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IS THERE REALLY A BUDGET CUT? An Analysis of Government Financing for the University of the Philippines Recent calls made by progressive student organizations, including faculty and administrators of state universities and colleges (SUCs), most notable of which is the University of the Philippines (UP), have made the issue of a budget cut rise again. They assert that the present administration of President Benigno S. Aquino III has continued the tradition of his predecessor in slashing the budget allotted for the education sector, and basic social services in general. Is this true as is there really a budget cut? Or is there merely a blind analysis of the proposed budget? Policy Basis for Financing The rationale on how the government makes its budget for SUCs stems from a number of recommendations and laws. One of the most integrative recommendations of recent years was the report of the Congressional Commission on Education (EDCOM). The EDCOM provided for the overall assessment of POLICY GUIDELINE SALIENT FEATURES the education system Congressional Commission on Adopt a formula for determining shares and proposed of the tertiary education in the over-all administrative actions Education Report (1991) available and anticipated resources. on how to improve Republic Act No. 7722 or Higher education managed under education. Higher Education Act (1994) deregulated nature under Commission The EDCOM report on Higher Education. proposed that a SUCs can retain their incomes derived formula for Republic Act No. 8292 or from tuition and other fees. determining the budget Higher Education for tertiary education Modernization Act (1998) Moratorium on the creation of new be established. But this Presidential Commission on SUCs. Impose full-cost tuition in the formula has not been Educational Reform Report long run. promulgated. It also (1998) proposed a number of Republic Act No.

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