SENATOR Sherwin Gatchalian is advocating for the expansion of the Special Education Fund (SEF) and the implementation of transparency mechanisms to ensure its more efficient use.

Gatchalian’s proposal is outlined in the 21st Century School Boards Act, or Senate Bill No. 155, which aims to strengthen local government units’ (LGUs) involvement in education. The bill seeks to expand the local school board’s responsibilities to include the formulation of policies aimed at improving education quality.

The 2023 Commission on Audit reports revealed that millions of pesos allocated for improving public education in Metro Manila have either remained unutilized or been improperly spent by several LGUs.

Gatchalian explained that under the proposed measure, the expanded use of SEF would include funding for teacher and non-teaching personnel salaries in public schools, salaries for preschool teachers, honorariums and allowances for additional services rendered outside regular school hours, capital outlay for preschools, and the operation and maintenance of Alternative Learning System (ALS) programs, among other things.

An analysis by the Second Congressional Commission on Education (EDCOM II) revealed that from 2018 to 2022, SEF underutilization amounted to P15 billion. The analysis also found that the highest underutilization rate—57%—was observed in cities.

The Bureau of Local Government Finance identified procurement issues and limitations on allowable fund use as primary reasons for SEF underutilization.

As prescribed by the Local Government Code of 1991 (Republic Act No. 7160), SEF is allocated to local school boards to cover the operation and maintenance of public schools, including the construction and repair of school buildings. SEF is generated from an additional one percent tax on real property.

Gatchalian’s proposed measure would mandate local school boards to establish a transparency board and a web portal to report information on the following: actual SEF collection and utilization during the budget year, quarterly reports of realized SEF income, expenditures, and balances, the actual SEF income and expenditures from the preceding fiscal year, and the schedule of classroom construction under the school building program, among others.