School Finance and

business
administration
TOPICS Reporters
• Legal Issues in School Finance Raian R. Duran
• Legal Background of School Finance Vives P. Hallado
• Different Constitutional Provisions
that Support the Financing of
Professor
Education
Rome Moralista, PhD
Legal Issues in School Finance
REPUBLIC ACT No. 5447
An Act Creating a Special Education Fund to be
Constituted from the Proceeds of an Additional Real
Property Tax and a Certain Portion of the Taxes on
Virginia-Type Cigarettes and Duties on Imported Leaf
Tobacco, Defining the Activities to be Financed, Creating
School Boards for the Purpose, and Appropriating Funds
Legal Issues in School Finance
Republic Act 6655 - Also known as the Free
Public Secondary Education Act of 1988
Public secondary schools were nationalized and they were
reclassified by source of funding and curriculum type Free
Public Education - the state should maintain a school
system for free public education in the elementary and
secondary school levels. It may be noted that all public
secondary schools today are now nationalized.
Legal Issues in School Finance
Republic Act 6728 : Government Assistance to
Students and Teachers in Private Education Act
It is 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
Legal Issues in School Finance
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 by
maximizing the use of existing resources of private
education, recognizing in the process the government
responsibility to provide basic elementary and secondary
education as having priority over its function to provide for
higher education.
 Legal Background of
School Finance
Batas Pambansa Bilang 232
Chapter 5 - School Finance and Assistance
Section 33. Declaration of Policy
It is hereby declared to be the policy of the State that the
national government shall contribute to the financial support
of educational programs pursuant to goals of education as
declared in the Constitution. Towards this end, the
government shall:
 Legal Background of
School Finance
1. Adopt measures to broaden access to education
through financial assistance and other forms of
incentives to schools, teachers, pupils and students; and
2. Encourage and stimulate private support to education
through, inter alia (among other things), fiscal and other
assistance measures.
Funding of
Public
Schools

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 Section 34
National
Public school shall continue to be funded
Funds from national funds

Section 35
Financial Aid The national government shall extend
Assistance to
Public financial aid and assistance to
Secondary  public secondary schools
Schools

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 Provinces, cities, and municipalities and
barangays
Section 36
Share of
Local Annual budgets
Government  operation and maintenance of public
secondary schools on the basis of
national fund participation

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 Section 1 of Republic Act No. 5447
Ministry of Education, Culture and Sports
Section 37
Special and the Ministry of the Budget
Education
Fund Proceeds shall be considered a local fund
shall be subject to Presidential Decrees No.
477, Presidential Decree No. 1375

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 Section 38 charging tuition and other school fees
Tuition and
other School  improve facilities
Fees  accommodate more students

Institution may receive:

Section 39  grants
Income from  legacies
other Sources
 donations
 gifts for purposes

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