Capacity Development Program

for CSOs in Local Development Councils

MODULE 2:
LOCAL DEVELOPMENT

1
Module 2 Outline
• Session 1- Local Governments and Development: Laying the Context
• Session 2- Key Features of the 1991 Local Government Code
• Session 3- LGU Executive and Legislative Powers/Functions
Session 1
Local Governments and
Development: Laying the Context
Session 1 Objectives
At the end of this session, participants will be able to:
• Situate the context of development at the local level
• Explain important concepts related to local governance such as local
autonomy and the types of decentralization
• Discuss the benefits of decentralization
Structure of Local Governments: The Development Context
National
government

Regional Government (BARMM) MMDA

Province HUC/ICC

Province

Component
Municipality
City
Municipality Component City

Barangay Barangay Barangay Barangay

Barangay
CONCEPTS RELATED TO LOCAL GOVERNANCE
Local Autonomy
• a degree of self-determination and self-government enjoyed by local
units in their relationship with the central government thus implying
a measure of independence from national control (Alderfer,1964).
CONCEPTS RELATED TO LOCAL GOVERNANCE
Decentralization
• Dispersal of authority from the central government
• a pre-requisite to local autonomy since it measures the extent of
allocation of substantive functions to local units and their
participation in making decisions affecting their jurisdictions
(Fernandez in Sosmena,1986)
TYPES OR FORMS OF DECENTRALIZATION
• Administrative Decentralization
• Political Decentralization (Devolution)
• Debureaucratization
 EXAMPLE OF ADMINISTRATIVE DECENTRALIZATION

SOUTH MUNICIPAL EXTENSION HALL

NORTH MUNICIPAL EXTENSION HALL
 Administrative Decentralization
• Has two sub-categories:
(1) Deconcentration
(2) Delegation
Administrative Decentralization
Deconcentration
• spreading the decision-making authority (including financial and
management responsibilities) across different levels of a central
government agency
• merely shifts responsibilities from one central government official (e.g.
from the central office) to another central government official
(regional office)
• GIVE EXAMPLES
DILG CENTRAL OFFICE DILG REGIONAL OFFICE
Administrative Decentralization
Deconcentration
• is a limited form of decentralization since substantive decision-making remains
at the center
• Is a management tool to decongest the central office and spare it from having
to act on matters that may best be addressed at lower levels (e.g. routine and
administrative matters)
(Brillantes, 2003)

Example: preparation of budget proposals by the Regional Offices of a particular

Department/agency of the NG but the central office has the final say as to the
amount of budget for the regional office
Devolution
• More substantive form of decentralization
• Also called political decentralization. It essentially involves the
transfer of powers and responsibilities from national government
agencies to local government units

(Health, social welfare and development, environment, agriculture

services/functions, local infrastructure etc.)
WHAT IS BUREAUCRACY? New approach to
reduce TOO MUCH
BUREAUCRACY

EASE OF DOING
BUSINESS = One
Stop Construction
Shop
DISADVANTAGE OF BUREAUCRATIC MANAGEMENT
Debureaucratization
-involves harnessing the private sector and non-governmental
organizations in the delivery of services through various modalities
including contracting out, private-public partnership, and joint
ventures, among other things

EXAMPLES
• Contracting out= garbage collection and disposal
• PPP e.g. MarketPlace of Mandaluyong City
• Joint-ventures= operation of LEEs (e.g. operation/mgt of public market)
 Decentralization
Dispersal of authority from the center
Administrative
Debureaucratization- transfer
Political Decentralization- Decentralization-
of authority to the private
devolution of powers to LGUs deconcentration of authority to
sector /NGOs
regional or field offices/units
Benefits of Decentralization (Devolution)
 Better service delivery, including poverty alleviation
 Better matching of services with citizen demands
 Greater citizen willingness to pay for services
 More revenue mobilization by local governments
 More governmental innovation
Benefits of Decentralization (Devolution)
 More grassroots participation
 Greater ability to accommodate ethnic/religious differences
 More accountability –more “democracy”
 Greater potential for maintaining national unity (e.g.,
autonomy versus dissolution).

