Pilot Testing of the Preparation of Local Government Unit

Devolution Transition Plans (LGU DTPs)

22-23 July 2021

Proposed Guidelines on the

Formulation of
LGU Devolution Transition Plans

DIRECTOR ANNA LIZA F. BONAGUA, CESO III

Bureau of Local Government Development
Department of the Interior and Local Government
 Role of LGUs under EO No. 138, s. 2021

1. Prepare their Devolution Transition Plans in close coordination

with NGAs concerned
2. Formulate their Capacity Development Agenda based on the
assessment of their respective capacities guided by strategy for LGU
capacity development
3. Develop communications plan and strategies
4. Ensure integration and coordination of local PPAs on the
devolved functions with national goals, standards and strategies
Local Government Units 5. Ensure funding requirements for implementation of the LGU DTP,
LGU CapDev Agenda, and LGU Communications Plan and Strategy
are prioritized in their respective Annual Investment Programs (AIPs)
and Annual Budgets (DBM LBM 82, June 14, 2021)
Outline of the Guidelines
1. Rationale
2. Guiding Principles
3. LGU Devolution Transition Plans
4. Preparation of the LGU Devolution Transition Plan
5. Contents of the LGU Devolution Transition Plan
6. LGU DTP Implementation and Support to Transition
7. LGU Timeline and Submission
8. Roles and Responsibilities of the DILG, DBM, and Other NGAs
9. Annexes
10. Separability
11. Effectivity
 Rationale/Legal Framework
• Republic Act No. 7160 or the Local Government Code of 1991
Sec. 2 (a) “… the State shall provide for a more responsive and accountable local government structure instituted
through a system of decentralization whereby local government units shall be given more powers, authority,
responsibilities, and resources.”
Sec. 3 (d) “ … the vesting of duty, responsibility, and accountability in local government units shall be accompanied
with provision for reasonably adequate resources to discharge their powers and effectively carry out their
functions…”

• Supreme Court Ruling on the Mandanas-Garcia petitions clarified the basis for the
computation of local government shares and ordered NG to include all collections of national taxes n the computation
of the base amount of the just share of LGUs

• EO No. 138, s. 2021 encourages LGUs to be primarily and ultimately responsible and accountable for the
provision of all basic services and facilities fully devolved to them, in accordance with the minimum standards for
service delivery to be prescribed by the NG
Guiding Principles
• Local governments are primarily responsible for providing direct service delivery to
their constituencies and will assume greater responsibility and accountability in
ensuring the quality of devolved services.

• Local governments are expected to strengthen their capacity to exercise stewardship of

their increased fiscal resources; enhance their organizational capability for service
delivery; and institute transparent, accountable, and participatory mechanisms to
better achieve national and local development objectives.

• Local governments are encouraged to establish robust partnership with NGAs, private
sector, NGOs, CSOs, POs, and academic institutions as providers of technical expertise and
information, innovations, and governance models on service delivery.
 LGU Devolution Transition Plans
All provinces, cities, municipalities, and barangays shall prepare
their DTPs.

1. LGU’s roadmap for a strategic perspective, systematic, and

coherent actions towards their full assumption of devolved functions
and services starting in FY 2022.
2. Influence the design of the devolution transition activities
of NGAs concerned, and direct NGA support along the capacity
requirements of the LGUs
3. Leverage support from other governance stakeholders in
cooperative undertakings during the devolution transition period
4. Guide in the monitoring and performance assessment of
LGUs by the DBM, DILG, and NGAs concerned
 Components of LGU DTPs

State of Phasing of Local Revenue Performance

Devolved Assumption of Capacity Targets for
Organizational Forecast and
Functions, Functions, Development Devolved
Structure and Resource
Services, and Services, and Agenda and Functions and
Staffing Pattern Mobilization
Facilities* Facilities* Requirements* Services
Strategy

*Applicable for barangays

 State of Devolved Functions, Services,
and Facilities

LGUs shall provide baseline information on the devolved functions,

services, and facilities already being carried out vis-à-vis
Section 17 of RA 7160 and other existing laws which
subsequently assigned new functions to LGUs
 Phasing of Assumption of Functions, Services,
and Facilities
• Map out the full assumption of devolved functions, services, and
facilities contingent on LGU development priorities, institutional capacity and
resources
• Indicate the phasing and timing of the implementation of these
responsibilities
• In consideration of the following:
1. Inventory of devolved responsibilities that LGUs are to fully assume
including the NGA PPAs along the devolved functions and services;
2. LGU’s assessment of the relevance and applicability of NGA PPAs along
the devolved functions and services; and
3. Results of consultations with sectoral committees of RDC
 Capacity Development Agenda

• Outlines the CapDev requirements to absorb, manage, and sustain the

responsibilities under a fully devolved set-up

• LGUs shall ensure that funding for their identified capacity development
requirements will be included in their AIP and annual budget

• The result of the capacity assessment for CapDev Agenda shall guide the
provinces, cities, and municipalities in updating their OSSP
 Organizational Structure and
Staffing Pattern
• LGUs shall review and propose modification in their OSSP in
reference to their phased assumption of the functions, services, and
facilities to be fully devolved

• Adjustments in the OSSP shall be guided by the following:

1. Section 325 (a) to (g) of RA No. 7160 providing limitations on the
use of LGUs funds
2. DBM LBC No. 61 providing position titles and corresponding salary
grades assignments in the LGUs; DBM Circular Letter No. 2007-6;
DBM LBM No. 82
3. CSC rules and regulations and related reference materials
4. Such additional issuances that the DILG, DBM, or CSC may
thereafter issue
 Local Revenue Forecast and Resource
Mobilization Strategy

• Communicates the intention and measures of LGUs to unlock

potential local revenue sources to address possible fiscal gaps in FY
2023 and FY 2024 as a consequence of:
• Increased expenditure requirements to support local economic recovery
from the effects of the COVID-19 pandemic
• LGUs’ full assumption of devolved responsibilities
• Anticipated decrease in their national tax allocation in FYs 2023 and
2024
• LGUs shall prepare a 3-year (FY 2022-2024) forecast for key local
revenue sources: taxes, fees and charges, and income from economic
enterprises
• LGUs shall refer to DOF-BLGF MC No. 16-2015
 Performance Targets for Devolved
Functions and Services
• LGUs shall define their performance
targets for devolved responsibilities
starting in FY 2022 onwards and describe Performance assessment/monitoring
tools
their strategy to achieve these targets
• SGLG and Governance Assessment
Report (GAR)
• To establish the baseline information for • Community-Based Monitoring System
performance targets and to ensure (CBMS)
alignment with NG priorities and • Provincial/NCR LGU Results Matrices
performance indicators (RM)
• Citizen Satisfaction Index System (CSIS)
• Sectoral plans under the Provincial/
• Rate My LGU Service
Regional Development Plans • Public Financial Management
• Sectoral profiles prepared by NGAs Assessment Tool
concerned • Financial Sustainability Index/Iskor ng
• Sectoral committees of the RDC ‘yong Bayan
Preparation of the LGU DTPs
• The LCE concerned shall spearhead the preparation of the LGU DTP and ensure that
this is approved within the timeframe prescribed in the JMC

• The Local Sanggunian (Barangay/Bayan/Panlungsod/Panlalawigan) shall review

and approve the LGU DTP through a Sanggunian Resolution

• The LCE shall organize the LGU Devolution Transition Committee (LGU DTC) which
shall be responsible for the preparation of the LGU DTP and in monitoring the implementation
thereof
LGU Devolution Transition Committee
For provinces, cities, and municipalities
❑ The LCE as Chair;
❑ A regular member of the Local
Sanggunian;
❑ Members of the Local Finance Committee;
❑ Local Administrator;
❑ President of the Liga ng mga Barangay;
and,
❑ At least two (2) representatives from
CSOs and POs that are members of the
LDC
For barangays
❑ Punong Barangay as Chair;
❑ Barangay Secretary;
❑ Barangay Treasurer; and,
❑ A regular member of the Local
Sanggunian
❑ At least two (2) representatives from
CSOs and POs that are members of the
BDC
 LGU DTP Implementation and
Support to Transition
• Form a communications team to formulate their respective communications plans and
strategies
• Where applicable, P/C/Ms submit to the appropriate CSC Field Office the approved plantilla of
positions
• Ensure vertical alignment of local development priorities with regional and national priorities
• Develop mechanisms to continually upgrade their services and guarantee the quality of LGU
service delivery, enforce quality assurance and compliance, manage performance reporting
and performance improvement, create incentives for innovations, and meet the expectations
of the public of LGU services
• Set up the appropriate mechanism to collect comparable data and information on a regular
basis to systematically track their performance targets
 Timelines and Submission

Barangays LGU DTPs to the city/municipal

Barangay DTPs level within 60 calendar days after the
issuance of the JMC

Component cities/municipalities to the

Cities/Municipalities DTPs province within 90 calendar days after the
issuance of the JMC

Provinces, HUCs, ICCs, and NCR LGUs to

DILG/NGAs within 120 calendar days after
Provinces/HUC/ICC DTPs the issuance of the JMC
 Timelines and Submission
DILG ROs

Regional NGAs to guide

and direct NGA assistance
and capacity development
Provinces/ support
HUC/ICC/
NCR LGU Other institutional partners to
seek support and engage them in
DTPs cooperative undertakings during
the devolution transition
Thank you!

For more information:

Bureau of Local Government Development
Department of the Interior and Local Government
DILG-NAPOLCOM Center,
EDSA corner Quezon Avenue, West Triangle, Quezon City
Trunkline: (02) 876-3453 local 4102
Tel No. (02) 929-9235 / 927-7852
E-mail address: dilgtransition.secretariat@gmail.com