Government Conveners

Non-Government Conveners

• Department of the Interior and Local Government (DILG)
• Department of Budget and Management (DBM)

• CODE-NGO, PH-OGP Secretariat

TOPIC

RESOURCE PERSON

Reactors

POSSIBLE DISCUSSION POINTS

PART 1: Information, Education and Communication (IEC) Campaign

Webinar #1: Exploring the implications of greater fiscal decentralization

Objective:

To aid the non-government sector in understanding the extent of the planned reforms on fiscal decentralization and its implications to public service delivery at the national and local levels.

DBM, DOF

N/A

• What is the Mandanas-Garcia Supreme Court Ruling? What is its fiscal impact?
• What is the National Tax Allotment (NTA)? How is it determined? What are the guidelines for utilizing the NTA? How will the NTA increase be allocated across different LGUs?
• What are the implications of the SC ruling on the NG and LGUs?
• What are the implications of fiscal decentralization for Civil Society Organizations?

Webinar #2: Navigating the New Governance Landscape

Objective:

To explore the implications of Executive Order No. 138 on the roles of national and local governments

DBM/DILG

NGOs (e.g., Development Partner, Academe etc)

• What are the salient features of Executive Order No. 138 and its IRR?
• What are the guidelines for the creation of the devolution transition plans (DTPs) of the NGAs and LGUs?
• What support can the LGUs expect from the national government?
• What are the implications of the full devolution to Civil Society Organizations?

PART 2: Defining Citizen Engagement under a Decentralized Landscape*

Webinar #3: Enhancing Citizen’s Trust in Public Service

Objective:

To explore avenues for the government and non-government sectors to enhance political efficacy (i.e., citizen’s trust that participation platforms will deliver resources) in the context of the greater fiscal decentralization

Development Partner and LGU Champions

NGOs and/or NGAs

• How can the government and non-government sector work together to improve trust in the implementation of fiscal decentralization?
• What best practices of trust-building between government and CSOs can we learn from?

Webinar #4: Milestones of Citizen Participation in Governance in the Coming Decade

Objective:

Government and Non-Government Representatives should discuss the roles and capacities that civil-society should play in the coming decade with the implementation of greater fiscal decentralization.

NGOs and NGAs

N/A

• What skills and capacities should CSOs build up in response to the shift towards greater fiscal decentralization?
• What milestones should CSOs strive towards?
• How can CSOs help foster greater citizen participation in governance?

Allotted Time

Activity

10 minutes

Preliminaries

5 Minute

Overview of the FT Webinar Series

5 Minutes

Welcome Remarks by PH-OGP Chair

5 Minutes

Discussion of House Rules and Program Flow

15 Minutes

Presentation of Resource Person A

15 Minutes

Presentation of Resource Person B

15 Minutes

Presentation of Reactor

1 hour

Open Forum

5 Minutes

Wrap Up & Synthesis

5 Minutes

Closing Remarks by PH-OGP Co-Chair

Date

Time

Session

Session Design

Register

Replay

Presentations

May 20, 2021

2:00 PM to 4:00 PM

IRA Noon at Ngayon: Alamin ang Magbabago!

closed

August 20, 2021

2:00 PM to 4:30 PM

Alamin ang Magbabago: Debolusyon at Transisyon sa Ilalim ng Mandanas-Garcia Case Supreme Court Ruling

closed

Role

Agency / Organization

Resource Speaker

Welcome Remarks

Department of Budget and Management

Secretary Wendel Avisado

Moderator

Coalition for Bicol Development

Ms. Aurora Chavez

Resource Speakers

Department of Budget and Management

Undersecretary Kim Robert De Leon

Department of Finance

Assistant Secretary Ma. Teresa Habitan

Panelists

Department of Budget and Management

Undersecretary Laura Pascua

Undersecretary Herman Jumilla

Ms. Rowena Marte

Department of the Interior and Local Government

Director Anna Liza Bonagua

Closing Remarks

Public Services Labor Independent Confederation – National Public Workers’ Congress (PSLINK-PUBLIK)

Dr. Annie Enriquez Geron

Youtube Replay

Facebook Replay

Session Design

Presentation

Poll Questions

Nakatulong baa ng session na ito para mas maintindihan MOA ng pagbabago ng IRA simula 2022?

