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Responding to the Commission on Higher Education’s (CHED) recent statement saying that Kabataan Partylist Rep. Raymond Palatino is “belittling” the increase in the budget for state universities and colleges (SUCs) for 2013, Palatino reiterated that the funds for the country’s 110 public higher education institutions are still “grossly insufficient.”

In a statement released on August 17, CHED Chair Patricia Licuanan said, “The 2013 SUCs budget may not be enough. But it is a substantial increase and is good for now.”

“No less than CHED itself has said that the P37.1 billion proposed SUCs budget for 2013 is still insufficient. The government knows that it is not doing enough for public tertiary education,” Palatino said.

Old debate on MPBF

For 2013, SUCs are set to receive P37.1 billion, up by almost 44 percent or P11.3 billion from the current P25.8 billion budget.

In a statement released last Tuesday, Palatino criticized the P37.1 billion SUCs budget, citing the Department of Budget and Management’s data which revealed that not the entire amount goes directly to the operations of SUCs, as parts of the said budget are allotted for Retirement and Life Insurance Premiums (RLIP) and the Miscellaneous Personnel Benefits Fund (MPBF). (See Table 1)

If funds from the RLIP and MPBF are removed, SUCs are set to receive only P32.77 billion for direct use.

Licuanan explained that while “it is true that the RLIP cannot be used directly by the SUCs since it is disbursed by GSIS, its employees will benefit from it.” She added that the MPBF can also be accessed by SUCs to hire new personnel and fill up vacant positions.

“Bottom line is, the entire 37.1 billion will eventually redound to the SUCs, for their operations, facilities and employees,” Licuanan said.

Palatino reasserted his argument regarding the 2013 SUCs budget. “We are not saying that SUCs will never get the funds from RLIP and MPBF. What we are explaining is that these funds don’t go directly to the day-to-day operations and development of our state universities,” the youth solon said.

Moreover, Palatino explained that getting the funds for MPBF is “not as easy as Dr. Licuanan explains.” “Requesting for additional teaching and personnel items from DBM is an entirely cumbersome process, which the budget agency totally controls. It is like Secretary Florencio Abad’s own pork barrel, which his agency can dispense at its own whim,” Palatino said.

“Proof of this is the fact that many SUCs find it difficult to request additional items from DBM, resulting to DBM rechanneling their funds for vacant positions to the MPBF year after year,” Palatino added.

Before DBM’s strict policy on unfilled positions was implemented during the Aquino administration, SUCs, by practice, retain the said funds in their respective budget as savings, which in turn are reprogrammed to other essential needs that lack funding.

In the preparation for the 2011 national budget, DBM stopped the said practice for funds from unfilled positions, explaining that this is one of the causes of graft and corruption, especially in the military. Instead, the budget agency has rechanneled the said funds to the MPBF since then.

“Many government agencies have decried this policy since its inception. This is an old issue,” Palatino said.

Insufficient budget

Palatino reiterated Kabataan Partylist’s stand that the P37.1-billion DBM-proposed budget for SUCs is still far from the actual needs of public tertiary schools.

Data from DBM reveal that SUCs requested a total of P54.6 billion for 2013, of which only 68 percent or P37.1 billion was approved for inclusion in the National Expenditure Program. (See Table 2)

The said data reveal that the P37.1 billion DBM-approved budget for SUCs next year is actually P17.5 billion less than the actual need of SUCs.

“This is a fact that neither DBM nor CHED cannot deny. Despite the 44 percent increase in next year’s allocation, the budget for SUCs is still not enough,” Palatino said. In particular, he noted that DBM only approved P3.37 billion or almost 23 percent of the P14.95 proposed budget for capital outlay, the fund for the construction of new infrastructure.

Palatino also criticized CHED’s statement that DBM actually allotted P3 billion for CO this year under the Disbursement Acceleration Program (DAP). “The funds from the DAP came from the government’s savings and was not part of the legislated General Appropriations Act for 2012. What does this mean? The government has not intended to put funds for SUCs’ CO in the first place, and only gave it as an afterthought,” Palatino explained.

