TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. 935
V!9ftllT ol I . 
:■ ■ -1 -r
25 AUG -5 P3 '55
RCCEil'aJBV
Introduced by Senator Jinggoy Ejercito Estrada
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
EXPLANATORY NOTE
The Special Education Fund (SEF) arises from the additional one percent 
(1%) tax on real property and is allotted by the Local Government Code to the local 
school boards. This Fund is 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 in 
amounts determined by the local school boards themselves. However, these 
purposes do not adequately respond to the challenges of the changing times, 
especially with the evolving needs of the education sector.
The Second Congressional Commission on Education (EDCOM 2) in its Year 
One Report, "Miseducation: The Failed System of Philippine Education" revealed 
that, "there is a marked disparity in SEF income among different types of local 
government units". The Commission noted that the median SEF income of 
municipalities is only 4% of that of cities and provinces. Meanwhile, first class 
municipalities have SEF incomes 68 times more than their sixth class counterparts."


But the more serious concern is the underutilization of the SEF which, according to 
EDCOM 2's analysis, amounted to P15 billion in 2022.1
This legislation proposes the expansion of the purposes and application of 
the SEF to include expenses in health and sanitation such as procurement of 
personal protective equipment, vaccines, disinfectants, as well as psychosocial first 
aid and examination for teaching and non-teaching personnel. Expenses incurred in 
relation to blended and remote learning, particularly the acquisition of electronic 
tools/gadgets and internet connectivity, are incorporated. The listing is also 
expanded to include financial support for students participating in international 
trainings and competitions.
Furthermore, this measure institutionalizes the allowable expenses chargeable 
against the SEF as embodied in Joint Circular No. 1, s. 2017 and JC No. 2, s. 2020, 
issued by the Department of Education (DepEd), Department of Budget and 
Management (DBM) and Department of the Interior and Local Government (DILG). 
This hopes to provide clarification and guidance for local government units with 
respect to the proper disbursement of the SEF.
The passage of this legislation is earnestly sought.
INGGOY EJERCITO ESTRADA
1 LGU Special Education Fund underutilized, inequitable - EDCOM 2
2


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TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
of 
'f i-K
25 AUG -5 P3 '55
SENATE 
S. No. 935
RI-ClIV‘-:,0 BV:
Introduced by Senator Jinggoy Ejercito Estrada
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 and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Section 272 of Repubiic Act No. 7160 is hereby amended to read as
follows:
"Section 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—aed—equipment,—educational
research, purchase of books and periodicals;—and sports
development as-determined and approved by the-local
school board] FOLLOWING PURPOSES:


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"1) OPERATION AND MAINTENANCE OF 
PUBLIC SCHOOLS:
"A. PAYMENT OF SALARIES, ALLOWANCES AND 
OTHER BENEFITS OF TEACHING AND NON-TEACHING 
PERSONNEL;
"B. ESTABLISHMENT AND MAINTENANCE OF 
EXTENSION CLASSES, INCLUDING THE CREATION OF 
TEACHER ITEMS FOR SAID CLASSES;
"C. PAYMENT OF SALARIES/WAGES OF 
UTILITY WORKERS AND SECURITY GUARDS HIRED 
IN PUBLIC ELEMENTARY AND SECONDARY SCHOOLS 
WHICH HAVE NOT BEEN PROVIDED SUCH POSITION 
IN THE BUDGET OF THE DEPARTMENT OF 
EDUCATION (DEPED);
”D. PAYMENT OF EXPENSES PERTAINING TO 
THE OPERATION OF SCHOOLS INCLUDING 
ELECTRICITY AND WATER BILLS;
"E. PAYMENT OF COSTS AND EXPENSES IN 
CONNECTION WITH THE ACQUISITION, 
PRODUCTION, REPRODUCTION, AND PRINTING OF 
LEARNING MATERIALS FOR THE LEARNERS, SUCH AS 
SELF-LEARNING MODULES, TEXTBOOKS, ACTIVITY 
SHEETS AND STUDY GUIDES/MANUALS APPROVED 
BY THE DEPED;
"F. PURCHASE OF EXTERNAL STORAGE 
DEVICES;
"G. COMMUNICATION EXPENSES SUCH AS, BUT 
NOT LIMITED TO LANDLINE PHONE FOR 
COMMUNICATION, LOAD FOR MOBILE PHONE 
COMMUNICATION AND WI-FI CONNECTION;
"H. PAYMENT OF SUBSCRIPTION FEE FOR 
VIDEOCONFERENCING 
OR 
REMOTE