1.      75% - Oo

2.      0% - Hindi

3.      25% - Kailangan ko pa ng karagdagang impormasyon

Naniniwala k aba ng malaki ang papel na gagampanan ng CSOs at LGUs dahil sa Mandanas Ruling para maihatid  ang mga serbisyong kinakailangan ng mamamayan?

1.      91% - Oo

2.      0% - Hindi

3.      9% - Kailangan ko pa ng karagdagang impormasyon

Interesado ka bang patuloy na makibahagi sa mga susunod  na mga talakayan tungkol sa  implikasyon  ng Mandanas Ruling?

1.      100% - Oo

2.      0% - Hindi

n/a

How will the government ensure equity of IRA in the light of the Mandanas ruling?

Asst. Secretary Ma. Teresa Habitan: Meron naman pong nakalagay sa LGC kung papano ididistribute ang IRA or yung NTA. Susundin naten iyon kung magkano mapupunta sa mga probinsya, cities, municipalities at barangays as presented earlier.

Asst. Secretary Kim Robert De Leon: As far as the computation is concerned even with the increased, we are still governed by the formula under the Local Government Code that takes into consideration factors like land area, population, and equal sharing.

Concerns addressed during the open forum.

When is the release of 2022 IRA for LGU?

Undersecretary Herman Jumilla: We have drafted the local budget memorandum for the indicative 2022 NTA shares but we are still waiting for the DOF endorse certification of BIR, BOC, and BTr para macompute ang individual shares ng LGUs. Ang local memorandum po ay pwede naten mailabas bago mag June 15.

Concerns addressed during the open forum.

How is the National Government preparing the LGUs for the Mandanas ruling?

Dir. Ana Liza Bonagua, DILG:

Director Anna Liza Bonagua: The national government agency led by the DBM in coordination with other oversight agency such as DOF and NEDA, have conducted several orientations, consultation and FGDs, with LGUs on the impact of the ruling and necessary preparation that have to put in place in full assumption of the devolved function so that there will be no gap in the delivery of services to our constituents.

The DILG led by the LGA is tasked to harmonized the capacity development interventions for LGUs and strategies for capacity building were already developed providing a framework that is responsive. This framework classifies the LGU according to quadrant depending on their capacity and performance. The capacity development intervention will be based on the capacity development agenda of the LGU which they prepared.

The DBM, DILG with PCOO will also be mounting an information campaign very soon to inform the LGU and the public on the impact of the SC ruling to the services for the public.

Concerns addressed during the open forum.

Please elaborate on the utilization guidelines or menu.

Asst Secretary Kim Robert De Leon: There is no menu that will be given to LGUs. The existing statutory requirements and guidelines shall only be applied and only the base will be changed.

Concerns addressed during the open forum.

When is the possible issuance of local budget memo for the LGUs? Can we expect specific PPAs to be devolved to the LGUs for the increased NTA?

Undersecretary Herman Jumilla: We hope to release them before June 15.

Concerns addressed during the open forum.

Kasama po ba ang mga barangay sa Mandas-Garcia case ruling sa IRA?

Undersecretary Herman Jumilla: Yes, kasama po ang smallest political unit of the LGU which is the barangay.

Concerns addressed during the open forum.

When will the Executive Order on the full devolution be released or signed?

Asst. Secretary Kim Robert De Leon: We are hoping to have it released before the end of this month as we already submitted it to the Office of the President.

Concerns addressed during the open forum.

What about the coastal water areas in the computation of the ratio on the use of NTA aside from land area?

Ms. Rowena Marte: Pinaguuysapan pa po ang coastal water are since land area po ang basis naten.

Concerns addressed during the open forum.

Can the share from the real estate tax be given additional funds as a result of the Mandanas law to help resolve the education deficits in respective towns or cities especially those in the last mile learners and those marginalized excluded and vulnerable learners outside of the LMS areas?

Asst. Secretary Ma. Teresa Habitan: Allow the expansion of the use of these funds to more areas connected to education (e.g. improvement of school facilities).

