QuestionsQuestions (Republic Act No. 5447)
RA 5447 declares government policy to contribute to the financial support of education goals under the Constitution. It creates a Special Education Fund to be expended exclusively for specified Department of Education activities listed in Section 1.
The Fund is derived from (1) a portion of the taxes on Virginia-type cigarettes and duties on imported leaf tobacco, and (2) an additional tax on real property.
From the collection: local governments’ share is computed and set aside for distribution under existing law; 1% is retained by the BIR for enforcement (strip stamps, apparatus, equipment, modern methods). The balance is allocated as 10% to the national share of the Fund, 40% to the Philippine Virginia Tobacco Administration Tobacco Fund (RA 4115), and 50% to the general fund of the National Government (Section 3).
RA 5447 imposes an annual additional tax of 1% on the assessed value of real property in addition to the regular real property tax. If the total assessed valuation assessable to any one person is not in excess of PHP 3,000, the additional tax is not collected.
The total real property tax shall not exceed a maximum of 3%. (Section 4).
It is collected by the municipal or city treasurer where the real property is situated, using the basis of assessment already made or to be made under CA 470 and other applicable laws (Section 4).
In municipalities: 50% is retained by the municipality, 20% remitted to the provincial treasurer, and 30% remitted to the Treasurer of the Philippines for stabilizing the Special Education Fund (Section 4A).
In cities: 60% is retained by the city and 40% is remitted to the Treasurer of the Philippines for stabilizing the Special Education Fund (Section 4B).
A Provincial School Board is composed of: (1) Division Superintendent of Schools (Chairman), (2) Representative of the Provincial Governor, (3) Provincial Treasurer, (4) Representative of the Provincial Board chosen by the Board, and (5) President (or duly-elected representative) of the League of Parents-Teachers Associations (Section 5A).
Local school boards (provincial/city/municipal) determine annual budgetary needs and cost based on Education criteria, apply to the Bureau of Public Schools or Bureau of Vocational Education for shares in the Fund, authorize the treasurer to disburse funds pursuant to the approved budget, and perform other duties assigned by the bureaus (Section 6).
Each school board must prepare, not later than August 15 each year, the budget of receipts and expenditures for the ensuing fiscal year (Section 7).
Budgets are final and executory upon approval by the boards unless an appeal is taken within 15 days from approval to the Director of Public Schools or Director of Vocational Education. The deciding authority must make the final decision within 30 days upon receipt of the appeal (Section 7).
No portion of the collections may be transferred or diverted to the general or other funds, nor used or expended for any purpose other than those specified in RA 5447 (Section 9).
Municipal or city treasurers retain local shares and turn over the portions pertaining to provincial and/or National Government treasurers monthly within 15 days of every succeeding month (Section 9).
It is declared ministerial: the Budget Commissioner, Treasurer of the Philippines, treasurers, and relevant officials/employees must effect releases within 15 days from receipt of the order/authorization by the Secretary of Education for the National Government’s share and by the respective school boards for local shares (Section 9).
Any person who fails/refuses to turn over collections or delays/obstructs/prevents turnover; or fails/refuses to effect releases or delays/obstructs/prevents them; or orders/causes/effects diversion/transfer of Fund collections may be punished with a fine not exceeding PHP 10,000 or imprisonment not exceeding 6 years, or both. If the offender is a government official/employee, there is dismissal with prejudice to reinstatement and disqualification for election or appointment to public office (Section 11).
The Secretary of Education and Secretary of Finance, upon recommendation of the Directors of Public Schools and Vocational Education and the Treasurer of the Philippines, promulgate rules and regulations within their jurisdictions, to be published in three newspapers of general circulation and effective 15 days after publication (Section 10).
RA 5447 takes effect on January 1, 1969. The allocation under Section 3 is an exception and takes effect upon approval of the Act (Section 14).