FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 690 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
k, 
I 
Article XIV, Section I of the Constitution provides that "the State shall protect and 
promote the right of all citizens to quality education at all levels and shall take 
appropriate steps to make such education accessible to all". 
Thus, education has 
always enjoyed the highest budgetary priority in the annual budget of government as 
mandate by the Constitution itself. 
However, the meager resources of government led to the stagnation of 
budgetary allocation across all sectors including education. As a result, the resources 
provided for education has not kept pace with the growing student population. Massive 
backlog in classrooms, textbooks, desks and even teachers has continued to plague the 
public education system. 
The passage of the Government Assistance to Students and Teachers in Private 
Education (GASTPE) Program in 1989 and its subsequent amendment thereto in 1998 
tapped the potential of the private education system to fulfill the Constitutional mandate 
to make education accessible to all Filipinos. It made use of the otherwise unutilized 
capacity Of the private schools to cater to students which cannot be accommodated by 
the public education system . 
. Since its inception in 1989, GASTPE has provided support to over 700,000 
beneficiaries in private schools. It has helped more than 1,400 private schools which 
enrolled in the program. The program has been very successful but has not achieved 
full potential due to budgetary constraints. According to the Department of Education, at 
least P2 billion pesos is needed on top of the annual appropriations for the program to 
achieve the desired level of 500,000 beneficiaries at P4,000 per grantee. 
In addition to this, the scarce resource for the program has made its 
appropriation centered on the student beneficiary and have left little or none at all for 
teachers who are also intended to be provided with the proper training. 
This bill seeks to increase the funding for the GASTPE Program in order to 
address the deficiency in the public education sector. It allocates some P1 billion pesos 
exclusively to teachers to upgrade their training skills for the delivery of quality education 
to students. 
In addition, it seeks to institute a voucher system in place of the current tuition 
fee supplement program to further improve benefits to students enrolled in private 
schools. 
In view of the foregoing, the passage of this measure is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
690 
) 
OHICI:.· .. 
) 
) 
'\0 
JUL -7 P3 :12 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR AN EXPANDED VOUCHER SYSTEM IN THE ELEMENTARY 
AND 
SECONDARY 
EDUCATION, 
AMENDING 
FOR 
THE 
PURPOSE 
REPUBLIC ACT NO. 6728, AS AMENDED 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 2 of Republic Act No. 6728, otherwise known as the 
"Government Assistance to Students and Teachers in Private Education Act", as 
amended, is hereby further amended to read as follows: 
"SEC 2. Declaration of Policy. It is a declared policy 
of the state in conformity with the mandate of the 
Constitution, to promote and make quality education 
accessible to all Filipino citizens. 
The State also hereby 
recognizes the complementary roles of public and private 
educational institutions in the educational system and the 
invaluable contribution that the private schools have made 
and will make to education. For these purposes, the State 
shall provide the mechanisms to improve quality in private 
education, recognizing in the process the government's 
responsibility to provide basic elementary and secondary 
education, 
post 
secondary 
vocational 
and 
technical 
education and higher education as having priority over its 
other functions. 
"Elementary education is the first six (6) years of 
basic education, excluding pre-school and grade seven, the 
completion of which is attested by a certificate issued by or 
with permiSSion of the Department of Education, [,Culture 
and Sports], Secondary education is the next four (4) years 
of basic education, the completion of which is attested by a 
high school diploma issued by or with permission of the 
Department of Education [, Culture and Sports]. 
"Post-secondary education maybe education and 
training in non-degree vocational and technical courses 
offered 
in 
post-secondary 
vocational 
and 
technical 
institutions or education in degree courses offered by higher 
educational institutions, the completion of which are attested 


by a certificate or diploma issued by or with permission of 
the Technical Education and Skills Development Authority 
(TESDA) or the "Commission on Higher Education" (CHED) 
respectively. 
SEC. 2. 
Section 3 of Republic Act No. 6728, as amended, is 
hereby further amended to read as follows: 
"SEC 3. Criteria for Assistance. The programs for 
assistance shall be based on a set of criteria which include 
among others, tuition AND OTHER fees charged by the 
schools, the socio-economic needs of each region giving 
priority to the [the Social Reform Agenda (SRA) provinces] 
THE 
POOREST 
REGIONS, 
PROVINCES 
OR 
MUNICIPALITIES overall performance of the schools, the 
academic qualifications and the financial needs of the 
schools, as well as the geographic spread and size of 
student ENROLLMENT. 