Concerns addressed during the open forum.

Can also DBM give us an estimated IRA for 2023? It’s a critical year for LGUs especially with the effect of the pandemic and national collection.

Asst. Secretary Ma. Teresa Habitan: Malaki po ang binagsak ng collection noong 2020. In short, sa 2023, yung absolute amount of NTA that is going to be distributed to LGUs an base ay 2020, ay bababa kaysa sa makukuha nila sa 2022.

Concerns addressed during the open forum.

Localization is great especially increasing the base budget for LGUs, how can DILG and DBM ensure that it will not result to massive corruption in the local level?

Director Anna Liza Bonagua: Kahit maliit or malaki anf resources, we have to ensure that resources are put in good use and utilized properly in accordance with government rules and regulations and in appropriate programs and projects and interventions.

There are several measures in place to abate irregularities such as the Seal of Good Local Governance, financial management assessment tool and the score ng bayan or the financial sustainability index of the DOF.

Undersecretary Laura Pascua: Since 2020, yung training of procurement of the LGUs ay tinututukan. Through LGA, the newly elected officials were trained on procurement and how to plan.

The government procurement policy board is really targeting number of LGUs to be mainstreamed into the procurement rules and regulations.

Concerns addressed during the open forum.

Will the Personnel Services cap be maintained? If so, how will the Mandanas ruling ensure that qualified and adequate staff to implement the full devolution of at least eight public services, the number of contract services, job orders and other kinds of workers has increased?

Ms. Rowena Marte: For 2022, we are proposing to have a provision in our GAA to waive the PS expenditures to personnel who will be hired by the LGUs to implement the services.

Concerns addressed during the open forum.

The NGAs are already done with the indicative plan and budget for FY 2022, will there still be additional budget in connection with the Mandanas-Garcia SC ruling?

Undersecretary Laura Pascua: We’ve got to really reduce the programs and projects going to the local government projects na ginagawa ng NGAs para we can accommodate other priorities (e.g. strengthening Health, provision of additional vaccines and booster shots. Mahigpit ang fiscal space namen for 2022.

Concerns addressed during the open forum.

Ang understanding ko po sa national sharing ay provinces ay 23%, cities 23%, municipalities 20%, and national 34%, with these sharing, nothing in there clearly speaks the sharing sa barangay. Paano po madedetermine ang share ng barangay?

Asst. Secretary Ma. Teresa Habitan: Based on my data, 23% for provinces, 23% for cities, 34% for municipalities, 20% for barangay, overall 100% of the 40% share of the national government.

Concerns addressed during the open forum.

Do you think the increase in NTA shares of every LGUs will be enough to carry out those devolved functions or might be an additional expenditure on the LGUs?

Director Anna Liza Bonagua: For the implementation of the SC ruling, the oversight agency led by DBM is thinking of another facility provide some equity in the resources for the LGUs and that is the growth equity fund.

Undersecretary Laura Pascua: The LGUs should prioritize the programs for their constituents by looking at their 3-year forecast of their NTA.

Asst. Secretary Ma. Teresa Habitan: It’s also fair that some additional burden will be required to be shared by the LGUs and the national government is always open to help the LGUs to be able for them to respond the needs of their constituents.

Concerns addressed during the open forum.

So dadami ang share ng LGU sa national revenue pero kakargahan naman sila ng pagkaraming pagkakagastusan  sa pag devolve ng maraming services. Parang defeated yata ang purpose ng ruling for LGUs to have a bigger share.

Director Anna Liza Bonagua: For 30 years of devolution, the national government continue to support programs and projects in support of local government service delivery.

The national government has to trim down some of its PPA particularly those encompassing devolved services. Hindi po iniiwan ng national government ang LGU, the national government will focus capacity building and technical assistance to LGUs.

Undersecretary Laura Pascua: We are looking on this Mandanas ruling as an opportunity to be able to shift the focus of NGA from doing the rowing task of implementing local projects which will duplicate the efforts towards devolution. We are looking for this opportunity for the NGA to level up focusing on the national problems.

