Gross domestic product (GDP in U.S.$)

$118 billion (2009)

GDP per capita (U.S.$) $1,362.80 (2009)Monetary unit 1 Philippine peso (P), consisting of

100 centavosNumber of workers 38,370,577 (2009)Unemployment rate 10.9 percent (2006)

Economy of Philippines

OTHER DEPED PROGRAMS RECEIVED THE FOLLOWING BUDGETS:

• The Abot-Alarm Program which will benefit 1 million out-of-school youths-₱1.97 billion.

• The Alternative Delivery Mode Projector e-IMPACT, which will offer children in difficult or different circumstances alternative education options-₱575.9 million.

• The Basic Education Madrasah Program which will benefits Filipino Muslim students-₱708.7 million

• The Redesigned Technical-Vocational High School Program, a vocational educational program that will be part of high school curriculum-₱236.4 mi8llion.

• Study Grant for Poverty Aleviation, which will be under the SUC’S budgets and will aid ₱40, 453 Pantawid Pamilyang PilipinoProgram(4P’s) beneficiaries-₱2.5 billion.

• Students Financial ssistance Program, which is under the Commision on Hiher Education (CHED) and which will Benefit 54,208 students-₱76.3 million.

LAWS ABOUT EDUCATION>In the Philippines, education is a public or state function. Public Elementary and Secondary Education is supported by the national government, the former as mandated by the Constitution (1987), which states 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”, and the latter by Republic Act No. 6655 (Free Secondary Education Act). Specific provisions on education upon which all decrees, policies, regulations, and rules on education are based, are provided in the Constitution. These are expressly stated by way of the constitutional mandate, Presidential decree, and other legal provisions.

• The objectives of formal education at the elementary, secondary, and tertiary levels as well as those of non-formal education are specified in the Education Act of 1982. Republic Act No. 232 otherwise known as the “Education Act of 1982” is a an act which calls for the establishment of national schools and the conversion of schools from elementary to national secondary schools or from secondary to national secondary or tertiary schools.

• The Republic Act No. 6728 deals with private education, notably by setting common minimum physical facilities and curricular requirements for all schools and by liberalizing the subject content of values education.                   

• The creation of the Commission on Higher Education by Republic Act No. 7722 and of the Technical Education and Skills Development Authority separated these entities from the Department of Education where they originally belonged.                   

• The Philippine Teachers Professionalization Act, Republic Act No. 7836, was issued in 1994. The Literacy Co-ordination Council, an interagency body administratively attached to DECS, was created by Republic Act No. 7165 to carry out State policy to eradicate illiteracy. The House Bill No. 1875 entitled “An Act to Strengthen Teacher Education in the Philippines by Establishing Lead Teacher Training Institutions, Appropriating Funds Therefore and for Other Purposes” deals with the improvement of teacher education.                  

• The Republic Act No. 7796, otherwise known as the “Technical Education and Skills Development Act of 1994”, aims to encourage the full participation of and mobilize the industry, labor, local government units and technical-vocational education and training (TVET) institutions in the skills development of the country's human resources.                       

The Long-Term Higher Education Development Plan (LTHEDP) is a government program that aims to attain quality, accessible, and modern higher education in the Philippines. LTHEDP 1996-2005 by the Commission on Higher Education (CHED) aims to: >generate and diffuse knowledge in the broad range of disciplines which are “relevant and responsive to the dynamically changing domestic and international environment.” >encourage Higher Education Institutions (HEIs) to improve higher education curricula as well as undertake reforms to cope with emerging needs and demands of the industry. The Higher Education Modernization Act of 1997, also known as “HEMA or Republic Act No. 8292”, is a law that provides the uniform composition and powers of governing boards, and the manner of appointment and term of office of the president of chartered state universities and colleges. It is an educational measure authored by Senator Edgardo Angara.

• In August 2001, Republic Act No. 9155, otherwise called the “Governance of Basic Education Act”, was passed transforming the name of the Department of Education, Culture and Sports (DECS) to the Department of Education (DepEd) and redefining the role of field offices (regional offices, division offices, district offices and schools).

• This Act provides the overall framework for: (i) school heads empowerment by strengthening their leadership

roles; and (ii) school-based management within the context of transparency

and local accountability. The goal of basic education is to provide the school age population and young adults with skills, knowledge, and values to become caring, self-reliant, productive and patriotic citizens.

• House Bill 4598, also known as the Tuition Fee Rationalization Act, seeks to regulate the tuition fee of all colleges, universities, and higher education institutions in the Philippines. It was filed by San Juan representative Joseph Victor Ejercito to the House of Representatives in September 2011.

