SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 
463 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
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Education ylays a crucial role in the country's economic growth and prosperity. 
Providing quality education is a step forward in preparing our young to compete in a global 
economy that is driven by knowledge and new technologies. 
This bill seeks to amend Republic Act No. 7880, also known as the "Fair and Equitable 
Access to Education Act," for the purpose of eliminating the recurring problem of classroom 
shortage in the country, as well as rationalizing the construction, rehabilitation, replacement, 
completion, and repair of needed school buildings and classrooms. 
The enactment of R.A. No. 7880 was aimed at the realization of the mandate under 
Article XN, Section 2(1) of the Constitution that the State shall "establish, maintain, and support 
a complete, adequate, and integrated system of education relevant to the needs of the people and 
society." The Philippine Constitution likewise has emphasized that budget priority shall be given 
to education. 
However, the annual appropriation for school building program has not been adequate to 
bridge the gaps in classroom requirements. For 2013, the DEPED has reported a classroom 
shortage of 35,000, which number will certainly hamper the attainment of the education sector 
goals if the problem is left unresolved especially when the K-12 program is fully implemented. 
The present state of our educational system demands urgent measures to address the 
problems and issues in the provision of adequate access to better education to the Filipino youth. 
As provided under R.A. No. 7880, 50% of the total capital outlay for the Department of 
Education (DepEd) is allocated pro rata to legislative districts according to student population, 
while only 40% is allocated to those with classroom shortages. The thrust of this bill is to shift 
priority, to areas with scarcity of classrooms by increasing the resource allocation for classroom 
shortages from 40% to 70% of the total capital outlay, while reducing the allocation for capital 
outlay according to student population from 50% to 20%. This is coupled with the proposed 
annual increase in the budget by 20% to eradicate classroom shortage. 
The present formula no longer responds to the existing school building/classroom 
statistics. Because of the priority given to the pro rata sharing based on student enrolment 
without consideration for existing classrooms, a number of legislative districts are allocated more 
than their blassroom requirement while other districts with more critical classroom shortage do 
not get their fair share of classroom allocation. 
The bill also provides that the obligational authority whether Special Allotment Release 
Order (SARO) or its equivalent and the corresponding 15% cash allocation shall be released not 
later than January, 3 I of the pertinent fiscal year. The agency, on the other hand, is compelled to 
complete the bidding and awarding process within sixty (60) days upon receipt of said fund 
release documents. 


The bill also directs the creation of a National School Building Committee composed of 
the DepEd and the Department of Budget and Management (DBM) to draw the Annual School 
Building Expenditure Program. 
With a more meaningful rationalization of the school building program through these 
amendments, the DepEd is expected to be better equipped to respond to the classroom shortage 
and provide education that will prepare our children for a better future. 
Hence, the immediate approval of this bill is earnestly sought. 
Ir;jcv 


SIXTEENTH CONGRESS OF THE 
) 
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REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL -4 
J.l10 :26 
SENATE 
S. No. 
,II l' 'l,' 
<1lYO 
' IUX'l£lVf;,il BY: 
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Introduced by Senator Ralph G. Recto 
AN ACT 
ADDRESSING THE 
CLASSROOM SHORTAGE BY RATIONALIZING THE 
ALLOCAPON OF THE DEPARTMENT OF EDUCATION (DEPED) BUDGET FOR 
CAPITAL OUTLAY, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7880, 
OTHERWISE KNOWN AS THE "FAIR AND EQUITABLE ACCESS TO EDUCATION 
ACT" 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Republic Act No. 7880 is hereby amended by inserting a new Section 3 
2 
after Section 2, to read as follows: 
3 
"SEC. 3. COVERAGE. - THE PROVISIONS OF THIS ACT SHALL 
4 
COVER ALL CAPITAL OUTLAY APPROPRIATIONS FOR THE 
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DEPARTMENT OF EDUCATION (DEPED) INCLUDING, BUT NOT 
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LIMITED TO, THE FUNDS APPROPRIATED FOR THE SCHOOL 
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BUILDING PROGRAM AND LOCALLY-FUNDED PROJECTS OF THE 
8 
DEPED." 
