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Republic of the Philippines

House of Representatives
Quezon City

EIGHTEENTH CONGRESS

First Regular Session

House Bill No. 295

EXPLANATORY NOTE

The Special Education Fund (SEF) was originally established under Republic Act (RA)
5447 to contribute to the financial support of the goals of education as provided by the
Constitution. The SEF was later entrenched in R.A. 7160 as a source of fund for the
supplementary budgetary needs for the operation and maintenance of public schools.

Like R.A. 5447, however, Section 272 of R.A. 7160 limited the use of the SEF only to a
few expenditure items, to wit:

SEC. 272. Application of Proceeds of the Additional One Percent
SEF Tax. — The proceeds from the additional one percent (1%) tax on
real property accruing to the Special Education Fund (SEF) 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, construction and repair of school buildings, facilities, and
equipment, educational research, purchase of books and periodicals,
and sports development as determined and approved by the Local
‘School Board.

More than 50 years after it was established, the classes of expenses as well the priorities
that need to be addressed by the country's public school system have expanded and the
funding required have multiplied exponentially. The burden is exacerbated by the perennial
inadequacy of national appropriation to cover the growing financial requirements of public
elementary and secondary schools. Thus, expanding the expenditure items on which the
proceeds of the SEF may be allocated could provide the much-needed relief.

‘Support for this bill is therefore earnestly sought from my colleagues.

REP. beast IQUE S. GARCIA Ill


Republic of the Philippines
House of Representatives
‘Quezon City
EIGHTEENTH CONGRESS is
First Regular Session

House Bill No. 205

Introduced by Representative Jose Enrique S. Garcia I

AN ACT
EXPANDING THE PURPOSES AND APPLICATION OF THE SPECIAL EDUCATION FUND,
AMENDING FOR THE PURPOSE SECTIONS 100 AND 272 OF REPUBLIC ACT NO. 7160,
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991

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

SECTION 1. Section 100 of Republic Act No. 7160, otherwise known as the “Local
Government Code of 1991” is hereby amended to read as follows:

"SEC. 100. Meetings and Quorum; Budget. - (a) The local schoo! board
shall meet at least once a month or as often as may be necessary.

(b) Any of the co-chairmen may call a meeting. A majority of all its
members shall constitute a quorum. However, when both co-chairmen are
present in a meeting, the local chief executive concemed, as a matter of
protocol, shall be given preference to preside over the meeting. The division
superintendent, city superintendent or district supervisor, as the case may be,
shall prepare the budget of the school board concerned. Such budget shall be
supported by programs, projects, and activities of the school board for the
ensuing fiscal year. The affirmative vote of the majority of all the members shall
be necessary to approve the budget.

(c) The annual school board budget shall give priority to the following:

(1) Construction, repair, and maintenance of school buildings,
ADMINISTRATION OFFICES, ASSEMBLY HALLS, LABORATORIES,
and other facilities AND IMPROVEMENTS of public elementary and
secondary schools;

(2) OPERATION AND MAINTENANCE OF PUBLIC ELEMENTARY
AND SECONDARY SCHOOLS;

(3) [(2)] Establishment and maintenance of extension classes where
necessary; [and]


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(4) [(3)] Sports activities at the division, district, municipal, and
barangay levels; AND

(5) FUNDING FOR THE EARLY CHILDHOOD CARE AND
DEVELOPMENT PROGRAM.”

SEC. 2. Section 272 of the same Code is hereby amended to read as follows:

“SEC. 272. Application of Proceeds of the Additional One Percent SEF
Tax. - The proceeds from the additional one percent (1%) tax on real property
accruing to the Special Education Fund (SEF) shall be automatically released
to the local schoo! 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 FOLLOWING:
[operation and maintenance of public schools, construction and repair of schoo
buildings, facilities, and equipment, educational research, purchase of books
and periodicals, and sports development as determined and approved by the
Local Schoo! Board."]

(1) CONSTRUCTION, REPAIR, AND MAINTENANCE OF
SCHOOL BUILDINGS, ADMINISTRATION OFFICES, ASSEMBLY
HALLS, LABORATORIES, AND OTHER FACILITIES AND
IMPROVEMENTS OF PUBLIC ELEMENTARY AND SECONDARY
SCHOOLS;

(2) OPERATION AND MAINTENANCE OF PUBLIC SCHOOLS
INCLUDING PAYMENT OF COMPENSATION, SALARIES, WAGES,
ALLOWANCES, AND OTHER BENEFITS OF TEACHING AND NON-
TEACHING PERSONNEL: PROVIDED, THAT ALLOWANCES AND
BENEFITS AUTHORIZED BY LAW FOR TEACHING AND NON-
TEACHING PERSONNEL BUT NOT SUFFICIENTLY PROVIDED FOR
BY THE DEPARTMENT OF EDUCATION AND THE DEPARTMENT OF
BUDGET AND MANAGEMENT MAY BE PAID FROM THE SEF
SUBJECT TO AVAILABILITY OF FUNDS;

(3) ESTABLISHMENT AND MAINTENANCE OF EXTENSION
CLASSES WHERE NECESSARY;

(4) ACQUISITION AND TITLING OF SCHOOL SITES;

(5) PURCHASE AND MAINTENANCE OF TRANSPORT
VEHICLES, EQUIPMENT, AND APPARATUS EXCLUSIVELY FOR
‘SCHOOL USE;

(6) ACQUISITION AND/OR SUBSCRIPTION OF BOOKS,
PERIODICALS, TEACHING AIDS, AND INSTRUCTIONAL
MATERIALS;

(7) EDUCATIONAL RESEARCHES, TRAININGS, WORKSHOPS,
OR CONFERENCES UNDERTAKEN OR ATTENDED TO BY
TEACHERS AND STUDENTS;

(8) SPORTS DEVELOPMENT AS MAY BE DETERMINED AND
APPROVED BY THE LOCAL SCHOOL BOARD;


(9) FUNDING FOR THE EARLY CHILDHOOD CARE AND
DEVELOPMENT PROGRAM; AND

(10) SUCH OTHER EXPENSES NECESSARY OR INCIDENT TO
THE OPERATION AND MAINTENANCE OF PUBLIC SCHOOLS
WHICH ARE NOT SUFFICIENTLY PROVIDED FOR IN THE REGULAR
APPROPRIATION OF THE DEPARTMENT OF EDUCATION.

SEC. 3. All laws, decrees, executive orders, rules and regulations or other issuances or
parts thereof inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SEC. 4. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved.