Title
Guidelines on Use of Special Education Fund
Law
Letter Of Instructions No. 1462
Decision Date
May 31, 1985
A Philippine law aims to improve elementary education by enhancing the effectiveness of the Special Education Fund (SEF) through the establishment of a priority structure for fund allocation and the implementation of standards for teacher allowances and purchasing of textbooks and teaching materials.

Law Summary

Authorized Uses of the Special Education Fund

  • Organization and operation of extension classes for Grade I entrance, including staffing positions
  • Construction, repair, and site acquisition for elementary school buildings and vocational-technical facilities
  • Payment and adjustment of teachers’ benefits under R.A. No. 4670
  • Preparation, printing, and purchase of approved textbooks, teachers’ guides, forms, and pamphlets
  • Procurement and maintenance of equipment and apparatus for secondary vocational courses
  • Purchase of teaching materials for elementary and secondary education
  • Support for citizenship development programs in various alternative education settings
  • Promotion of physical education activities, including athletic meets

Priority and Allocation Guidelines

  • Priority activities differ between provinces (items d, c, e) and cities/municipalities (items a, c, d)
  • Secondary priorities cover other allowable activities
  • A strict priority system mandates meeting higher priority needs fully before allocating funds to lower-priority activities

Prohibited Uses and Limitations

  • No funding of salaries to non-elementary school teachers or officials outside specified positions
  • Prohibition on financing construction unrelated to school buildings or acquisition of motor vehicles
  • No allocation for maintenance of other government offices or sponsorship of fairs and contests

Personal Services and Personnel Provisions

  • Local School Boards to support extension positions until national budget absorption
  • Joint development by Budget and Education Ministries of standards and absorption mechanisms
  • Priority absorption of Local School Board extension positions into national budget
  • Allowance caps based on local government unit class: 100% (1st class), 75% (2nd/3rd class), 50% (4th and lower)
  • Definition of teachers restricted to those under the Magna Carta, excluding details in non-teacher roles
  • Limit on personal service expenditures to 60% of total Local School Board budget unless authorized

Textbooks and Instructional Materials Procurement

  • Priority for textbooks approved by the Textbook Board Secretariat
  • Purchase of materials exclusively through the Instructional Materials Corporation
  • Immediate operationalization of the Corporation using existing Textbook Board resources and staff without salary reduction

Financial Procedures and Support Mechanisms

  • Local government units may loan funds from their General and Trust Funds to cover Local School Board temporary deficiencies
  • Terms and conditions of loans subject to local government discretion

Budget Process and Enforcement

  • Budget proposals initiated by Division Superintendent or District Supervision member
  • Submission must adhere to the established priority system
  • The Commission on Audit and Office of Budget and Management to ensure compliance within their jurisdictions
  • The Minister of Budget to enforce guidelines in budget approval
  • The Commission on Audit to disallow non-compliant expenditures during audits

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