONS OF THE OVERSEAS WELFARE FUND TO BENEFIT THE
DEPENDENTS OR CHILDEN OF OVERSEAS WORKERS;

(5) ANY OTHER LUMP SUM APPROPRIATIONS OR COLLECTIONS 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
(P1,000,000,000.00) FOR FISCAL YEAR 2014. THEREAFTER, SUCH AMOUNT AS AY BE
NECESSARY FOR ITS CONTINUED IMPLEMENTATION SHALL BE INCLUDED IN THE.
ANNUAL GENERAL APPROPRIATION ACT,

Section 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 (Dep

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.

Section 14. The Senate Committee on Education and House Committee on Basi

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 in the implementation of this Act,

Section 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 its effectivity.

Section 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.

Section 17. Separability Clause. If any provision of this Act is declared
unconstitutional, the same shall not effect the validity and effectivity of other provisions not

affected thereby.

Section 18. Effectivity Clause. This Act shall take effect immediately upon its

publication in at least two newspapers of general circulation.

Approved,