We will empower the LGUs to do devolved activities under the local government code.

Concerns addressed during the open forum.

With islands and wide area of municipal waters are clamoring, they cannot provide ecosystem support services during the IRA implementation. Hope to consider municipal coastal and marine waters in the inclusion in the NTA computation as urgent.

Undersecretary Laura Pascua: There’s been a move in congress to review the IRA formula, I think that is the venue that we can advocate to consider the coastal waters. Kailangan may change ng batas para maiba yung formula at yung share.

Concerns addressed during the open forum.

Will there be additioal guidelines/requirements in the mandated LGU plans in light of the full devolution? Is the rationalization of these plans part of the transitional activities? 

Department of the Interior and Local Government (DILG)

The Department confirms the possibility given the increasing demands and expectations from local governments and the necessity to introduce and operationalize policy reforms, systems, and mechanisms necessary to ensure local government unit (LGU) responsiveness to the needs of constituencies under a devolved set-up.

The Supreme Court Ruling implementation requires stronger national guidance, performance monitoring, and institutionalization of incentive and redinstributive mechanisms to ensure seamless LGU assumption of devolved functions/ responsibilities that the National Government (NG) will discontinue or downscale. 

Section 11 of Executive Order (EO) No. 138 particularly acknowledged the importance and the need to further strengthen vertical and horizontal linkages across different levels of government in development planning, investment programming, and budgeting. The transition to full devolution also emphasized the need to measure LGU performance based on NG established standards. It called for the enhancement of NG-LGU capacities necessary to increase LGU capacities for the eventual shift/transfer of responsibilities from central to subnational governments as intended by the 1991 Local Government Code (LGC) and other relevant laws. 

It should be mentioned however that even prior to the Supreme Court decision on the Mandanas and Garcia petitions, the four (4) Public Financial Management (PFM) Oversight Agencies: DILG, NEDA, DBM, DOF already issued Joint Memorandum Circular (JMC) No. 1 Series of 20071that prescribed strategies to strengthen planning, budgeting, and expenditure management linkages; and clarified delineation of responsibilities among planning agencies that paved the way for the Rationalized Planning System (RPS). New tools, systems, and strategies to enhance PFM systems were subsequently introduced through DILG-NEDA-DBM-DOF JMC No. 1 Series of 20162.

In light of the implementation of the Supreme Court Ruling in FY 2022, the four (4) PFM Oversight Agencies continues to pursue updating of DILG-NEDA-DBM-DOF JMC No. 1 Series of 2016 to make it more attuned to the requirements of the transition to full devolution as provided under EO No. 138.

All of these policy reforms and tools are anchored on LGC provisions and pertinent laws that prescribe the local PFM processes.

The timing of the Supreme Court Ruling implementation is particularly strategic with the advent of the pandemic, national elections in FY 2022, a new Philippine Development Plan (PDP) and LGU Devolution Transition Plans (DTPs) defining strategic priorities and direction of LGUs. These are expected to inform and influence the updating of the Barangay Development Plans (BDPs) in the case of barangays, Comprehensive Development Plans (CDPs) in the case of cities and municipalities, and the Provincial Development and Physical Framework Plans (PDPFPs) in the case of provinces consistent with existing policies. This shall ensure that the development trajectory and strategic priorities of LGUs will consider the evolving local governance landscape during transition.

In summary, the foundational policies have been established and existing systems are in place as provided under the 1991 LGC and other pertinent laws but transition to full devolution demands that LGUs adapt, and adjust in order to meet the requirements for transition. The Department however, given its mandate, shall accordingly introduce policy reforms, systems, and mechanisms that could better assist LGUs in order to attain full devolution by FY 2025.

Concerns answered through a letter/email response.

Is there a possibility that the implementation of the Mandanas ruling in 2022 may be delayed due to lower revenue collections of the Bureau of Internal Revenue and Bureau of Customs because of the pandemic?

Department of Budget and Management (DBM)

We would like to emphasize that on June 10, Mandanas 2019, the Supreme Court (SC) Ruling on the Mandanas-Garcia case is already final and executory. Thus, we opine that the said SC Ruling, insofar as the adjustments in the use of the computation of the National Tax Allotment (NTA) shares of local government units (LGs), should already be implemented starting FY 2022.

