TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
450
25 JULIO P6 32
f'v'
S. B. No.
Introduced by Senator Rodante D. Marcoleta
AN ACT
EXPANDING THE PURPOSE AND APPLICATION OF THE SPECIAL 
EDUCATION FUND, 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
Article XIV, Section 1 of the 1987 Constitution mandates that "[t]he State shall 
protect and promote the right of all citizens to quality education at ail levels and shall 
take appropriate steps to make such education accessible to all." Thus, there is a clear 
need to take vital steps to address the limitation set by the existing provisions of 
Republic Act No. 7160 or the Local Government Code (LGC) of 1991 on the utilization 
of the Special Education Fund (SEF).
Section 235 of LGC of 1991 states that "[a]province or city, or a municipality 
within the Metropolitan Manila Area, may levy and collect an annual tax of one percent 
(1%) on the assessed value of real property which shall be in addition to the basic 
real property tax." It also declares that the proceeds of the same shall exclusively 
accrue to the SEF. According to existing law, the said expenses will be determined 
and approved by the local school board.
In a report released by the Second Congressional Commission on Education 
(EDCOM 2), the SEF across the country remains underutilized, despite an increase in 
income1. Corollary, the Department of Education continues to be challenged with 
perennial issues on learning environments, learning outcomes, teacher welfare and
EDCOM2, "LGU Special Education Fund underutilized, inequitable - EDCOM 2", March 11, 2024, available at 
htfps;//edcom2.gov.ph/lgu-special-education-fund-underutilized/ (last accessed on duly 07, 2025).


resource gaps - areas that require substantive resources. Hence, the need for the 
expansion of the purpose and application of SEF in order to tap the capability of local 
government units (LGUs) in addressing these issues within their respective jurisdiction.
This measure ensures that SEF is maximized, in response to our LCDs' need for 
additional support to achieve the quality education for our youth.
In view of the foregoing, the passage of this bill is earnestly sought.
RODANtE D. MARCOLETA


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
25 JULIO P6 32
SENATE
S. B. No. 450
Introduced by Senator Rodante D. Marcoleta
AN ACT
EXPANDING THE PURPOSE AND APPLICATION OF THE SPECIAL 
EDUCATION FUND, 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 and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Section 272 of Republic Act No. 7160 is hereby amended to read as
2 
follows:
3 
"Sec. 272. Application of Proceeds of the Additional One Percent SEF
4 
Tax. - The proceeds from the additional one percent (1%) tax on real
5 
property accruing to the Special Education Fund (SEF) shall be automatically
6 
released to the local school boards: Provided, That, in case of provinces,
7 
the proceeds shall be divided equally between the provincial and municipal
8 
school boards: Provided, however, That the proceeds shall be allocated,
9 
[for the operation and maintenance of-public sehe>ols> ■ const-r-uetion and
10 
repair-of school buildings; facilities and equipment, educational research,
11 
purchase of boo to and pcriodicols, and sports development] AS
12 
DETERMINED AND APPROVED BY THE LOCAL SCHOOL BOARD,
13 
FOR THE FOLLOWING:
14 
1. 
OPERATION AND MAINTENANCE OF PUBLIC SCHOOLS;
15 
2. 
ACQUISITION OF SCHOOL SITES OR LANDS;
16 
3. 
CONSTRUCTION AND REPAIR OF SCHOOL BUILDINGS,
17 
LEARNING CENTERS, 
LIBRARIES, AND SCHOOL
18 
DORMITORIES;


1
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
4. 
FACILITIES AND EQUIPMENT INCLUDING BUT NOT 
LIMITED TO INFORMATION TECHNOLOGY EQUIPMENT 
AND COROLLARY SUPPORT SERVICES, SCHOOL 
FURNITURE AND FIXTURES, MEDICAL AND DENTAL 
SUPPLIES, AND INSTALLATION OF RADIO FREQUENCY 
IDENTIFICATION (RFID) SYSTEM AND CLOSED-CIRCUIT 
TELEVISION (CCTV);
5. 
PURCHASE AND MAINTENANCE OF SERVICE VEHICLES;
6. 
PAYMENT OF VOLUNTARY CONTRIBUTIONS AUTHORIZED 
UNDER EXISTING LAWS;
7. 
PAYMENT OF COMPENSATION AND AUTHORIZED
ALLOWANCES, 
COMPETENCY 
TRAININGS,
BENCHMARKING, AND OTHER BENEFITS OF LOCALLY- 
HIRED TEACHING AND NON-TEACHING PERSONNEL: 
PROVIDED, THAT THE RATES OF COMPENSATION AND 
AUTHORIZED ALLOWANCES OF LOCALLY-HIRED 
TEACHING AND NON-TEACHING PERSONNEL SHALL BE 
DETERMINED BY THE LSB, BASED ON FUNDS AVAILABLE, 
BUT AT RATES NOT TO EXCEED THE SALARY SCHEDULE 
BEING IMPLEMENTED BY THE LGU CONCERNED;
8. 
ANY ADDITIONAL AUTHORIZED ALLOWANCES GRANTED 
BY LGUS TO NATIONALLY-HIRED TEACHING AND NON­
TEACHING PERSONNEL CHARGEABLE AGAINST THE SEF 
AS OF 31 DECEMBER 1997: PROVIDED, THAT SUCH 
ADDITIONAL AUTHORIZED ALLOWANCES GRANTED 
THEREAFTER SHALL BE CHARGED TO THE GENERAL FUND: 
PROVIDED, FURTHER, THAT IN CASE OF FOURTH TO SIXTH 
CLASS MUNICIPALITIES, SUCH ADDITIONAL 
AUTHORIZED ALLOWANCES MAY STILL BE CHARGED TO 
SEF SO LONG AS THE SAME DOES NOT EXCEED 10% 
THEREOF, SUBJECT TO EXISTING BUDGETING RULES AND 
REGULATIONS;


