The document summarizes how school financing is administered in the Philippines. It outlines the various sources of funding for different levels of education, including taxes, fees, and government appropriations. It also describes the procedures followed by local, provincial, and national governments in budgeting, approving, and expending funds for education. Key responsibilities include the national government primarily supporting elementary education, and jointly supporting secondary education with local governments.

1. THE ADMINISTRATION
OF SCHOOL FINANCING
Ruel G. Manzano
Reporter

2. The State Responsibility
for the Support of Education
• The welfare of the state depends largely upon the
education of its citizens.
• Our leaders and framers of the Constitution who
have realized the importance of education saw to it
that the Magna Carta contain a provision that the
state should establish and maintain a complete and
adequate system of education and provide at least a
primary education for all children of school age.
• Congress has consistently given approximately one-third
of the entire budget of the country to education.

3. Sources of School Revenues
• In the Philippines, there is no specific education tax.
• 3 different levels of government: (1) the National, (2) Provincial and
Municipal, and (3) collect taxes and appropriate them according to law.
• Sources of government income for education:
1. Taxes imposed by law for the support of the government such as the
real-property tax, specific tax, and import and export taxes.
2. Tuition fees imposed on students in public high schools, vocational
schools, regional normal schools, and chartered colleges and
universities such as the University of the Philippines.
3. Matriculation fees.
4. Rental for lease of school sites and sales of school products.
5. Land grants and donations.
6. Voluntary contributions.
7. Special fees.

4. Support for Elementary Education
• Before the enactment of Commonwealth Act No. 586 (Educational Act
of 1940), the elementary schools were jointly supported by the
National and the local government.
• Educational Act of 1940:
1. Support of all elementary schools in municipalities and municipal
districts saved the situation for the poor communities.
2. Abolished the share of municipalities and municipal districts in the
internal revenue collections, percentage taxes and income tax to
the general fund which may be drawn for school purposes.
3. The law forbids the collection of tuition fees in the intermediate
grades although it is permits matriculation fees not exceeding two
pesos for each pupil enrolled in intermediate grades. 60% spent
for the purchase of library books and equipment and 40% for
financing athletic activities in intermediate grades.

5. Support for Public Secondary Schools
• The financial support for the maintenance and operation of public ordinary
schools is provided for by the provincial and city governments.
• The source of provincial income are the following:
1. Internal revenue allotments from the national government;
2. Share from local taxes;
3. Fees from services rendered; and
4. Income from miscellaneous receipts.
• The major portion of the support for secondary schools comes from the tuition
and matriculation fees impose by the Provincial Board on all high school
students.
• Public secondary schools charge a tuition fee of between 80.00 and 150.00 a
year.
• Through the enactment of Republic Act No. 3478, the National Government
has been granting annual national aid to general provincial and municipal high
schools .The law authorized 10 million for the purpose. This aid is primarily
intended for salary adjustments of teachers and other secondary school
personnel.

6. Support for Public Secondary Schools
• Voluntary contributions and donations by private individuals constitute additional sources
of income.
• In the case of municipal high schools, they are also supported from students’ tuition and
matriculation fees and general fund transfer from the municipality where they are
located.
• Former superintendent of schools Dr. Pedro T. Orata has advocated the opening of
barrio high schools.
• According to Dr. Orata, there are as of July 1967 about 450 barrio high schools.
• Sources of funds, the Bureau of Public Schools in its Memorandum No. 86, issued on
August 1, 1966, states as follows:
1. Tuition fee to be charged should not be less than 80.00 a year.
2. 50% of the 10% real estates tax proceeds allotted to barrios in accordance with Revised
Barrio Charter should be set aside and used for the improvement of instruction in the
barrio high schools.
3. All feeder barrios should share the expenses for the improvement of instruction.
4. All resolutions of the barrios councils regarding the funding of barrio high schools should
be approved by the Municipal Council concerned.

7. Support of Public Schools in Chartered Cities
• Supported from tuition fees and city funds.
• Another source of income is the national aid.
• In R.A. No. 3478- the National Aid was specifically for provincial and
municipal high schools but the law was amended by R.A. No. 4128 so
as to include all city high schools. The Aid is also primarily for salary
adjustments of teachers.
Support of Vocational High Schools
• Vocational schools located in provinces usually come under two
categories- the provincial trade school and the provincial agricultural
school.
• All vocational schools must be nationalized since the enactment of
R.A. No. 948 in 1954 the sources of income now are national
contribution, tuition and other fees an income from school products.

8. Support of Regional Normal Schools
• Regional normal schools are also national like the vocational schools.
• Sources of income are national contribution and tuition fees.
• Regional normal schools are therefore supported jointly by the students
themselves and by the national, provincial and municipal governments.
Support of Special Schools
• The Philippine Nautical School in Pasay City which offers courses for
employment as merchant marine officers is supported entirely by the National
Government. The School for Deaf and Blind under the Bureau of Public
Schools is supported almost entirely by the National Government with
occasionally aids from the Philippine Charity Sweepstakes.
Support of Chattered Government Colleges and Universities
• Comes from the tuition and matriculation fees of students and from national
funds appropriated annually by Congress.
• Special aids for the construction, repair and improvement of buildings are
given in special legislation or taken from the pork barrel fund.

9. Procedures Followed in Financing Education by the
Municipal, City, Provincial, and National Governments
• There is no special education tax fixed by law in the Philippines.
• Municipalities, municipal districts and cities do not have to provide for
elementary education by virtue of Commonwealth Act No. 586 which placed
the responsibility of support for elementary education on the National
Government.
• Local entities may set aside sums from their general fund income if they can
afford, but it is optional.
• The National Government has assumed the greater burden of support for:
– Elementary schools in the whole country
– Regional normal schools, vocational schools, specials schools and
partially even provincial secondary schools.
– Chartered colleges and universities
• The construction and repair and improvement of school buildings remain the
legal responsibilities of provinces, municipalities and cities

10. •System Used by the local Governments
1
• A budget is prepared by the treasurer
2
• Proposed budget i signed by all officials concerned
3
• Submitted to the municipal council
4
• If approved, the resolution of the local government is
signed by the chairman of the councila and local executive
5
• If the budget approves,it is becomes legal and valid,
otherwise it does not become operative
.

11. •Procedure followed by the National Government
1
• The Division superintendents asked to submit an estimate of the needs.
2
• The Division of School Finance of the General Office of the Bureau of Public Schools
then consolidates reports and submit to the Secretary of Education
3
• The Sec. of Education submits the propoal to the Budget Commission under the Office of
the Presidents of the Philippines.
4
• In January, each year, the President submits the budget for the entire government of
Congress for approval.
5
• The directors of the Bureaus and thier Secretaries are summoned by the appropriation
committees of the House and Senate for hearing on the justification of thier proposals.
6
• After Congress has acted on the National Budget, the President signs it and become
operative
7
• The enire budget has finally approved by the Congress and the President is printed for
the distribution to all offices concerned.

12. •Procedure in the Expenditure of Funds
1
• The Budget Office which is the disbursing agency notifies the Offices concerned of the
amounts availabale for release for the first quarter (July to September)
2
• The Budget Commission releases the first allotment based on the approved national
budget.
3
• The Director of Public Schools notifies the Division Superintendent of Schools of the
allotment for his division by quarter.
4
• The salaries forr the national teachers are paid by checks through I.B.M. The
Superintendent is rewuired to submit to the General Office his program of expenditure
5
• The report of expenditure submitted from the field is forwarded by the Director to the
Secretary of Education.
6
• These requisitions are then examined and scrutinized by the Office of teh Secretary of
Education.