CONGRESS OF THE PHILIPPINES.
SIXTEENTH CONGRESS
First Regular Session

House stn. SOS

Introduced by Representatives
GLORIA MACAPAGAL ARROYO and DIOSDADO MACAPAGAL ARROYO

EXPLANATORY NOTE

Studies show that out of every hundred Filipino children who enter Grade One, only 69
reach grade 6 and only 48 complete high school and 18 finish college. The dropouts come
mostly from the poorest regions ~ like Bicolandia and Eastern Visayas- which have also fallen
way behind the other regions in development.

Throughout the years, the number of students entering the public schools continues to
increase primarily because most families sent their children to public schools because of the
unabated increase in tuition fees in private schools. In this regard most of these public schools
have become so congested and crowded thus making it less conducive to learning.

It is unfortunate that some public schools cannot anymore accommodate new students
because of insufficient school facilities like classrooms, desks and textbooks. The continuous
increase in the enrollment in public schools every year and the pressing budgetary problems of
the government aggravate the classrooms and desk backlog in schools.

The passage of the Expanded Government Assistance to Students and Teachers in
Private Education (GASTPE) in 1998 offers many opportunities for the poor students who
cannot afford to study in private schools by providing a financial assistance through the tuition
fee supplements and education service contracting scheme.

Throughout the GASTPE law, the system of voucher system in tuition fee payment had
been introduced. However, there is a need to further improve the system and increase the


amount of assistance to students-grantees by amending some sections of the students and the
school.

For the past years of implementation, we have seen 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, here is 2 need to increase the amount of the financial assistance
because of the growing needs of the students both in the Secondary and tertiary levels.

With the passage of this amendatory bill, we can 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 facilities. This way
more poor Filipinos will have access to higher levels of education even in private education -
which have been denied to them in the past. For the abovementioned reasons, approval of the
bill is earnestly urged

GLORIAMACAPAGAL ARROYO DIOSDADG-MACAPAGAL ARROYO.
Second District, Pampanga Second District, Camarines Sur


CONGRESS OF THE PHILIPPINES
SIXTEENTH CONGRESS
First Regular Session

HOUSE OF REPRESENTATIVES
House Bill No. 1982

Introduced by Representatives
GLORIA MACAPAGAL ARROYO and DIOSDADO MACAPAGAL ARROYO

AN ACT AMENDING 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 THEREFORE

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

SECTION 1, Republic Act 8545, otherwise known as the “Expanded Government
Assistance to Students and Teacher 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 programe 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 5"” and 6" CLASS 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 foregoing 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 assistance 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 consist 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 Philippine Education Student
Financial Assistance Program (PESFA)

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

(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) Educational 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 Department Fund

SECTION 4. FOR PURPOSES 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 BASIS OF SELECTING/ ACCREDTING SCHOOLS THAT
WOULD LIKE TO PARTICIPATE 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 program under
GASTPE.”

SECTION 5. Section 5 of RA 8545 is hereby amended to read as follows:
“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 reimburse the vouchers from the
schools concerned within one hundred twenty (120) days from the close of the
registration period PROVIDED FURTHER THAT THE AMOUNTOF 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 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 SEMESTER, THE GOVERNMENT SHALL PROVIDE THE STUDENT
WITH TEXBOOK ALLOWANCE WHICH IS EQUIVALENT TO AT LEAST ONE THOUSAND PESOS
(P1,000) A YEAR OR THE ANNUAL PER CAPITA TEXTBOOK ALLOOCATION 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:
EDUCATION 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 STUDENTS
WHO WANT TO ENROLL IN PRIVATE SCHOOLS BUT DO NOT HAVE THE
FINANCIAL CAPABILITY TO AFFORD THE TUTITION FEE IN THESE SCHOOLS.

(b) The Department shall also enter into contracts with private schools
ACCERDITED BY THE DECS particularly in communities where THE PUBLIC
SCHOOLS CANNOT ACCOMMODATE THE STUDENTS DUE TO THE INCREASING
STUDENT POPULATION, in which case the Department shall PROVIDE
FINANCIAL ASSISTANCE WHICH MAY COVER THE TUITIO AND OTHER FEES OF
STUDENTS WHO SHALL ENROLL IN SAID PRIVATE SCHOOLS.

(c) FOR STUDENTS ENROLLED IM 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.


(d) 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.

(f) The amount of assistance to private high schools participating in the program
shall be guaranteed for a number of slots as of the effectivity of this Act as
the number of students availing of educational service contracting for
SCHOOL TEAR 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 SCHOOLS EXCEEDS THE AMOUNT OF SUBSIDY PRESCRIBED BY THE
STUDENT ASSISTANCE COUNCIL, THE PRIVATE SCHOOL MAY SHOULDER THE
CORRESPONDING BALANCE AS COUNTERPART FUNDING.

(h) THE STATE ASSISTANCE COUNCIL MAY IN SUBSEQUENT YEARS INCREASE THE
AMOUNT OF FINANCIAL ASSSITANCE 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
ENROLLED 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 hereby amended as follows:

THE VOUCHER SYSTEM OF PRIVATE EDUCATION STUDENT 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 UNDERPRIVILEDGED STUDENTS WHO SHALLL 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 IN THE NEAREST CHED OR TESDA REGIONAL OFFICE.

THE CHED SHALL REVIEW AND AVALUATE THE PRESENT COURSES OF STUDENTS WHICH
ARE CONSIDERED 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 UNDERPRIVILEDGED STUDENT SHALL REFER TO A
STUDENT WHOSE GROSS IMCOME, IN ANY AND THAT OF THE COMBINED ANNUAL GROSS
INCOME OF HIS/HER PARENTS |S BELOW THE POVERTY THRESHOLD INCOME.

SECTION 10. SCHOLARSHIP FUND IN PRIVATE HIGH SCHOOLS, COLLEGES AND.
UNIVERSITIES. THE PARTICIPATING PRIVATE SCHOOLS IN THE GASTE 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,
ALLOWANCESAND OTHER ADMINISTRATORS WHO ARE PRINCIPAL STOCKHOLDERS OF THE
SCHOOL, AND MAY BE USED TO COVER INCREASES AS PROVIDED 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 MODERNIZATON 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 DETAILED 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 DEFFECIENCY 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
ADMINSITRATION OF THE PHILIPPINE 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 CHILDREN OF OVERSEAS WORKERS,

(5) ANY OTHER LUMP SUM APPROPRIATIONS OR COLLECTIONS UNDER THE
SUPERVISION AND CONTRAOL 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.) FOR FISCAL YEAR 2001.
THEREAFTER, SUCH AMOUNT AS MAY BE NECESSARY FOR ITS CONTINUED IMPLEMENTATION
SHALL BE INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS ACT.


SECTION 13. Penalties. In cases of any violation of the provision of this Act or the rules
and regulations promulgated pursuant thereto by an institution, the Department of Education
(DepEd) 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 State Committee on Education and House Committee on Basic
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 on 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 and 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 paths thereof which are inconsistent with this Act are hereby repealed
‘or modified accordingly.

SECTION 17. Separability Clause. \f any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other provisions
not affected thereby.


SECTION 18. Effectivity Clause. This Act shall take effect immediately upon its
publication in at least two newspaper of general circulation.

Approved,