(Brillantes,2008)
 Thank you ……

LET US WELCOME MS. MAYETTE VANESSA O. SONIO

TO OUR SESSION 2
ON LGC 1991 AND THE MANDANAS RULING
Session 2
Key Features of the 1991 Local
Government Code
Session Objectives
At the end of this session, the participants will be able to:
• Explain the salient features of the 1991 Local Government Code
• Identify the devolved powers and functions of LGUs and their role in
service delivery
• Describe the importance of people’s participation in local
governance
• Discuss what the Mandanas-Garcia Ruling is all about
1991 Local Government Code: Key Features
• Promotion of • Promotion of good
devolution (political governance through
decentralization) by transparency,
expanding powers, accountability and
functions and participation in local
resources of LGUs governance
I. Promotion of Devolution
Devolved:
(a) Powers and Functions (Sec 17)
(b) Resources (taxing and non-taxing powers Sec 18, 284,289,291,297-
302)
(c) Regulatory Powers (Sec 20,389,447,458)
I. Promotion of Devolution
• Devolved
Powers • Primary, secondary, and tertiary health
and services
Functions
• Agriculture extension and on-site research
• Community-based forestry projects
• Locally-funded infrastructure facilities
• Social welfare services
• Solid waste disposal
I. Promotion of Devolution
• Devolved • Information services
Powers • Municipal buildings, cultural centers, parks,
and playgrounds, sports facilities, and other similar
Functions facilities
• Public markets, slaughterhouses and other
municipal enterprises
• Public cemetery
• Tourism facilities and other tourist attractions
• Sites for police and fire stations and substations and
the municipal jail
I. Promotion of Devolution
• reclassification of agricultural lands
Devolved • tricycle franchise
Regulatory
• food products inspection
Powers
• pollution control
• preparation of comprehensive land use
plans
• licensing of cockpits and cockfights
• approval of subdivision plans
• regulation of tourism establishments
I. Promotion of Devolution
• Increased • External Sources
share in the -40% of all internal revenue taxes=IRA (pre-2022)
IRA/NTA; - 40% all national taxes –Mandanas-Garcia Ruling
expanded -share from the national wealth/national taxes
taxing and like VAT
other • Local or Own-source
revenue -Taxes, (Sec 18)- Real Property Tax, Idle
generation Land Tax, Business Tax, Franchise Tax,
powers Amusement Tax etc.
-Fees and charges (business permits,
parking fees, sanitation permits etc)
I. Promotion of Devolution
• Enter into contracts
• Enhanced • Engage in credit finance, PPP, bond flotation,
corporate and other non-traditional ways of revenue
powers mobilization
• Secure grants
1991 Local Government Code
• Promotion of Good Governance
Good Local Governance

• Devolution of powers, by itself, will not lead to local development

and improvement of people’s welfare.

• Local governments need to practice “good local governance” which

consists of transparency, accountability and participation

"Good governance is perhaps the single most important factor in eradicating poverty
and promoting development. "
- Kofi Annan, Former Secretary General of the United Nations
Some Indicators of Good Governance
• Transparency
• Accountability
• Participation
• Responsiveness
• Rule of Law
• Equity and Inclusiveness
Transparency
•Transparency refers to sharing information and acting in an open
manner.

•Transparency is a key element of bureaucratic accountability that

entails, among other things, making available for public scrutiny all
public accounts and audit reports. Transparency protects against
government error, the misallocation of resources, and corruption.

https://pogar.org/governance/transparency-and-accountability.html
 
Accountability
• Accountability ensures that officials in public, private, and
voluntary sector organizations are answerable for their actions and
that there is redress when duties and commitments are not met.

UNDP (2014), Discussion Paper: Building Transparency, and

Anti-Corruption in the Post 2015 Development Framework
Participation
• This means freedom of association and expression on the one hand
and an organized civil society on the other hand.