"In addition to the foregoing criteria, within which such 
reasonable time as the respective State Assistance Council 
may determine, 
student grantees 
under the 
Private 
Education Student Financial Assistance Program 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 family income is [not more than Seventy-two 
thousand pesos (P72,OOO.OO) or such amounts as may be 
determined 
by 
the 
respective 
councils, 
as 
defined 
hereinafter] 
BELOW 
THE 
POVERTY 
THRESHOLD 
INCOME 
LEVEL 
IN 
THEIR 
RESPECTIVE 
REGION, 
PROVINCE, OR MUNICIPALITY AS MAYBE DETERMINED 
BY THE APPROPRIATE GOVERNMENT AGENCY, OR IN 
THE ABSENCE 
OF 
SUCH 
DATA, 
THE 
NATIONAL 
POVERTY THRESHOLD INCOME LEVEL AS MAYBE 
DETERMINED 
BY 
THE 
NATIONAL 
ECONOMIC 
DEVELOPMENT AUTHORITY. 
"For purposes of this Act, programs of assistance to 
students and teachers of private post-secondary vocational 
and technical institutions and higher educational institutions 
shall likewise be ext ended to students and teachers of 
community colleges in degree and non-degree programs, 
implementation of the program shall encourage students to 
undergo post-secondary vocational and technical and higher 
education courses in the same region where their families 
reside. 
"The programs of assistance under this Act shall be 
extended only to students who are citizens of the 
Philippines. 
"The State Assistance Council, jointly with the 
Department of Education )Dep Ed, [Culture and Sports 


(DECS) and the TESDA shall formulate measurement 
standards for the evaluation of the quality of courses as well 
as the standing and status of the recipient institutions. 
Within five (5) years from the approval of this Act. the 
assistance shall be given to schools: Provided. That The 
present allocation of the tuition fee and other income of the 
schools shall be used at the same proportion and allocation 
as provided by law. 
SEC. 3. Section 4 of Republic Act N. 6728. as amended. is hereby further 
amended to read as follows: 
SEC 4. Forms of Assistance. Assistance to private 
education shall consist of assistance to students [and]. 
assistance to teachers and ASSISTANCE TO SCHOOLS. 
"The following are forms of assistance too students in private 
education: 
"(1) 
Tuition fee supplements for students in private [high] 
ELEMENTARY AND SECONDARY schools. including 
students in vocational and technical courses; 
"(2) 
[High School] Textbook Assistance Fund: Provided. 
That the textbook assistance per student in private 
ELEMENTARY OR SECONDARY [high] schools shall 
be determined by the council and shall not exceed 
what 
students 
in 
public 
ELEMENTARY 
OR 
SECONDARY schools are provided on a per student 
basis [under a comprehensive textbook. program of 
the Secondary Education Development Program 
(SEDP)]: 
Provided. further. That the textbook 
assistance shall be granted only to beneficiaries of 
tuition fee supplements and educational service 
contracting scheme provided in this Act; 
"(3) 
Expansion 
of the 
existing 
Educational 
Service 
Contracting (ESC) Scheme; 
"(4) 
The voucher system of the Private Education Student 
Financial Assistance Program PESFA; 
"(5) 
Scholarship 
grants 
to 
students 
graduation 
as 
valedictorians and salutatorians fro ELEMENTARY 
AND secondary schools; 
"(6) 
Tuition fee supplements to students in private 
colleges and universities; and] 
"(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] 
ELEMENTARY OR SECONDARY schools; and 


"(2) 
College Faculty Development Fund. 
THE FOLLOWING ARE FORMS OF ASSISTANCE TO PRIVATE 
SCHOOLS: 
(1) 
UTILIZATION 
OF 
THEIR 
UNUSED 
CAPACITY 
THROUGH THE EXPANDED EDUCATION SERVICE 
CONTRACTING SCHEME; 
(2) 
SCHOLARSHIPS FOR QUALIFIED ELEMENTARY 
AND SECONDARY TEACHERS ENROLLED IN 
QUALITY GRADUATE PROGRAMS; 
(3) 
PARTICIPATION IN GOVERNMENT FUNDED IN-
SERVICE TRAINING FOR PRIVATE ELEMENTARY 
AND SECONDARY TEACHERS; 
(4) 
ACCESS 
TO 
GOVERNMENT 
FUNDED 
LABORATORY 
FACILITIES 
ESPECIALLY 
FOR 
SCIENCE AND TECHNOLOGY. 