Also, the DAP is released only to SUCs that comply with CHED’s Roadmap to Public Higher Education Reform. “The DAP is not a free meal. Reading through the fine print reveals that it is a budget that would only further the commercialized nature of SUCs,” Palatino said.

Recognize student power

“It is a known fact that DBM announced the additional budget for SUCs this year after massive student strikes last year. It is very clear that the government is trying to cover up their own faults,” Palatino said.

In the past two years, students from various higher education institutions nationwide launched strikes and large mobilizations to call on the government to allot greater state subsidy for education.

“The students’ vehement opposition to budget cuts and their assertion for greater state subsidy was the primary reason why the government backtracked on its policy of reducing state subsidy to SUCs,” Palatino said.

In his 2011 budget message, President Benigno Aquino III said, “We are gradually reducing the subsidy to SUCs to push them toward becoming self-sufficient and financially independent, given their ability to raise their income and to utilize it for their programs and projects.”

However, this year, Aquino seemingly backtracked, saying in his 2013 budget message, “Hindi po pinababayaan ng aking administrasyon ang ating mga pampublikong pamantasan, at higit sa lahat, ang mga iskolar ng bayan.”

“The nominal increase for next year is not manna from heaven that we have to thank the Aquino administration for. It is the result of the militant collective effort of students and school administrations,” Palatino said.

“Why should we thank P-Noy for this cover-up budget? This is not what students have demanded in the first place,” Palatino added.

Worst higher ed investor in Asia

“When we say the budget is not enough, we have to contextualize. We have to compare it to the budget other countries give to their state universities,” Palatino said.

According to a study conducted by the Congressional Policy and Budget Research Department, the Philippines is one of the countries in Asia with the lowest per capita spending per student in college. The government only spends an average of $625 per college student per year, far below the average per capita spending for college students in China ($2,728), Malaysia ($11,790), and Indonesia ($666). Philippine spending per college student is only higher nominally than India’s $406.

Also, the P37.1 billion proposed budget is only 0.31 percent of the country’s estimated gross domestic product (GDP) for 2013. Meanwhile, 16.8 percent of the GDP will go to debt servicing next year.

“Dr. Licuanan is right when she said the budget for SUCs is not enough. But saying that the budget is ‘good for now’ reeks of misplaced complacency,” Palatino said.

Smokescreen to tuition increase

Palatino also called the increase in the 2013 budget a “smokescreen to tuition increase,” noting data from DBM’s Budget of Expenditures and Sources of Financing, wherein the budget agency expects an almost P1-billion increase in the internal income of SUCs, to P14 billion from the current P13.1 billion.

Part of the projected increase in income, or P500 million will come from tuition payments, which is expected to increase to P6.76 billion from the current P6.26 billion. Also, DBM projects that income from other fees would increase by P200 million, to P3.2 billion from the current P3 billion.

“This is a clear indication that behind the supposed increase in the budget of SUCs, spiralling tuition rates will remain and would even intensify. DBM’s projections are already telling,” Palatino said.

“It is clear that the nominal increase for SUCs does not change the government’s policy on higher education. As such, the youth will continue and even intensify the fight for sufficient government funding for an education sector that truly serves the nation,” Palatino ended.###

 Table 1. Details of the 2013 DBM-proposed budget for SUCs

Direct to SUCs	₱ 32,771,509,000
Miscellaneous Personnel Benefit Fund	₱ 2,203,235,000
Retirement and Life Insurance Premiums	₱ 2,153,221,000
TOTAL	₱ 37,127,965,000

 Source: DBM

Table 2. Proposed versus DBM-approved 2013 SUCs budget

	Proposed by SUCs	Recommended by DBM	Percent approved
PS*	₱31.149 B	₱27.333 B	87.75
MOOE	₱ 8.506 B	₱6.429 B	75.58
CO	₱14.958 B	₱3.365 B	22.5
TOTAL	₱54.613 B	₱37.127 B	67.98

*Includes funds for RLIP

Source: DBM