Accordingly, the Department of Budget and Management has already issued Local Budget Memorandum No. 82 and 82-A dated June 14, 2021 and August 19, 2021, respectively, informing the LGU of their FY 2022 NTA shares, of which base computation already included all national taxes collected by the Bureau of Internal Revenue, customs duties collected by the Bureau of Customs and taxes collected by other collecting agencies pursuant to the SC Ruling.

As regards the implementation of the full devolution measure pursuant to Executive Order (EO) No. 138 dated June 1, 2021, which is the measure adopted the National Government to cushion or mitigate the fiscal impact of the SC Ruling, will be implemented in three years, from FY 2022-2024. Any adjustment or modification in the phasing of the Full devolution will depend on the policy direction of the next Administration.

Concerns answered through a letter/email response.

Kung tataas ang IRA share, tataas rin po ba ang allocations sa 20% Development Fund (DF), disaster fund, senior, Persons with Disability (PWD), at Local Councils for the Protection of Children (LCPC)?

Department of Budget and Management (DBM)

Any increase in the NTA share of LGUs shall correspond to an increase in the required allocation for the following budgetary items:

1. 20% DF pursuant to Section 287 of RA No. 7160[1]; and
2. Funds for the programs, projects, and activities of the LCPC per Section 15 of RA No. 9344[2].

Moreover, since NTA is part of the regular income sources of LGUs, other allocations, such as the Local Disaster Risk Reduction and Management Fund[3], and other mandatory appropriations in LGU budgets, will likewise result to an increase due to the increase in the NTA shares of LGUs.

Concerns answered through a letter/email response.

Magkakaroon ng reduction/ displacement of workforce sa mga NGAs dahil sa full devolution and incompliance with the SC Ruling on the Mandanas case. May consultations ba na gagawin with the public sector unions? Dapat ma-involve rin ang mga public sector unions sa development ng transition plans

Department of Budget and Management (DBM)

Section 38, Rule XII of the Implementing Rules and Regulations (IRR) of EO No. 138 provides for the roles of the Civil Society Organizations (CSOs). The same Section of the IRR encourages the Non-Government Organizations, CSOs, and People’s Organizations to participate in the preparation, implementation, and monitoring of the Devolution Transition Plans (DTPs) of the National Government Agencies (NGAs) and the LGUs through consultations and public dialogues.

It is to be emphasized that it is the responsibility of the NGAs and LGUs concerned to ensure that their DTPs have undergone consultation with CSOs prior to implementation.

Moreover, the representation of CSOs in the LGU Devolution Transition Committee, as provided under Section 15, Rule V of the IRR of EO No. 138, provides an opportunity for the greater participation.

Concerns answered through a letter/email response.

Indigenous Cultural Communities had been marginalized in terms of PAPs and budgets in the past and until recently that led to massive poverty. Do they have opportunities with this new sharing scheme of the government?

Department of Budget and Management (DBM)

Since LGUs have more financial capacity to deliver basic services and facilities, there will be more opportunities for them to development more projects which could support indigenous cultural communities.

Likewise, the ICC may actively participate in the preparation of the DTPs and planning processes of the LGUs so that their concerns may be heard and accordingly considered by the LGUs concerned.

Concerns answered through a letter/email response.

When can the LGU expect the LBM issuance from DBM for budget preparation for CY 2022, which includes the computation of actual IRA per LGU?

Department of Budget and Management (DBM)

The DBM already issued Local Budget Memorandum No. 82 dated June 14, 2021 to inform the LGUs of their FY 2022 NTA shares. However, due to the issuance of the FY 2020 Census of Population, the DBM issues LBM No. 82-A dated August 19, 2021 to adjust the same.

The DBM will issue another advisory before the FY 2021 ends to formally inform the LGUs of their final FY 2022 NTA shares.

Concerns answered through a letter/email response.

Can we expect specific PPS to be developed for the LGUs with the increased NTA?