• Participation of both sexes is crucial to good governance. Participation

could be direct or through legitimate, intermediate institutions or
representatives.

https://www.unescap.org/sites/default/files/good-governance.pdf 
 The Hierarchy of Participation: Levels, Techniques and Examples
Empowering

Collaborating/
Partnering
Citizens make decisions
Dialogue-based communication
Level of public influence: full control
Consulting
Involve citizens in decision-making
Dialogue-based communication
Level of public influence: moderate
Informing
Provide information, obtain feedback
Two-way communication
Level of public influence: limited
Provide information
One-way communication
Source: https://wesolve.app/the-hierarchy-of-participation-levels-techniques-and-examples/
Level of public influence: no
 Basic service
delivery (Sec
17)
Power
Regulatory
powers
LGUs
Snapshot of the External (IRA,
Sec. 284)
Taxes/create
sources of revenue
Local Government Resources
(Sec 18)
Share in local
Code Internal resource utilization
(Sec 289-294)

Recall Secure grants (Sec

LGC
(Sec. 69-75) 23)

Initiative
Controls
(Sec. 120-127)

Mandatory
consultations
PEOPLE
(NGOs) Representation
in LSBs, LDC,
PBAC, others
Barangay
Participation assembly (Sec
397

Pagsanghan, 1992 Sectoral Ex: women,

representation workers
The Mandanas-Garcia Ruling of the SC: Post
1991 Local Government Code Development
• The Supreme Court ruled that the just share of LGUs from the
national taxes is not limited to “national internal revenue taxes”
collected by the Bureau of Internal Revenue but includes collections
(customs duties) by the Bureau of Customs and other collecting
agencies. 
• Increases the shares of the LGUs from the intergovernmental
transfers by 37%
• The substantial increase in the shares of LGUs will aid them in the
effective discharge of other duties and functions devolved to them
under Sec. 17 of RA 7160
FISCAL IMPLICATION OF THE SC RULING
ON THE MANDANAS-GARCIA CASE
FY 2021 FY 2022
(in Billions) (in Billions)
Without the SC Ruling 695.49 773.87
With the SC Ruling 959.04
IMPACT 185.17
Increase year on year (FY 2021- FY 2022) 263.55
Source: Director Aries Macaspac, Department of Budget and Management
*Totals may not add up due to rounding;
 FY 2023 NTA SHARE OF LGUs

Amount (Php)
Certification
FY 2022 FY 2023
Bureau of Internal Revenue 765,201,593,000 665,801,610,000
Bureau of Customs 193,738,592,000 154,434,736,000
Bureau of the Treasury 101,065,000 32,582,000
TOTAL 959,041,250,000 820,268,928,000

Source: Director Aries Macaspac, DBM

EXECUTIVE ORDER NO. 138
DATED JUNE 1, 2021

FULL DEVOLUTION OF CERTAIN

FUNCTIONS OF THE EXECUTIVE
BRANCH TO LOCAL
GOVERNMENTS
 Executive Order No. 138
Salient features of EO 138:
1. Delineation of national government agencies and LGU
roles
2. Preparation of Devolution Transition Plans (DTPs) of both
national government agencies and LGUs
3. Creation of Committee on Devolution (ComDev) that will
oversee and monitor DTP implementation
 Executive Order No. 138
Salient features of EO 138:
4. Creation of a Growth Equity Fund (GEF) to address issues
on marginalization, unequal development, high poverty
incidence, and disparities in the net fiscal capacities of
LGUs. This is meant for poor income class LGUs
5. Capacity building for LGUs
6. Strengthening of Planning, Investment Programming, and
Budgeting Linkage, and M&E Systems
7. Options for affected NGA personnel
Structured Learning Exercise (SLE)
Structured Learning Exercise (SLE)

Instruction:
• The facilitator will cite a major devolved function (under Sec17 of
the LGC)
• For each function, participants will be asked to identify the SDG
which the said function falls under
• Participants will be given a list of the SDGs (see sample on slide 23)
• Participants will also be given a handout of the Global Indicator
Framework for SDGs (which contains all 169 SDG targets).*

