Innovative Financing for Ensuring

Sustainable Development Goal 4:

Education
The Case of the Philippines
Secretary Leonor Magtolis Briones
06 September 2016
 Presentation Outline

1 State and Cultural Values towards

Education

2
Basic Education Reforms in the
Philippines

3
Financing Basic Education in the
Philippines

DEPARTMENT OF EDUCATION 2
1
State and Cultural Values
towards Education

DEPARTMENT OF EDUCATION 3
MANDATE

The constitution commands

the state to give priority to
education, and to protect and
promote the rights of all
citizens to quality education
at all levels and to take
appropriate steps to make
education accessible to all.

DEPARTMENT OF EDUCATION 4
 Very clear constitutional provisions on
preferential support for education

“The state shall

assign the highest
budgetary priority
to education…”

Article XIV, Section 5 (5), 1987 Philippine Constitution

DEPARTMENT OF EDUCATION 5
 Education as a cultural value

• Filipinos value education

– In “Ambisyon Natin 2040”, the national
survey on the aspirations of the Filipino
people conducted by the National Economic
and Development (NEDA) in 2015, all
Filipinos sees education as the key to achieve
the life that they want.
• 3 out of 4 Filipinos would want their children finish
college education
• the rest would want their children to graduate from
high school or from technical/vocational school

DEPARTMENT OF EDUCATION 6
2
Basic Education Reforms in the
Philippines

DEPARTMENT OF EDUCATION 7
 DepEd ushered major reform in
Basic Education through K to 12

1. Republic Act 10157 or the “Kindergarten

Education Act”, approved 20 Jan 2012
 Institutionalized Kindergarten a mandatory and
compulsory component of Basic Education

2. Republic Act 10533 or the Enhanced Basic

Education Act of 2013, approved on 15 May 2013
 Two years of Senior High School was added to
Secondary Education

DEPARTMENT OF EDUCATION 8
 K to 12 involves:

Overhaul of the
Curriculum

Massive • School buildings and facilities

inputs • Learning materials and implements

such as textbooks, libraries, and ICT-
assisted learning

• Hiring and professional development

of teachers

DEPARTMENT OF EDUCATION 9
 Traditional Methods of
3A Financing Education

DEPARTMENT OF EDUCATION 10
 Usual Methods of Financing

• General Appropriations Act (National Budget)

– Sourced from taxes and borrowings
• Contributions of multilateral organizations
– Official Development Assistance (ODA)
• Contributions of civil society organizations
– Project-based assistance (local and international)
– Lobbying in Congress for increase in education
appropriations, e.g. Social Watch Philippines’
Alternative Budget Initiative
• Contributions of state-owned enterprises

DEPARTMENT OF EDUCATION 11
 Basic Education Budget
17 %
DepEd Budget, 569.1
billion
% to Nat’l Budget

Growth Rate 14.5%

% to GDP 431.5
14.1% billion
367.1
13.6% billion
14.6%
309.4
13.2% billion
293.4 31.6%
12.6% 238.8 billion
11.4% billion
207.3
175.0 billion 22.9%
billion 18.5% 18.7%
18.2%
15.2%
5.5%

1.9% 2.1% 2.2% 2.5% 2.4% 2.6% 2.9% 3.5%

2010 2011 2012 2013 2014 2015 2016 2017

Proposal
DEPARTMENT OF EDUCATION 12
 Contributions from Bilateral and
Multilateral Organizations

• Basic Education Assistance for Mindanao (BEAM) –

ARMM
– PhP 3.927 billion ODA grant from the Government of Australia
• Basic Education Sector Transformation (BEST) Program
– AUD 150 million ODA from the Department of Foreign Affairs
and Trade (DFAT) and the Government of Australia
• Senior High School Support Program
– USD 300 million loan from the Asian Development Bank
• Learning, Equity and Accountability Program Support
(LEAPS)
– USD 21 million loan from the World Bank

DEPARTMENT OF EDUCATION 13
 Contribution from State-owned
Enterprise

• PhP 12 billion has been earmarked by the state-owned

gaming firm, PAGCOR, for school buildings as part of its
corporate social responsibility.
– PhP 2 billion of which is being utilized for building classrooms in
schools damaged by typhoon Yolanda (Haiyan)
– PhP 5 billion has been earmarked for Senior High School
buildings
• While PAGCOR’s contribution in augmenting
resources of DepEd is recognized, PhP 31.5 million
unobligated funds were returned to the state owned
enterprise in August 2016 to support the new
administration’s position that gambling should not
be a source of funding for education.