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COMMUNICATION TOOLS/APPLICATIONS OR 
PLATFORMS;
nI. PAYMENT OF HONORARIA AND 
ALLOWANCES OF LOCALLY-HIRED PERSONNEL, 
TRAINED AND QUALIFIED TUTORS OR LEARNING 
FACILITATORS;
"J. TRAINING/WEBINARS FOR TEACHING AND 
NON-TEACHING PERSONNEL, SCHOOL LEADERS, 
PARENTS, LEARNING FACILITATORS AND 
COMMUNITY EDUCATION VOLUNTEERS; AND
"K. PAYMENT OF COST AND EXPENSES IN THE 
DISTRIBUTION AND RETRIEVAL OF LEARNING 
MATERIALS FOR THE LEARNERS, SUCH AS, BUT NOT 
LIMITED TO TRANSPORTATION EXPENSES OF DEPED 
PERSONNEL IN THE DISTRIBUTION AND RETRIEVAL 
OF SELF-LEARNING MODULES, AND SHIPMENT, 
DELIVERY AND COURIER SERVICES.
"2) CONSTRUCTION AND REPAIR OF SCHOOL 
BUILDINGS:
"A. CONSTRUCTION, REPAIR AND 
MAINTENANCE OF SCHOOL BUILDINGS AND OTHER 
FACILITIES, SUCH AS SCIENCE/COMPUTER 
LABORATORIES, LIBRARIES, ADMINISTRATION 
OFFICES, AMONG OTHERS, FOR PUBLIC 
ELEMENTARY AND SECONDARY SCHOOLS, WHICH 
ARE DEEMED TO HAVE SHORTAGE OF CLASSROOMS 
OR OF OTHER FACILITIES;
"B. ACQUISITION AND TITLING OF SCHOOL 
SITES; AND,
"C. INSTALLATION OF HEALTH AREAS OR 
FACILITIES SUCH AS, BUT NOT LIMITED TO SCHOOL 
CLINICS AND WASH AREAS.


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"3) FACILITIES AND EQUIPMENT:
"A. ACQUISITION OF LABORATORY, 
TECHNICAL AND SIMILAR APPARATUS, AND 
INFORMATION TECHNOLOGY EQUIPMENT AND 
COROLLARY SUPPORTING SERVICES SUCH AS 
INTERNET CONNECTIVITY;
"B. PERSONAL COMPUTER, LAPTOP 
COMPUTER, TABLET, ELECTRONIC NOTEBOOK AND 
SMARTPHONE;
"C. PRINTER, SCANNER, PHOTOCOPYING 
MACHINE, AND OTHER PRINTING OR 
PHOTOCOPYING EQUIPMENT AND THEIR 
CONSUMABLES;
"D. TELEVISION SET, ANTENNA/CABLE 
SATELLITE CONNECTION, RADIO WITH AM/FM 
CHANNEL, TWO-WAY RADIO FOR REMOTE/OFF GRID 
AREAS; AND,
"E. PRIMARY AND SECONDARY BATTERIES, 
CAR BATTERY AND SOLAR PANEL.
"4) HEALTH AND SANITATION EXPENSES:
"A. PERSONAL PROTECTIVE EQUIPMENT SUCH 
AS, BUT NOT LIMITED TO, FACE MASKS, FACE 
SHIELDS, HAND GLOVES, SURGICAL CAPS, HATS, EYE 
GOGGLES, AND HAZMAT SUITS;
"B. MEDICAL DEVICES SUCH AS, BUT NOT 
LIMITED TO, THERMAL/TEMPERATURE SCANNERS, 
AND DIGITAL THERMOMETERS;
"C. VACCINES, VITAMINS AND MINERALS; AND 
FOOD SUPPLEMENTS;
"D. HAND SANITIZERS, ALCOHOL, 
DISINFECTANTS, ANTI-BACTERIAL OR GERMICIDAL