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SEC. 2. Section 3 of the same Act is hereby amended to read as follows: 
10 
"SEC.4. [3]. Definition of Tenus. - As used in this Act, the following 
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tenus are hereby defined as follows: 
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n (A) Capital Outlay - refers to the provisions of the General 
13 
Appropriations Act, particularly those pertaining to the 
14 
budget of the [DECS] DEPED for elementary and secondary 
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education for (i) the acquisition and improvement of sites; (ii) 
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the construction, replacement, rehabilitation and repair of 
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buildings, classrooms, libraries, workshops, toilets AND 
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SANITATION FACILITIES and other structures; and (iii) 
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[furniture, fixtures, and equipment such as, but not limited to, 
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desks, 
chairs, 
laboratory and 
workshop 
implements, 
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computers, books,] OTHER PROPERTY, PLANT AND 
22 
EQUIPMENT IN ACCORDANCE WITH THE CURRENT 
23 
GOVERNMENT 
ACCOUNTING 
STANDARDS 
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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] 
nCB) CLASSROOM - REFERS TO A STRUCTUREIBUILDING 
INTENDED 
FOR 
INSTRUCTIONAL 
PURPOSES, 
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INCLUDING CHAIRS, DESK AND OTHER SIMILAR 
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FIXTURES; AND 
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"(C) Classroom Shortage - refers to the number of classrooms 
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whose construction, in considering the number of students 
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divided by the existing number of classrooms, shall result in a 
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student-classroom of40:1 [45:1]; classrooms, UNDER THIS 
13 
DEFINITION, shall mean those exclusively used for 
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instructional purposes and shall exclude offices, libraries, 
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laboratories, workshops and the like." 
16 
SEC 3. Section 4 of the same Act is hereby amended to read as follows: 
17 
"SEC. 5 [4]. Allocation of Appropriation. - Notwithstanding any 
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provision of the law to the contrary, the annual [DECS] DEPED budget for 
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capital outlay, as defined in Section [3] 4( a), shall be allocated among the 
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legislative districts in the following manner: 
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"(A) TWENTY PERCENT (20%) OF THE TOTAL CAPITAL 
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OUTLAY TO BE ALLOCATED PRO-RATA ACCORDING 
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TO 
THE 
STUDENT 
POPULATION 
OF 
EACH 
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LEGISLATIVE DISTRICT IN RELATION TO THE TOTAL 
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STUDENT POPULATION OF THE COUNTRY; 
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"(B) SEVENTY PERCENT (70%) OF THE TOTAL CAPITAL 
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OUTLAY TO BE ALLOCATED ONLY AMONG THOSE 
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LEGISLATIVE 
DISTRICTS 
WITH 
CLASSROOM 
29 
SHORTAGES, PRO-RATA TO THE TOTAL CLASSROOM 
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SHORTAGE OF THE COUNTRY PURSUANT TO SECTION 
31 
4(C) AS DETERMINED BY THE DEPED; AND 
32 
"(C) 
TEN PERCENT (10%) 
TO 
BE ALLOCATED 
TO 
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NATIONAL HIGH SCHOOLS IN ACCORDANCE WITH 
34 
THE IMPLEMENTATION OF THE POLICY OF THIS ACT 
35 
AS MAY BE DETERMINED BY DEPED." 
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[(a) On the first year of the effectivity of this Act: 
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(1) thirty percent (30%) of the total capital outlay to be 
38 
allocated pro-rata according to each legislative district's 
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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 
(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 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) forty percent (40%) 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 
(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.] 
24 
SEC. 4. Section 5 of the same Act is hereby amended to read as follows: 
25 
"SEC. 6 15]. Use of Allocation. The total amount allocated herein shall 
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be used exclusively for capital outlay pursuant to the educational priorities of 
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the legislative district, as detennined by the IDECS] DEPED upon prior 
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consultation with the representative of each legislative district: Provided, That 
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the primary objective in the use of any allocation shall be to eliminate 
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SCHOOLBUILDING/classroom shortages if any: PROVIDED, HOWEVER, 
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THAT FOR EVERY SCHOOLBUILDING/CLASSROOM CONSTRUCTED, 
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THE APPROPRIATE NUMBER OF TOILETS AND/OR SANITATION 
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FACILITIES SHALL ALSO BE CONSTRUCTED IN ACCORDANCE 
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WITH 
THE 
SCHOOL 
SANITATION AND 
HEALTH 
SERVICES 
35 
CHAPTER OF THE CODE ON SANITATION OF THE PHILIPPINES 
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(CHAPTER VI, P.D. 856): Provided, further, That any amounts allocated in 
37 
accordance with [subparagraph (1) of paragraphs (a) and (b)] PARAGRAPH 
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(a) of the preceding section shall be used only for the acquisition or 
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improvement of school sites, construction of school buildings and classrooms 
I and the purchase of material or equipment that directly aid in education: 
I Provided, furthermore, That the amount so appropriated in accordance with 
[subparagraph (2) of paragraphs (a) and (b)] PARAGRAPH (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)] PARAGRAPH (b) 
should exceed the amount required to meet classroom shortage, the excess 
shall be integrated with [subparagraph (1) of paragraphs (a) and (b)] 
PARAGRAPH (a) of the same section excluding capital outlays of division 
offices, regional and central offices. 
