May the DBM review end the budget conflict

One of the bitter conflicts between the legislative and executive branches in Mandaue City has centered on budgetary allocations. While the basic thorn is the divergent political affiliation creating outright divisiveness between the administration and the opposition, the heart of the feud is the rancor of losing.

And so, as long as losers are torn by the pain of defeat, they may harbor vengeful thoughts to get even. Chances are not made to pass in throwing monkey wrenches across the winner’s path, especially when the main loser has unusually inexhaustible purse.

That notwithstanding, that’s still par for the course in politics, i.e. Philippine style politics… Usually, the monkey wrenches are strewn in budgetary matters that may spell between success and failure of any administration vis-à-vis an opposition legislature.

The case of Mandaue City emerged as a typical example of the “gubot pa sa lukot” political merry-go-round all season. No surprise that one of the bones of contention has been the budget.

In the annual budget for 2008 (Appropriation Ordinance No. 11-2007-428), the Sangguniang Panlungsod (SP) staged an “exhibition” of sorts in virtually making its own budget. Instead of adhering to the fundamental budgetary principle of either approving or disapproving the proposed budget or any of its proposal, submitted by the executive as set by law, the SP practically re-made its own version.

For one, the SP introduced new items which were not part of the executive-prepared budget. As reviewed by DBM Secretary Rolando Andaya, Jr., “inclusion of said new items is prohibited, except to provide for statutory and contractual obligations…” Andaya’s rebuke is a budgetary principle long existing and honored.

For another, the SP made an ultra vires action, if not outright illegal, requiring the chief executive to secure an enabling resolution from the SP before disbursing the funds as approved in the budget. Again, Andaya admonished the SP that the local executive (the LGU mayor) is “vested with the responsibility for the execution of and accountability for the annual budget”.

Finally, the DBM Secretary stressed that the law (R.A. 7160) mandates that “disbursements shall be made in accordance with the annual appropriations ordinance without the prior approval of the sanggunian”.

Another flaw of the AO 11-2007-428 rectified by the DBM review concerns the new position of Chief of Hospital. Instead of starting from Step 1 (in a salary scale of Step 1 to Step 8), said position was conferred a salary of Step 4. If only all concerned in making and enacting the budget were amply knowledgeable, they would have known that such salary hurdle to Step 4 (“nanlaktud” in Cebuano) is taboo under the principle of the standardized compensation and position classification system.

Remember the same blunder of a previous SP of Mandaue pegging the salary of its members and the VM shooting to Step 8? And it’s this blunder that resulted in over-payments to the SP members and VM last, by some hundreds of thousands in unpaid liability each.

Incidentally, the financial aid of P5M to the bonafide Mandaue City College being run by Dr. Susana B. Cabahug, can now be released. The DBM review is specific that the ordinance “should recognize the authority of the local chief executive to execute the budget pursuant to the aforementioned Section 320 of the Code”.

It’s thus hopefully foreseen that the P731M annual budget for 2009 submitted by Mayor Jonas Cortes, will find some smooth sailing, considering the review rulings of the DBM on the basic principles on budget making and the enactment of appropriations ordinances.

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