DEPARTMENT OF EDUCATION 14
 Innovations in Financing
3B Education

DEPARTMENT OF EDUCATION 15
Innovations in Financing Education
• Innovations at the national level
– Public-Private Partnerships
– Government Assistance to Students and Teachers in Private
Education (GASTPE)
– External Partnerships
• Adopt-a-School Program
• Brigada Eskwela (School Brigade)
• Pedals and Paddles Project

• Innovation at the local level: Special Education Fund

(sourced from real property taxes)
• Innovations at the school level
– Normative School-based Maintenance and Other Operating
Expenditures (MOOE)
– Parents-Teachers Associations

DEPARTMENT OF EDUCATION 16
 Public-Private Partnership

• Relationship where government contracts out to

private providers the supply of a particular
service of a defined quantity and quality at an
agreed price for a specific period of time.
• Win-win arrangement:
– Private sector: maximizes the use of its skills,
resources and capacities to deliver services in a more
efficient manner; generates new business
– Government: enables public sector to focus on
delivering other critical functions and services;
promotes certainty and predictability in spending

DEPARTMENT OF EDUCATION 17
 Public-Private Partnerships (PPP):
A strategy for classroom provision

• The PPP approach provides

opportunities to:
– Introduce innovations in the
design, methods, and materials
for classroom construction
– Reduce costs for government
– Fast-track the construction and
delivery of classrooms
• PPP helps in closing the
classroom gap

18
DEPARTMENT OF EDUCATION
PPP for School Infrastructure Project
(PPSIP) 1: Build-Lease-Transfer

• PhP 16.28 billion-Build-Lease-Transfer contracts for the

design, construction, maintenance and financing of
classrooms (with toilets and seats) in 2,226 schools in
Regions I, III and IV-A completed in 2015 for an amortization
period of 10 years.
• Private sector implementers:
– Bright Future Educational Facilities, Inc. (BFEFI) for Region I
– Citicore-Megawide Consortium, Inc. (CMCI) for Regions III and IV-A

DEPARTMENT OF EDUCATION
PPP for School Infrastructure Project
(PPSIP) 2: Build-Transfer

• PhP 3.86 billion-Build-Transfer contracts for the design, and

construction of classrooms (with toilets and seats) in 1,760
schools in Regions I, II, III, X, CARAGA and CAR.
• Private sector implementers:
– Megawide Construction Corporation for Regions I, II, III and CAR
– BSP & Co. Inc./VT Lao Construction for Regions X and CARAGA
• Project and construction still ongoing; full payment upon
completion
DEPARTMENT OF EDUCATION
Government Assistance to Students and
Teachers in Private Education (GASTPE)

• Consists of Education Service Contracting

(ESC) for Grades 7 to 10 and Senior High
School (SHS) Voucher Program
• ESC is the longest-running example of PPP in
Philippine education: government provides a
tuition subsidy for students who wish to pursue
secondary education in certified private schools.
The aim is to democratize and improve access
to education and reduce class size in public high
schools.
• Same concept in the SHS Voucher Program
DEPARTMENT OF EDUCATION 21
GASTPE: Enhancing of the Complementarity of
Private and Public School Institutions

P 9.0 Billion P 24.0 Billion P 1.3 Billion P 2.5 Billion

Joint Delivery Voucher
Voucher Program for Voucher Program for for Senior High School
Education Service Private Senior Non-DepEd Public
Contracting Technical Vocational
High Schools Senior High Schools, and Livelihood
1 Million Grantees Specializations
1.4 Million Grantees 138,462 Grantees
75,000 Grantees

22
DEPARTMENT OF EDUCATION
 Adopt-a-School Program
• Innovative government program that gives
stakeholders the opportunity to become
proactive partners in education
• Fund mobilization scheme based on the concept
of matching grant involving non-government
organizations (NGOs) and the private sector.
• Costs on human resources and materials and
facilities acquisition and development are shifted
to various stakeholders who have a natural
interest in the promotion of basic education

DEPARTMENT OF EDUCATION 23
 Adopt-a-School Donations

YEAR AMOUNT
2011 PHP 3,384,998,894.36
2012 PHP 6,056,164,727.25
2013 PHP 5,334,647,074.31
2014 PHP 6,079,909,602.95
2015 PHP 7,988,978,873.18
Jan.-June PHP 2,732,947,859.76
2016
TOTAL PHP 31,577,647,031.81
DEPARTMENT OF EDUCATION
Brigada Eskwela (School Brigade)

•Brigada Eskwela assembles an army of

volunteers to repair and prepare classrooms in
time for the opening of classes

•Private partners are given the opportunity to

contribute resources for the effort. Local
government units and community members
mostly provide manpower and volunteer
services during this week-long activity.