SEC. 5. Republic Act No. 7880 is hereby amended by inserting two (2) new sections 
after Section 5, to read as follows: 
"SEC.7. 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 TWENTY PERCENT (20%) TO ACHIEVE THE 
TARGETED CLASSROOM-STUDENT RATIO AND TO ELIMINATE 
CLASSROOM SHORTAGE IN THE COUNTRY. 
"SEC. 8. REPORTORIAL REQUIREMENT. - THE DEPARTMENT 
OF BUDGET AND MANAGEMENT (DBM), THE DEPARTMENT OF 
PUBLIC WORKS AND HIGHWAYS (DPWH), AND THE DEPED ARE 
REQUIRED TO SUBMIT TO THE RESPECTIVE COMMITTEES ON 
EDUCATION OF BOTH HOUSES OF CONGRESS AN ANNUAL REPORT 
ON THE RELEASE AND UTILIZATION OF THE CAPITAL OUTLAY 
UNDER THIS ACT: PROVIDED, THAT SUCH SUBMISSION SHALL BE 
SEPARATE AND DISTINCT FROM THE REPORTS THAT THE SAID 
! DEPARTMENTS SUBMIT TO CONGRESS IN RELATION TO THE 
DELIBERATIONS ON THE GENERAL APPROPRIATIONS BILL." 
SEC. 6. Sections 6 and 7 of Republic Act No. 7880 are hereby renumbered as 
Sections 9 and 10 respectively. 
SEC. 7. Section 8 of the same Act is hereby amended to read as follows: 
"SEC. 
11 
[8]. 
Penal Clause. ANY VIOLATION OF THE 
PROVISIONS 
OF 
THIS 
ACT 
SHALL 
BE 
CONSIDERED 
AS 
DERELICTION 
OF 
DUTY 
AS 
SET 
FORTH 
IN 
PERTINENT 
ADMINISTRATIVE AND CIVIL SERVICE LAWS, AND SHALL BE 
ADMINISTRATIVELY 
DEALT 
WITH 
IN 
ACCORDANCE 
TO 
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APPROPRIATE EXISTING ADMINISTRATIVE PROCEDURES AND 
PENALTIES. 
"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 6 [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." 
SEC. 8. R.A. No. 7880 is hereby amended by inserting a new Section 13 after Section 9 
to read as follows: 
"SEC. 13. MISCELLANEOUS PROVISIONS. ALL REFERENCES 
TO THE "DEPARTMENT OF EDUCATION, CULTURE AND SPORTS" IN 
, 
REPUBLIC ACT NO. 7880 ARE ACCORDINGLY AMENDED TO READ 
AS "DEPARTMENT OF EDUCATION (DEPED)." 
SEC. 9. The other sections in R.A. No. 7880 affected by the preceding sections are 
hereby renumbered accordingly. 
SEC. 10. Separability Clause. - T~e provisions of this Act are hereby declared to be 
separable av-d, in the event any provision is declared unconstitutional, the other provisions which 
are not affefted thereby shall remain in full force and effect. 
SEC. 11. Repealing Clause. - All ~aws, decrees, orders, rules and regulations, and all 
other issuances or parts thereof, which are inconsistent with this Act are deemed repealed or 
modified accordingly. 
SEC. 12. Effectivity. -This Act shall I take effect fifteen (15) days following its pUblication 
in the Official Gazette or in a newspaper of general circulation. 
Approved, 
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