CHED: Budget cut report misleading

MANILA, Philippines - The Commission on Higher Education (CHED) said yesterday the reports about the budget cut for 59 of the 114 state universities and colleges (SUCs) are inaccurate and misleading, making it appear that more schools are facing budget cuts in next year’s budget.

CHED Chairman Patricia Licuanan clarified that only 10 SUCs may face funding cuts in 2016.

She explained that the reduction in maintenance and other operating expenses or MOOE funds is due to the removal of the “congressional insertions” in the budget of some SUCs.

“The MOOE reductions are due to the lowering of the Tulong Dunong Program (Grants-in-Aid) allotments for 2016,” Licuanan said.

The program was instituted after the removal of the pork barrel system in Congress. It enables lawmakers to recommend to CHED their constituents whom they want to be under the government’s scholarship program.

Of the 10 SUCs that will face funding decreases, CHED said the Philippine Normal University (PNU) faces the biggest reduction at 19 percent. It is followed by the UP System with a 16 percent decrease.

“In the case of PNU, the decrease is due to a one-time congressional insertion in 2015 of P100 million and its low utilization rate,” Licuanan said.

She also explained that the P2.2-billion decrease in the UP budget is due to the one-time allotment that it received this year for the purchase of P3.1-billion medical equipment for the Philippine General Hospital, which is attached to UP Manila.

“Without this one-time allocation in 2015, UP’s 2016 budget actually increased by almost P1 billion,” she added.

Budget Secretary Florencio Abad explained that UP does not need a bigger capital outlay (CO) allocation for next year since most of its building and other infrastructure projects would be completed this year.

Licuanan also said that the three SUCs that have no CO – the Marikina Polytechnic College, Bulacan State University and Cagayan State University – have absorptive capacity issues or need to align their CO investments with government priorities.

“The education budget has grown tremendously under the Aquino administration,” Licuanan maintained. “The budget of SUCs actually doubled from P23.8 billion in 2010 to an all-time high of P46 billion in 2016.”

“CHED issues a call against disinformation on the SUCs’ budget… Since 2010, CHED has worked together with the Department of Budget and Management in crafting an annual budget that incrementally boosts the operational capacity of our SUCs in order to ensure quality tertiary education for young Filipinos,” she added.

Abad also said Malacañang would like SUCs to spend more than P20 billion in accumulated savings before giving them more money.

Davao City Rep. Isidro Ungab, chair of the appropriations committee, does not encourage members of his panel and of the House to fight for budgetary increases for government agencies.

“Since we cannot go beyond the budget ceiling proposed by the President, any increase in one agency would be the loss of another. We take some funds from one agency and give it to another agency. As much as possible, we do not want to do that. We can be accused of favoritism,” he explained.

Ungab said Aquino does not like this to happen as it alters the administration’s budgetary priorities.

In fact, Ungab added, the President has dissuaded agency officials from lobbying for budget increases from the House and the Senate.

More funds for SUCs

A lawmaker yesterday urged the House of Representatives to allot more funds for the 114 SUCs throughout the country.

Pasig City Rep. Roman Romulo noted that the Constitution mandates Congress to give the highest budgetary allocation to education.

“I will fight for the increase in the budget of our SUCs in order to guarantee accessibility and quality of higher education in this country, thereby making our graduates more competitive for employment. More funds will lead to better education for our students,” he added.

On Wednesday, Rep. Terry Ridon of party-list group Kabataan told his colleagues in the House appropriations committee that 59 of the 114 SUCs would suffer reduction in MOOE for 2016, while another 40 would suffer decreases in CO for 2016.

Ridon pointed out that while total appropriations for state schools would go up by P1.5 billion, from P42.3 billion this year to P43.8 billion next year, the increase would be eaten up by adjustments in salaries.

He said the reductions would be taken from funds for MOOE and CO, which represent buildings, other infrastructure projects and equipment. Those that would suffer cuts include the University of the Philippines, which would lose more than P2 billion in CO funds.

Romulo said the reduction in provisions for MOOE and CO “will have a tremendous negative impact on the operations, plans and programs of state schools which will ultimately prejudice our students.” 

“The reduction can cast doubts on the sincerity of the administration in giving education top budgetary priority,” he added. – Jess Diaz