• In response to the currently deregulated tuition scheme in the Philippines resulting in rampant tuition increase amongst colleges and universities, the bill will establish a nation’s Tuition Fee Rationalization Council (TFRC) and regional TFRCs composed of the chairpersons of the Commission on Higher Education, Technical Education and Skills Development Authority, House Committee on Higher and Technical Education, Senate Committee on Education, and representatives from the National Economic Development Authority, Philippine Association of State Colleges and Universities as well as representatives students, student councils, campus publications, faculty associations, associations of higher education institutions and other sectors. The TFRC is mandated to approve or reject tuition rate adjustments and to investigate violations of the law.

FINANCING EDUCATION IN THE PHILIPPINES

EDUCATIONAL SYTEMDepEd Order No. 12,s. 2014

Implementing Guidelines On The Direct Release of Maintenance And Other

Operating Expenses (MOOE) Allocations of

Schools To The Respective Implementing Units

Legal Bases

• a. Department of Budget and Management (DBM) and

• DepEd Joint Circular No. 2004-1 dated January 01, 2004 , entitled “Guidelines on the Direct Release of Funds to DepEd –Regional Offices and Implementing Units”

Legal Bases

• B. Section 10, R.A. No.9155 (Governance of Basic Education Act of 2001)- which provides that the appropriations intended for regional and field offices (elementary / secondary schools and schools division offices) are to be allocated directly and released immediately by the DBM to the said offices.

Implementation Requirements

• a. The Implementing Units (IUs) are capable of administering their own funds since they have position items assigned to handle cashiering, bookkeeping functions , whether on a permanent or temporary basis.

Implementation Requirements

• b. The DBM has assigned agency codes to the said IUs, hence they are authorized to open Modified Disbursement Scheme (MDS)Sub-Accounts in government depository banks and the cash allocations intended for the aforementioned IUs are directly issued by the DBM to their respective MDS Sub-Accounts.

Implementation Requirements

• C. The IUs are required to maintain sets of books of accounts

• D. The MDS Sub- Accounts of SDOs shall cover transactions of the SDO (Proper),ESs and SSs without financial staff.

Responsibilities of Implementing Units

The DepEd – Central Office shall:

• a.i. Provide the Regional and Schools Division Offices with a matrix showing the MOOE allocation of each public ES out of the appropriations authorized for MOOE for each SDO for Elementary Education under operations of Schools as reflected in the GAA

• a.ii. Post on its website the allocations of ESs as mentioned in Item 3. a.i.

EXAMPLE:General Appropriations Act Fiscal

Year 2011Name of School

Personal Services

MOOE Total

Cavite NHS 2,329,000 754,000 3,083,000

Buyuan NHS 1,150,000 122,000 1,272,000

The Schools Division Office shall:

• b.i. inform in writing the heads of Ess and SSs without financial staff of their annual MOOE allocation;

• b.ii. Ensure that, by the end of the year , the MOOE allocations of ESs and non-implementing SSs have been fully downloaded to the respective heads of the said non- IUs through cash advance using the replenishment method.

The Schools Division Office shall:• The SDOs are prohibited from undertaking

centralized procurement of any good or service out of school MOOE intended for distribution to schools in kind.

• In, extreme cases , however, the SDOs procure items using school MOOE , provided that they submit a report to the office of the Secretary , through the office of the Undersecretary for Finance and Administration , explaining and presenting:

The Schools Division Office shall:

• A. the need for such items• B. the nature type , quantity and price of the

items listed by the receiving school, and• C. the estimated price difference between the

division and school procurement , and the name of the supplier , including the mode of procurement used.

While the report within 30 days after the conduct of the procurement , for audit and monitoring purposes

The Schools Division Office shall:

• b.iii Submit to the office of the Secretary , through the Accounting Division- Financial Management Service (FMS) , monthly reports on the status of downloading of school MOOE and its utilization.

C. The ES and SS without financial staff shall:

c.i Apply for bonding with the Bureau of Treasury , Fidelity Bond Division;c.Ii Draw cash advance from their supervising/ directing SDO for their MOOE requirements;

C. The ES and SS without financial staff shall:

• c.iii. Pursuant to Item H.I.I of the Manual on Simplified Accounting Guidelines and Procedures for the Use of Non-Implementing Units / Schools , Version 2008, submit to the SDO on or before the 5th day of the following month the original copy of the Cash Disbursement Register (CDR), the paid Disbursement Vouchers and all supporting documents which shall serve as liquidation of the cash advance granted. Any remaining cash advance at the end of the year must be liquidated in full and unexpended balances refunded; and

C. The ES and SS without financial staff shall:

• c.iv. Disburse funds in accordance with the existing budgeting , accounting , procurement , and auditing rules and regulations.

