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The Filipino people have always recognized the importance of education in promoting
their national welfare. Nowadays a very important problem has arisen: how to get more and
better education from available resources. This does not imply mean more of the same old
curriculum and methods for more people, or a retreat to yesterday’s standards.
The need for more or better education requires modernizing our educational management
and developing stronger capabilities:
 To monitor and evaluate the performance of institutions against well-defined and up-to-
date objectives;
 To discover ways to improve their efficiency and effectiveness; and
 To plan their future with changes in view.
It is these larger considerations that make educational finance and budgeting today much
more essential than ever before. Cost analysis has no special magic to remedy faulty conditions,
but it is a vital part of effective educational planning and management.
People behave differently when confronted even with similar problems. This makes it
difficult to predict how various regions, divisions, districts, and schools react to the problem of
financing, which is far from satisfying the ever-increasing demand for education the increasing
demand for education. Some schools/regions have started making concerted efforts to improve
the internal efficiency of education by innovation. However, many are still sticking to traditional
ways. Whether the will to innovate will be sustained remains to be seen, but it will, to a great
extent, be influenced by the success or failures of those who are already innovating.
The most important element of a solution to the problem is an efficient educational manager
in the region/division/school who is committed to reducing cost and improving productivity and
internal efficiency of the system. Good decisions based on facts and on their thorough analysis
are required. Educational managers should also be guided by the laws relating to finance and
support services in decision making, policy formulation, and other related management
functions. Such laws include the following:
 LOI’s;
 MEMO’s;

1. Commonwealth Act No 586 – Sec. 7 of this Act nationalizes the support of elementary
schools except in chartered cities. According to this Act, chartered cities shall continue to
support all intermediate classes within their jurisdiction. However, the national
government may grant aid to chartered cities not financially able to provide fully for their
intermediate classes. Approved, Aug 7, 1960.
2. Republic Act No. 364 – This Act authorizes all vocational schools to collect tuition fees,
to receive contributions from private persons and to contact loans from government and
private banks and other financial institutions, ad to create a special trust fund for each
school. Approved, June 9, 1969.

Prepared by:
Alvin Jay L. Mendonis