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SOAPS, CLEANING EQUIPMENT, BLEACH, HYGIENE 
PARAPHERNALIA, FOOT BATH; AND,
"E. PSYCHOSOCIAL FIRST AID, MENTAL AND 
PHYSICAL EXAMINATION OR CHECK-UP FOR 
TEACHING AND NON-TEACHING PERSONNEL AND 
LEARNERS, AND MEDICAL DOCTOR'S 
CONSULTATION.
"5) EDUCATIONAL RESEARCH OTHER THAN 
THE RESEARCH SUBJECT AREAS FUNDED IN THE 
DEPED BUDGET, SUBJECT TO THE PREVAILING 
POLICIES AND GUIDELINES OF THE DEPED;
"6) PURCHASE OF PRESCRIBED TEXTBOOKS, 
BOOKS, PERIODICALS, TEACHING AIDS AND OTHER 
INSTRUCTIONAL MATERIALS FOR THE LIBRARIES OF 
THE DIFFERENT ELEMENTARY AND SECONDARY 
SCHOOLS IN THE PROVINCE, CITY AND 
MUNICIPALITY, AND PURCHASE OF INSTRUCTIONAL 
MATERIALS, WORKBOOKS AND TEXTBOOKS NEEDED 
BY PUBLIC ELEMENTARY AND SECONDARY 
SCHOOLS;
"7) SPORTS DEVELOPMENT: EXPENSES FOR 
SCHOOL SPORTS ACTIVITIES AT THE NATIONAL, 
REGIONAL, DIVISION, DISTRICT, MUNICIPAL AND 
BARANGAY LEVELS, AS WELL AS FOR OTHER DEPED 
RELATED ACTIVITIES;
"8) PAYMENT OF EXPENSES AND/OR 
PROVISION OF FINANCIAL ASSISTANCE FOR 
STUDENTS PARTICIPATING IN INTERNATIONAL 
TRAININGS, CONFERENCES, AND COMPETITIONS:
"9) FUNDING FOR THE EARLY CHILDHOOD 
CARE AND DEVELOPMENT (ECCD) PROGRAM:


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"A. DIRECT SERVICES RELATED TO THE
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IMPLEMENTATION OF THE ECCD PROGRAM, SUCH AS
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SALARIES/ALLOWANCES OF LOCALLY-HIRED CHILD
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DEVELOPMENT TEACHERS AND/OR DAY CARE
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WORKERS, ETC.;
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"B. ORGANIZATION AND SUPPORT OF PARENT
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COOPERATIVES TO ESTABLISH COMMUNITY-BASED
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ECCD PROGRAMS;
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"C. PROVISION OF COUNTERPART FUNDS FOR
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THE CONTINUING PROFESSIONAL DEVELOPMENT OF
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ECCD PUBLIC SERVICE PROVIDERS;
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"D. PROVISION OF FACILITIES FOR THE
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CONDUCT OF THE ECCD PROGRAM; AND,
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"E. PAYMENT OF EXPENSES PERTAINING TO
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THE OPERATIONS OF THE NATIONAL CHILD
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DEVELOPMENT CENTERS, INCLUDING BUT NOT
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LIMITED TO UTILITIES AND COMMUNICATION."
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Sec. 2. Separability Clause. - If any provision of this Act is declared invalid or
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unconstitutional, the remaining provision not affected thereby shall continue to be in
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full force and effect.
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Sec. 3. Repealing Clause. - All laws, decrees, orders or regulations or part
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thereof inconsistent with this Act are hereby repealed or modified accordingly.
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Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days following the
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completion of its publication in the Official Gazette or in a national newspaper of
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general circulation.
Approved,