Case Summary (G.R. No. 127301)
Background Facts
The City Government of Cebu enacted Ordinance No. 1468 to grant additional allowances exceeding P1,000 per month to the judges and prosecutors. This ordinance contravened Local Budget Circular No. 55 issued by the DBM. A subsequent audit by Cebu City Auditor Atty. Carmelita P. Cabahug disallowed these allowances based on the Circular's provisions. Petitioners contended that Ordinance No. 1468 was intended to cover salary adjustments for city officials, while respondents argued that it contradicted existing regulations.
Applicable Law
The case primarily revolves around the provisions of Republic Act No. 6758, the Compensation and Position Classification Act of 1989, which mandates that salary increments be based on performance merit and length of service rather than arbitrary increases. Regional Memorandum Circular No. 92-1, also issued by the DBM, supports this regulation and disallows any salary increments not grounded in merit.
Court of Appeals Decision
The Court of Appeals (CA) concluded in its decision dated February 22, 1996, that the DBM's local budget circulars and memoranda were valid. It affirmed the legality of Circular No. 55 and Regional Memorandum Circular No. 92-1, thereby denying the City Government's assertions that such restrictions conflicted with their local autonomy. The CA reasoned that while local government units possess the authority to determine compensation, these decisions must conform to governing laws.
Clarification Motion by Petitioners
Following the CA's decision, the DBM filed a motion for clarification regarding the validity of Cebu City Ordinance No. 1468, citing apparent conflicts with Bulletin No. 10 of the Joint Commission on Local Government Personnel Administration. The CA denied the clarification motion, stating that it was untimely and effectively served as a motion for reconsideration.
Ruling on the Clarification Motion
In reviewing the DBM's claims, the Supreme Court noted that Ordinance No. 1468 merely addressed appropriations for salary adjustments, not modifications to salary grades, and emphasized that the classifications for government positions must align with Joint Commission Circulars and relevant bulletins. The Court recognized the validity of Ordinance No. 1468 while also reiterating the necessity to adhere to established criteria in determining salary grades.
Conclusion
The Supreme Court ultimatel
...continue readingCase Syllabus (G.R. No. 127301)
Case Overview
- This case concerns a petition for review on certiorari regarding a resolution of the Court of Appeals (CA) dated November 20, 1996.
- The CA's resolution denied the petitioners' motion for clarification of its earlier decision promulgated on February 22, 1996.
- The petitioners are the Department of Budget and Management (DBM) and its Secretary, Salvador M. Enriquez, Jr.
- The respondent is the City Government of Cebu.
Factual Background
- The City Government of Cebu passed an appropriation ordinance granting additional allowances to judges and fiscals exceeding P1,000 monthly.
- Atty. Carmelita P. Cabahug, the City Auditor of Cebu, disallowed these allowances in a post-audit as violating Local Budget Circular No. 55.
- Ordinance No. 1468 was approved on August 9, 1993, to provide salary adjustments for department heads and assistant department heads.
- Petitioners claimed this ordinance violated DBM Regional Memorandum Circular No. 92-1, which prohibited one-time full implementations of salary step increases.
- Ordinance No. 1450 was also passed, abolishing positions of Legal Officers III and IV, creating Assistant City Attorneys with higher salaries.
- The DBM Secretary disallowed the salary reclassification proposed in Ordinance No. 1450, citing issues of salary grade overlap.
Procedural History
- The City Government of Cebu filed a petition for certiorari questioning the legality of multiple budget circulars and ordinances affecting compensation.
- The CA denied the petition for lack of merit in its Fe