Uses of School MOOE

Uses of School MOOE

• To fund activities as identified in the approved School Improvement Plan (SIP) , for implementation in the current year , and as specifically determined in the Annual Implementing Plan of the school;

• To support expenses for training activities that are selected or designed based on the most critical needs to improve learning outcomes in the school

Uses of School MOOE

• To pay for expenses for utilities and communications 9 e.g. electric , water and telephone expenses);

• To procure school supplies necessary in classroom teaching;

• To finance expenses pertaining to graduation rites, not to exceed a cost of PhP 250 per graduating student;

Uses of School MOOE• To pay wages of janitorial and security services;

and • To fund minor school repairs

Notwithstanding the above , in no case shall the school MOOE be used for the procurement of textbooks and other instructional materials as well as school furniture and equipment , even if these expenditures are contained in the SIP. In this regard , “instructional material” include publications, periodicals and review materials.

Penalty Clause

• The SDO and school heads who violate any provision of this Order shall be dealt with administratively , pursuant to DepEd Order No. 49, s. 2006, otherwise known as the “ Revised Rules of Procedure of the Department of Education in administrative Cases.

FINANCIAL SUPPORT OF THE PHILIPPINE GOVERNMENT IN PHIL. EDUC. SYTEM

• From the Department of Budget and Management

• As part of the Administration’s vow for greater inclusive development by investing in the Filipino people, the Department of Education (DepEd) received P367.1 billion from the P2.606-trillion 2015 National Budget to become the top gainer among government agencies.

• The budget increase of 18.6 percent– as compared to P309.5 billion in 2014—will support the National Government’s thrust for improving people’s access to quality education, including the successful implementation of the K to 12 Program.

• Of the DepEd’s total budget, P53.9 billion has been allotted for Basic Education Facilities to cover the construction of 31,728 classrooms as well as the repair of 9,500 more. The amount will also cover the construction of 13,586 water and sanitation facilities, 455 technical-vocational laboratories, and the procurement of 1.3 million seats.

• For the coming year, DepEd will also hire more teachers with an allocation of P10.0 billion to create 39,066 new teaching and 1,500 non-teaching positions. On the other hand, the agency will allocate P3.5 billion to purchase and distribute 70.5 million textbooks and instructional materials to schools nationwide. This is more than double last year’s allocation of P1.7 billion.

• Lastly, improving the country’s state universities and colleges (SUCs) is an important part of the Administration’s program to modernize the public higher education system. As such, the SUCs will get a total of P44.4 billion or 16.8 percent higher than their 2014 budget of P38.0 billion.

FINANCING PRESENT PHILIPPINE EDUCATION SYSTEM

COMMISSION ON HIGHER EDUCATION

• Some independent colleges offer a limited number of graduate programs, but usually their primary mission is to provide undergraduate education.

• Community colleges offer two-year programs of general education or vocational education.

• To save money and to be able to quickly respond to changing trends in education, colleges and universities increasingly employ large numbers of part-time teachers who do not have faculty rank or tenure.

• Analysts estimate that nearly 30 percent of the faculty at four-year colleges and universities teach part-time.

• At community colleges, part-time teachers make up as much as 65 percent of the faculty. Part-time faculty often add special expertise to their teaching if they are practitioners in highly specialized fields such as medicine or law. However, many part-time faculty cannot find full-time teaching jobs, despite being qualified for those positions.

• Part-time faculty usually receive lower salaries than faculty with full-time positions, forcing many to teach at several colleges or universities in order to earn an adequate income.

• In addition, some universities employ large numbers of teaching assistants, who teach undergraduate courses while completing their doctoral degree programs.

• Critics believe that reliance on part-time faculty and teaching assistants decreases the quality of instruction. They argue that part-time faculty and teaching assistants generally lack the teaching experience and commitment to the institution that full-time faculty bring.

*Students may apply for and receive financial aid to help pay tuition and other costs of attending college. *The chief sources of financial aid are federal programs, state grant programs, private grants, and institutional sources at the college or university. *Aid may be either a grant based on financial need, a merit-based financial award given to the student, or a loan that the student must repay with interest in the future.

• In the past, most students received financial aid in the form of a grant. However, the increases in tuition rates since the 1980s have coincided with a decrease in the funds available for public or private grants.

• More of the financial aid that most students now receive comes in the form of a loan rather than a grant or an award.

• For example, in the late 1980s the average grant was 46 percent of a typical student’s total aid package, while the average federal loan was 52 percent.

• By 1998 the grant size had fallen to 40 percent of the typical total, while loan size had increased to 58 percent. In 1997 borrowers who attended public four-year colleges had accumulated an average of $13,000 in debts. Those who went to private colleges averaged $17,500 in debts. Borrowers in graduate school had an average debt of $24,500, and those who went to professional school averaged $48,500.

PREPARED BY:

GRACE B. VERIDIANO MSAgED