SEC. 4. Section 5 of Republic Act No. 6728, as amended, is hereby 
further amended to read as follows: 
"SEC 5. Tuition Fee Supplements for Students in Private [High] 
ELEMENTARY AND SECONDARY Schools. 
(1) 
Financial Assistance for tuition [for of students in private 
[High] ELEMENTARY AND SECONDARY schools shall be 
provided by the government through a voucher system in the 
following manner: 
"(a) 
For students enrolled in schools charging an 
amount as may be determined by the State 
Assistance Council, the government shall 
provide them with a 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. 
(2) 
Assistance under paragraph (1), subparagraph a) 
shall 
be 
guaranteed 
to 
all 
private 
[high] 
ELEMENTARY 
AND 
SECONDARY 
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 1997-1998: Provided, that The State 
Assistance Council may in 
subsequent years 
determine 
additional 
slots 
and/or 
additional 
participating ELEMENTARY AND SECONDARY 
[high] schools as may be deemed necessary' 


SEC. 5. 
Section 6 of Republic Act No. 6728, as amended, is hereby 
further amended to read as follows: 
"SEC 6. [High School] Textbook Assistance Fund. There 
shall be established in the Department of Education [,Culture and 
Sports (DECS), a [High School] Textbook Assistance Fund, so 
that assistance on a per student basis shall be given to students 
enrolled in private schools exclusively for the purchase of 
ELEMENTARY OR SECONDARY [high] school textbooks, [in 
support of the implementation of the Secondary Education 
Development Program]:Provided, That the textbook assistance 
per student in private ELENETARY OR SECONDARY [high] 
schools shall be determined by the council and shall not exceed 
what students in public ELEMENTARY OR SECONDARY [high] 
schools are provided on a per student basis,: Provided, further, 
That the textbook assistance shall be granted only to beneficiaries 
of tuition fee supplements and educational service contracting 
scheme provided in this Act. 
SEC. 6. Section 7 of Republic Act No. 672, as amended, is hereby further 
amended to read as follows: 
"SEC 7. Expansion of the Existing Educational Service 
Contracting (ESC) Scheme. 
"(a) 
The Department of Education [,Culture and Sports (DECS) 
shall continue to enter into contracts with private schools 
whereby the government shall shoulder the tuition and 
other fees of ELEMENTARY AND SECONDARY [high] 
school students who shall enroll in private [high] schools 
under this program. 
PRIORITY SHALL BE GIVEN TO 
PRIVATE SCHOOLS IN COMMUNITIES WHERE THE 
PUBLIC SCHOOLS CAN NO LONGER ACCOMMODATE 
THE STUDENTS DUE TO THE INCREASE IN STUDENT 
POPULATION, who shall enroll in private [high] schools 
under this program. 
"(b) 
The Department shall also enter into contracts with private 
schools in communities where there are no public 
ELEMENTARY OR SECONDARY [high] schools, in which 
case the Department shall shoulder the tuition and other 
fees of students who shall enroll in said private school. 
"(c) 
The amount of assistance to be given by the government 
under this section shall not exceed that determined as the 
per student cost in public [high] ELEMENTARY AND 
SECONDARY 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 AND THE NUMBER OF SLOTS 
SHALL BE DETERMINED BY THE STATE ASSISTANCE 
COUNCIL AND ALLOCATED [shall be allocated and 
distributed] among the sixteen (16) regions in proportion to 


the total population as well as the [high] ELEMENTARY 
AND SECONDARY school age population for the first 
school year; Provided, That starting school year 1998, an 
equalization scheme shall be implemented by the State 
Assistance Council. 
"(f) 
The amount of assistance to private [high] ELEMENTARY 
AND SECONDARY 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 assistance for school year 
1997-1998; Provided, That the State Assistance Council 
may, in subsequent years determine additional slots and/or 
additional participating private [high] ELEMENTARY AND 
SECONDARY schools as may be deemed necessary. 
SEC. 7. 