* https://unstats.un.org/sdgs/indicators/indicators-list/
 Question:
Identify which SDGs do the following devolved services fall under?
1. Agricultural Extension
 SLE Answer Key: Explanation
1. Agricultural Extension – SDG 2 primarily
2.3 By 2030, double the agricultural productivity and incomes of small-
scale food producers, in particular women, indigenous peoples, family
farmers, livestock raisers and fisherfolks, including through secure and
equal access to land, other productive resources and inputs, knowledge,
financial services, markets and opportunities for value addition and non-
farm employment
 Question:
Identify which SDGs do the following devolved services fall under?
2. Social welfare services
 SLE Answer Key: Explanation
3. Social welfare services – SDG 1 primarily
1.4. By 2030, ensure that all men and women, in particular the poor and the
vulnerable, have equal rights to economic resources, as well as access to basic
services
Session 3
LGU Executive and Legislative Powers
Session Objectives

At the end of the session, the participants will be able to

distinguish local executive powers and local legislative powers
 Organization Structure of a Local Government Unit
(Province,City,Municipality)

A. Executive Branch
• Office of the Local Chief Executive (Mayor, Governor)
• Office of the Administrator
• Line and Staff Offices

B. Legislative Branch
• Local Sangguniang (Vice-Mayor/Vice-Governor; Sangguniang Members (Councilors, Board
Members)
• Office of the Secretary to the SP
Sample Organizational Chart of a Municipality
Local Executive Powers
 Section 444: The Chief Executive (Municipal Mayor)
1. Exercises general supervision and control over all programs,
projects, services, and activities of the municipal
government
2. Enforces all laws and ordinances relative to the governance
of the municipality and the exercise of its corporate powers
3. Initiates and maximizes the generation of resources and
revenues
4. Ensures the delivery of basic services and the provision of
adequate facilities as provided under Section 17
Local Legislative Powers
Section 48: Local Legislative Power
Local legislative power shall be exercised by the:

✔ Sangguniang Panlalawigan for the province

✔ Sangguniang Panlungsod for the city
✔ Sangguniang bayan for the municipality
✔ Sangguniang Barangay for the barangay
 Section 446: Members of the Sanggunian (Municipal)
• Municipal Vice Mayor – Presiding Officer
• Regular members (elected councilors)
• President of the municipal chapter of the league of barangays
• President of the municipal federation of the Sangguniang Kabataan
• 3 sectoral representatives
• Women – (Sablayan=IPMR)
• Agricultural or industrial worker
• Other sectors including urban poor, indigenous cultural communities,
or disabled person
 LGC Sec 447: Powers of the Sanggunian (Municipal)

• Approve ordinances & pass resolutions necessary for effective and efficient
government
• Generate and maximize the use of resources and revenues for development plans,
program objectives and priorities of the LGU (thru revenue generation and utilization)
• Grant franchises, enact tax ordinances (which serve as the legal basis for issuance
permits or licenses, levying taxes, fees and charges)
• Regulate the use of land, buildings and structures within the LGU thru the enactment
of zoning ordinances
• Approve ordinances to promote effective and efficient basic service delivery
Role of Sanggunian in Planning & Development

• The unique role of the Sanggunian in local planning and

development is its power to “prescribe reasonable limits and
restraints on the use of property” which is the basis of local
land use planning.
• Also, only the Sanggunian has the power to appropriate
public funds. No development programs, projects and
activities could be implemented through the local budget
without authorization from the Sanggunian.”

Serote, Rationalizing the Local Planning System, 2008, p.3

Summary
Generally speaking, the LCE executes the laws and implements
the programs and projects of the LGU, while the Sanggunian
enacts the laws and authorizes the spending of money to
implement the programs and projects, all within the context of
the LGU powers as framed in the LGC and other pertinent
national laws.
 LEARNING ACTIVITY: A case study
The Municipality of Sablayan is facing a problem of too many
vendors selling their wares in the town plaza, causing heavy
traffic along the main road. Try to solve the problem.
Divide the group into two: one will represent the LCE and the LGU
Staff (Executive) and other group will represent the legislative.
. A plenary session will then be convened where each group can
present its solution.
End of Session