FIFTEENTH CONGRESS OFTHE) “
REPUBLIC OF THE PHILIPPINES )

First Regular Session y
SENATE
Senate Bill No._ 2035

Introduced by SENATOR EDGARDO J. ANGARA

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 emolument in public schools every year and the pressing
budgetary problems of the government aggravate the classroom 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.

Through 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
Expanded GASTPE law so that it can become more responsive to the needs of the
students and the schools.

For the past years of implementation, we have seen that 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, there is a 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 had been denied to them in the past. For the
abovementioned reasons, approval of this bill is earnestly urged.

EDGARDO J. ANGARA
Senator



FIFTEENTH CONGRESS OF THE _)
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

SENATE

Senate Bill No,_ 2035

Introduced by SENATOR EDGARDO J. ANGARA

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 THEREFOR

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

SEC. 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:

SEC. 2. Section 3 is hereby amended to read as follows:

“Criteria for Assistance. The programs 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 Sth AND 6th 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 forgoing 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.”

SEC. 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 Philippines Education Student
Financial assistance Program ( PESFA);

(4) Expansion of the existing Educational 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) Education 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 Development Fund

SEC. 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 A BASIS
OF SELECTING / ACCREDITING 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 programs
under GASTPE.”

SEC. 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 shall reimburse the vouchers, from the
schools concerned within one hundred twenty (120)
days from the close of the registration period.
PROVIDED FURTHER THAT THE AMOUNT OF
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 INCREASE THE AMOUNT
OF FINANCIAL ASSITANCE 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.

SEC. 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 TEXTBOOK



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ALLOWANCE WHICH IS EQUIVALENT TO AT LEAST ONE THOUSAND PESOS
(Pl, 000) A YEAR OR THE ANNUAL PER CAPITA TEXTBOOK ALLOCATION
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.

SEC. 7. Section 7 is hereby amended as follows:
EDUCATIONAL 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 THE
STUDENTS WHO WANT TO ENROLL IN PRIVATE SCHOOLS
BUT DO NOT HAVE THE FINANCIAL CAPABILITY TO
AFFORD THE TUITION FEE IN THESE SCHOOLS.

(b) The Department shall also enter into contracts with private schools
ACCREDITED 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 TUITION
AND OTHER FEES OF STUDENTS WHO SHALL ENROLL-IN
SAID PRIVATE SCHOOLS.

(c) FOR STUDENTS ENROLLED IN 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.

(€) 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;



(£) 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 YEAR 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 SCHOOL EXCEEDS THE AMOUNT OF
SUBSIDY PRESCRIBED BY THE STUDENT ASSISTANCE
COUNCIL, THE PRIVATE SCHOOL MAY SHOULDER THE
CORRESPONDING BALANCE AS COUNTERPART FUNDING.

(b) THE STATE ASSISTANCE COUNCIL MAY IN SUBSEQUENT
YEARS INCREASE THE AMOUNT OF FINANCIAL
ASSISTANCE FOR STUDENTS UNDER THE ESC PROGRAM
SUBJECT TO THE AVAILABILITY OF FUNDS.

SEC. 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.

SEC. 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
FINANCLAL ASSISTANCE (PESFA) PROGRAM. THE GOVERNMENT
SHALL UNDERTAKE AN ANNUAL 10% INCREASE IN THE AMOUNT OF
ASSISTANCE PROVIDED UNDER THE PESFA PROGRAM COVERING
THE TUITION FEB, 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
UNDERPRIVILEGED STUDENTS WHO SHALL BE SBLECTED 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 EVALUATE ‘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 UNDERPRIVILEGED STUDENT
SHALL REFER TO A STUDENT WHOSE GROSS INCOME, IN ANY AND
THAT OF THE COMBINED ANNUAL GROSS INCOME OF HIS/HER
PARENTS IS BELOW THE POVERTY THRESHOLD INCOME.

SEC. 10. SCHOLARSHP FUND IN PRIVATE HIGH SCHOOLS, COLLEGES
AND UNIVERSITIES.- THE PARTICIPATING PRIVATE SCHOOLS IN THE
GASTPE 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 FINANCLAL ASSISTANCE FOR POOR BUT DESERVING
STUDENTS.

SEC. 11. CONDITIONS FOR TUITION FEE SUBSIDY. - ASSISTANCE
PROVIDED IN THE PRECEDING SECTIONTIONS SHALL BE GRANTED ON THE
CONDITION THAT SEVENTY PERCENT (70%) OF THE AMOUNT SUBSIDIZED
SHALL GO TO THE PAYMENT OF SALARIES, WAGES, ALLOWANCES AND
OTHER ADMINISTRATORS WHO ARE PRINCIPAL STOCKHOLDERS OF THE
SCHOOL, AND MAY BE USED TO COVER INCREASES AS PROVIDED FOR 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 MODERNIZATION 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.

SEC. 12, APPROPRIATIONS
THE DEPARTMENT OF EDUCATION MAY UTILIZE ITS SAVINGS FROM
ANY ITEM OF APPROPRIATION IN FISCAL YEAR 2001. PROVIDED THAT ANY
DEFICIENCY SHALL BE TAKEN FROM ANY OR ALL OF THE FOLLOWING
SOURCES:
() TWENTY PERCENT (20%) OF THE TRAVEL TAX AND
AIRPORT DEPARTURE TAX COLLECTIONS;
(2) TEN PERCENT (10%) OF ANY FUNDS COLLECTED BY THE
SUGAR REGULATORY ADMINISTRATION OF THE
PHILIPPINES 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 CONTROL 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 (P1,000,000,000.00) FOR FISCAL YEAR 2001. THEREAFTER, SUCH
AMOUNT AS MAY BE NECESSARY FOR ITS CONTINUED IMPLEMENTATION
SHALL BE INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS ACT.

SEC. 13. Penalties, In case of any violation of the provisions 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.

SEC. 14, The Senate 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.

SEC, 15. The State Assistance Council led by the Department of Education,
Commission on Higher Education and Technical Education and Skills 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.

SEC. 16. Repealing Clause. All laws and decrees and such letters of instruction,
rules and regulations or parts thereof which are inconsistent with this Act are hereby
repealed or modified accordingly.

SEC. 17 Separabitity Clause. If any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other

provisions not affected thereby.

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

Approved,