Section 8 of Republic Act No. 6728 as amended, is hereby 
further amended to read as follows: 
"SEC 8. Assistance to College Freshmen. - (a) The Voucher 
System of Private Education Student Financial Assistance (PESFA) 
Program. The existing Private Education Student Financial 
Assistance (PESFA) Program which covers degree and non-degree 
vocational/technical courses shall be expanded so that all qualified 
enrolling first year students can benefit from a scholarship, plus an 
allowance. Such financial assistance shall be granted to deserving 
underprivileged students, who shall be selected on the basis of 
family income, geographic spread and results of competitive 
examinations to be given by the CHED for degree course and the 
TESDA for 
non-degree 
vocational/technical 
courses 
in 
all 
secondary schools in coordination with the [DECS] DepEd. The 
program shall be equitably allocated to provinces and cities in 
accordance with regional and national plans to priority courses as 
determined by the CHED and the TESDA. 
"For purposes of this Act, an underprivileged stUdent shall 
refer to a student whose gross income, if any, and that of the 
combined annual gross income of his/her parents do not exceed 
[Seventy-two thousand 
pesos 
(P72,OOO.OO) THE 
POVERTY 
THRESHOLD INCOME LEVEL IN THEIR RESPECTIVE REGION, 
PROVINCE, OR MUNICIPALITY AS MAYBE DETERMINED BY 
THE APPROPRIATE GOVERNMENT AGENCY, OR IN THE 
ABSENCE 
OF 
SUCH 
DATA, THE 
NATIONAL 
POVERTY 
THRESHOLD INCOME LEVEL AS MAYBE DETERMINED BY 
THE NATIONAL ECONOMIC DEVELOPMENT AUTHORITY. 
SEC. 7. Section 12 of Republic Act No. 6728, as amended, is hereby 
further to read as follows: 
"SEC 12. 
In Service Training Fund (Inset Fund). For the 
purpose improving the quality of teaching in private secondary 
. education, there is hereby established 
in the Department of 
Education, [Culture and Sports] an Inset Fund to provide for the 
upgrading of knowledge and teaching competencies in critical 


subject areas and for the modemization of teaching techniques and 
strategies, including training in the use of computers and of other 
multi-media 
educational 
technologies 
to 
assist 
instruction: 
Provided, That the Inset Fund shall be available only to qualified 
licensed teachers 
in 
participating 
private high 
schools as 
determined by the State Assistance Council: 
Provided, further, 
That the amount of Inset Fund available to private ELEMENTARY 
AND secondary education shall not exceed that available to public 
ELEMENTARY AND SECONDARY education as per capita basis. 
SEC. 9. Section 14 of Republic Act No. 6728, as amended, is hereby 
further amended to read as follows: 
"SEC 14. 
Teacher's Salary Subsidy Fund. 
A 
Teacher's Salary Fund is hereby established in the [DECS] 
DepEd to grant government subsidy to teachers in private 
[high] 
ELEMENTARY 
AND 
SECONDARY 
schools 
participating in the programs of assistance provided in this 
Act: Provided, That the total monthly salary which includes 
the 
subsidy to 
be 
received 
by such 
private [high] 
ELEMENTARY AND SECONDARY school teachers shall 
not be more than eight percent (80%) of the salary of his 
counterpart in the public sector. Provided, further, That the 
amount of monthly subsidy shall not exceed exceed the 
amount of any monthly salary increase that teachers in 
public [high] ELEMENTARY AND SECONDARY schools 
shall after the effectivity of this Act hereinafter receive: 
Provided, further, That private [high] ELEMENTARY AND 
SECONDARY school teachers qualified to receive subsidy 
under this Act are duly licensed by the Professional 
Regulation Commission: 
Provided, further, That the 
government shall provide them with a voucher for the salary 
subsidy which shall be reimbursed directly to the teachers 
within sixty (60) days after the close of the school year upon 
submission of proof of qualification and actual teaching 
service in a participating private [high] ELEMENTARY OR 
SECONDARY school; Provided, further, That the present 
allocation out of increases from tuition and other income 
shall be maintained; 
Provided, finally, That in case of 
insufficiency of funds, priority shall be given to married 
teachers supporting a family. 
SEC. 10. Section 15 of Republic Act No. 6728, as amended, is hereby 
further amended to read as follows: 
"SEC 
15. 
Program Administration Rules and 
Regulations. The State assistance Council 
shall be 
responsible for policy guidance and direction, monitoring and 
evaluation 
of new 
and 
existing 
programs, 
and 
the 
promulgation of the rules and regulations, while the 
Department of Education [Culture and Sports], the TESDA 
and the CHED shall be responsible for the day to day 
administration and program implementation for the programs 
of assistance to private ELEMENTARY AND secondary 


education, 
post 
secondary 
vocational 
and 
technical 
education and higher education, respectively. 