1
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
9. 
OPERATION OF (I) NON-FORMAL EDUCATION PROGRAMS, 
(II) EARLY CHILDHOOD EDUCATION, (III) SPECIAL 
EDUCATION, (IV) SENIOR HIGH SCHOOL, (V) OPEN HIGH 
SCHOOL PROGRAM, (VI) MADRASAH CLASSES, AND (VII) 
REMEDIAL CLASSES, INCLUDING THE PAYMENT OF 
SALARIES, AUTHORIZED ALLOWANCES, AND OTHER 
BENEFITS OF LOCALLY-HIRED TEACHING AND NON­
TEACHING PERSONNEL OF THE PROGRAM, AND THE 
CONDUCT OF TEACHERS' COMPETENCY TRAININGS;
10. OPERATION OF ALTERNATIVE LEARNING SYSTEM (ALS) 
INCLUDING PAYMENT OF SALARIES, AUTHORIZED 
ALLOWANCES AND OTHER BENEFITS OF THE LOCALLY- 
HIRED ALS LEARNING FACILITATORS;
11. EDUCATIONAL RESEARCH AND STUDY TRIPS, INCLUDING 
PARTICIPATION IN ACADEMIC AND ATHLETIC 
COMPETITIONS;
12. PURCHASE OF BOOKS AND PERIODICALS; AND,
13. SPORTS DEVELOPMENT.
NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, ALL 
EXPENSES ENUMERATED UNDER THIS SECTION SHALL BE SUBJECT 
TO THE PREVAILING POLICIES AND GUIDELINES OF THE 
DEPARTMENT OF EDUCATION (DEPED).
ALL LOCAL SCHOOL BOARDS SHALL SUBMIT AN ANNUAL 
REPORT ON THE COLLECTION, ALLOCATION, AND UTILIZATION OF 
THE SEF TO THE BUREAU OF LOCAL GOVERNMENT FINANCE UNDER 
THE DEPARTMENT OF FINANCE (DOF-BLGF), COPY FURNISHED THE 
LOCAL SANGGUNIAN CONCERNED, REGIONAL OFFICES OF THE 
DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT (DILG), 
DEPED AND THE DEPARTMENT OF BUDGET AND MANAGEMENT ON 
OR BEFORE THE END OF THE FIRST QUARTER OF EVERY FISCAL YEAR
THE DOF-BLGF SHALL THEN SUBMIT TO THE SENATE 
COMMITTEES ON LOCAL GOVERNMENT AND BASIC EDUCATION AND


1 
HOUSE COMMITTEES ON LOCAL GOVERNMENT AND BASIC
EDUCATION AND CULTURE, A CONSOLIDATED REPORT ON THE
3 
COLLECTION AND UTILIZATION OF THE SEF WITHIN NINETY (90)
4 
DAYS FROM RECEIPT OF REPORTS FROM THE LGUS.
5 
ALL REPORTS ON THE SEF SHALL BE POSTED IN AT LEAST
6 
THREE CONSPICUOUS PUBLIC PLACES, WEBSITES OF ALL LOCAL
7 
GOVERNMENT UNITS, AND THE FULL DISCLOSURE POLICY PORTAL
8 
BEING ADMINISTERED BY DILG."
9 
Sec. 2. Implementing Rules and Regulations. - Within sixty (60) days from the
10 
effectivity of this Act, The DILG, DepEd and DBM, shall jointly promulgate the rules
11 
and regulations to effectively implement the provisions of this Act.
12 
Sec. 3. Repealing Clause. - All laws, presidential decrees, executive orders,
13 
letters of instructions, proclamations or administrative regulations that are
14 
inconsistent with the provisions of this Act are hereby repealed, amended, or modified
15 
accordingly.
16 
Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days following its
17 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,