DEPARTMENT OF EDUCATION
Brigada Eskwela Generated Resources

YEAR AMOUNT
2011 PHP 1,114,568,914.06
2012 PHP 1,519,575,657.13
2013 PHP 2,014,658,988.2
2014 PHP 3,199,276,986.97
2015 PHP 4,075,740,707.63
Jan.-June PHP 1,720,733,583.70
2016
TOTAL PHP 13,644,554,837.69

DEPARTMENT OF EDUCATION
Brigada Eskwela Volunteer Turn-Out

YEAR NUMBER
2011 5,388,661
2012 6,502,010
2013 6,950,952
2014 8,131,982
2015 8,713,302
Jan.-June 3,912,529
2016
TOTAL 39,599,436
DEPARTMENT OF EDUCATION
 The Pedals and Paddles Project

Boats for those who To prevent them

from dropping out
cross rivers to go to
school
– P10,000 for small boats for
3-5 kids
– P50,000 for motorized boat
for at least 20 kids

Bicycles for those who

walk long distances to
go to school
– P3,000 per reconditioned
bicycle

DEPARTMENT OF EDUCATION
 Special Education Fund

• Local government units (LGUs) provide

supplementary funding support to public basic
education through the Special Education Fund
(SEF), a sustainable source of financial
resources that are earmarked for the basic
education subsector
– 1% tax on real property that LGUs are mandated by
the Local Government Code (Republic Act 7160 of
1991) and certain portion of the taxes on Virginia-type
cigarettes and duties on imported leaf tobacco

DEPARTMENT OF EDUCATION
Summary of Receipts of Local Governments for
Special Education Fund

₱25.620

₱22.781
₱20.178
₱18.757

₱14.759

₱3.257

SPECIAL EDUCATION FUND (IN BILLION PESOS)

2010 2011 2012 2013 2014 2015

Source: Budget of Expenditures and Sources of Financing, DBM (2012-2017)

DEPARTMENT OF EDUCATION 30
 Normative School MOOE
• The Maintenance and Other
Operating Expenses (MOOE) • The amount of MOOE allocated
is the allocated funds for public per school is based on:
– Total school enrolment
elementary and secondary
– Number of teachers
schools that can be spent on
– Number of classrooms
activities and necessities (i.e.
– Number of graduating students
electricity and water).

• Special programs or activities are

• Normative School MOOE is
incorporated in the School
defined as the least amount of
MOOE beginning 2016:
MOOE which a DepEd school
– Special curricular programs in
needs to comply with service Science, Sports, Arts and Special
standards in implementing the Education
approved regular curriculum – DepEd Internet Connectivity Program
for K to 6 (Elem. Sch.) and – Gulayan sa Paaralan
Grades 7 to 10 (Junior High) – School-based Management (SBM)
Grants
DEPARTMENT OF EDUCATION 31
Parents-Teachers Associations (PTA)

• PTAs are organized in schools and recognized by the DepEd for the
purpose of providing a forum for the discussion of issues and their
solutions related to the total school program and to ensure the full
cooperation of parents in the efficient implementation of such
program.
― PTAs shall provide mechanisms to ensure proper coordination with the
members of the community, provide an avenue for discussing relevant
concerns and provide assistance and support to the school for the
promotion of their common interest.

• PTAs may collect voluntary financial contributions from members

and outside sources to enable it to fund and sustain its operation
and the implementation of its programs and projects exclusively for
the benefit of the students and the school where it operates. The
PTA’s programs and projects shall be in line with the School
Improvement Plan (SIP).
DEPARTMENT OF EDUCATION 32
 In conclusion,
• Strategies for innovative financing are
developed by each country based on their
respective
– Constitutional provisions
– Laws
– Government Structure
– Culture
– Participation of civil society organizations,
faith-based institutions, and private individuals
– Business sector

DEPARTMENT OF EDUCATION 33
 In conclusion,
•Sources of financing can come from:
–national budget
–local government contributions
–multilateral and bilateral assistance
–private-public partnerships
–special funds from taxes
–contributions from civil society, faith-based
organizations and private business sector
– individual contributions

DEPARTMENT OF EDUCATION
 In conclusion,

•There is no single formula for all but there

are many opportunities for innovation and
creativeness

DEPARTMENT OF EDUCATION