Likewise, it 
may engage the services and support of any qualified 
government or private entity SUCH AS THE FUND FOR 
ASSISTANCE TO PRIVATE EDUCATION (FAPE) AS A 
PERMANENT SECRETARIAT for its implementation. 
"The State Assistance Council, hereinafter known as 
the Council, shall be headed by the Secretary of Education, 
[Culture and Sports] as chairperson, the chairperson of the 
CHED and the Director General of the TESDA as co-
chairpersons, 
with 
representatives 
from 
the 
National 
Economic Development Authority, the Department of Budget 
and 
Management, 
the 
Department 
of Science 
and 
Technology, and 
representatives from duly organized 
nationwide associations of teachers, students, parents and' 
school 
administrators 
concerned 
with 
ELEMENTARY, 
secondary, 
post-secondary 
vocational 
and 
technical 
education and higher education as members. 
The last 
FOUR (4) three (3) members shall be appointed by the 
Council upon the recommendation of their respective sectors 
for a term of THREE (3) [one (1) school year subject to 
reappointment [for a maximum term of four (4) school years] 
UPON THE RECOMMENDATION OF THEIR RESPECTIVE 
SECTORS. A representative each from the Committee on 
Education of both Houses of Congress shall be designated 
resource persons to the Council. 
"the Council shall meet, from time to time, as the 
need arises, to assess the effectivity of the programs and to 
ensure that the ELEMENTARY AND secondary schools, 
post-secondary vocational and technical institutions and 
higher educational institutions may continue to enroll 
students and teachers/faculty as recipients of government 
assistance under this Act. 
SEC. 11. 
Section of Republic Act No. 6728, as amended, is hereby 
further amended to read s follows; 
"SEC 16. 
Appropriations. 
The amount needed to 
implement these programs shall be provided for in the 
Annual General Appropriations Act [for] BEGINNING the 
year [1998] 2004. 
The ANNUAL 
appropriations of [One 
billion pesos (P1,000,000,000.00) already appropriated 
under the General Appropriations Act of 1998 shall be used 
for this purpose]. The DepEd TO CARRY OUT THE 
PROVISIONSOF THIS ACT SHALL BE INCREASED TO 
THREE BILLION PESOS (P3,000,000,000.00) OF WHICH 
THE AMOUNT OF ONE BILLION SHALL BE ALLOCATED 
AS ASSISTANCE TO ELEMENTARY AND SECONDARY 
TEACHERS 
OF 
THE 
PARTICIPATING 
SCHOOLS. 
LIKEWISE, TO DO THE SAME, THE CHED AND TESDA 
APPROPRIATIONS SHALL BE INCREASED TO FIVE 
MILLION (P5,000,000,000.00).AND TWO HUNDRED FIFTY 
MILLION (P250,000,000,000) RESPECTIVELY. 


"All funds appropriated for this purpose shall be 
constituted as a trust fund to be administered by the State 
Assistance 
Fund, 
which 
shall 
be 
SEPARATE 
AND 
DISTINCT FROM THE REGULAR APPROPRIATIONS OF 
THE DepED AND SHALL BE RELEASED BY THE DepEd, 
CHED AND TESDA DIRECTLY TO THEIR RESPECTIVE 
PARTICIPATING SCHOOLS [directly and automatically 
released to the different regional offices of the DECSl. 
SEC. 12. Section 17 of Republic Act No. 6728, as amended, is hereby 
further amended to read as follows: 
"SEC 17. Penalties. In case of violations of the provisions 
of this Act or the rules and regulations promulgated pursuant 
thereto by an institution, the Department of Education, [Culture and 
Sports], the TESDA and the CHED, upon the recommendation of 
the Council, may bar the institution from participating in or 
benefiting from the programs of this Act, and from other programs 
of the Department, without prejudice to administrative and criminal 
charges as maybe filed against the school and/or its responsible 
officers under existing laws. 
SEC. 13. 
Repealing Clause. 
All laws, decrees and such letters of 
instructions, rules and regulations or parts thereof which are inconsistent with this 
Act are h,ereby repealed or modified accordingly. 
SEC. 14. Separability Clause. If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of other 
provisions not affected thereby. 
SEC. 15. Effectivity Clause. This Act shall take effect immediately upon 
its publication in two newspapers of general circulation. 
Approved,