Department of Budget and Management (DBM)

Pursuant to their local fiscal autonomy, it is the LGUs that will determine the specific PPAs to be implemented, guided by each level of LGU’s expenditure assignments and responsibilities under Section 17 (b) of RA No. 7160 and other pertinent laws assigning the LGUs to implement certain services and functions.

Concerns answered through a letter/email response.

Will the Local School Board (apart from the Special Education Fund (SEF)) consider additional funds or can the SEF from the Real Estate Tax be given additional funds as a result of the Mandanas ruling, to help resolve the education deficits in respective towns/cities, especially those in the last miles learners, the marginalized and the vulnerable learners outside of the LMS areas?

Department of Finance (DOF)

Notwithstanding the devolution of many basic services to local government units (LGUs), basic and secondary education remains the responsibility of the national government through the Department of Education (DepEd). The LGUs, however, are allowed to supplement funding support to education through the SEF, which is a piggyback imposition of the real property tax pursuant to the Local Government Code (LGC) of 1991. The proceeds from the additional SEF Tax shall be automatically released to the Local School Boards (LSBs). But in the case of provinces, the proceeds shall be divided equally between the provincial and municipal school boards.

Under the LGC, the SEF proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the LSB. Subsequently, the DepEd-DBM-DILG Joint Circular No. 1, s. 2017[4] was issued to ensure a more strategic and efficient utilization of resources for priority programs and projects, which would complement, as well as reinforce, the budgeting and priorities at the different levels of decision-making. It recognized the current development in the basic education sub-sector particularly the K-12 and early childhood care and development (ECCD) programs to reiterate and refocus the policies on the use of the SEF to better support the supplementary budgetary needs of schools’ and learning centers.

In line with the Mandanas-Garcia ruling, Executive Order No. 138, s. 2021 was issued to fully devolve to the LGUs the implementation and delivery of basic services and facilities pursuant to Section 17 of the LGC and other existing laws, rules and regulations, which subsequently assigned functions to LGUs. Among the devolved functions are the local infrastructure services, which include the construction of school buildings and other facilities for public elementary and secondary schools. The increase in the share of LGUs from National Tax Allotment (NTA), formerly known as IRA, may support the provision of the said basic services and facilities devolved to LGUs.

Concerns answered through a letter/email response.

Role

Agency / Organization

Resource Speaker

Welcome Remarks

Department of Budget and Management

OIC-Undersecretary Rolando Toledo

Moderator

Kaabag sa Sugbo, Inc.

Ms. Catherine Melody Ruiz

Resource Speaker

Department of Budget and Management

OIC-Undersecretary Kim Robert De Leon

Department of the Interior and Local Government

Undersecretary Marlo Iringan

Non-Government Reactor

La Salle Institute of Governance

Dr. Ador Torneo

Philippine Chamber of Commerce and Industry

Mr. Ruben Pascual

Panelists

National Economic and Development Authority

Undersecretary Mercedita Sombilla

Department of Finance – Bureau of Local Government Finance

Director Pamela Quizon

Department of Budget and Management

Director John Aries Macaspac

Closing Remarks

Mindanao Coalition of Development NGO Networks

Ms. Andrea Maria Patricia Sarenas

Youtube Replay

Facebook Replay

Session Design

Presentation

What are the implications of ruling on the BARMM or the block grant on BARMM since the source of funds is also the same pool for the NTA of our Local Government? Is EO 138 applicable in the context of BARMM?

Undersecretary Marlo L. Iringan: With regard to the first issue raised, the responsibility to regulate the BARMM is lodged with the Bangsamoro Government particularly pursuant to Article VI Section 10 of the Organic Law of BARMM. That is why Executive Order No. 70 explicitly excluded the BARMM and the BARMM issue. Therefore, we did not touch the funds allocated for the Bangsamoro Autonomous Region in Muslim Mindanao.

Concerns addressed during the open forum.

Based on your assessment how prepared our Local Governments are, specifically what are the advantages and disadvantages of full devolution to our poor municipalities especially in our 4th and 5th class municipalities?

How do you ensure that local government; so, we mentioned the capacity development strategy that our LGUs have to be formulate as well, pero meron din specific questions kung paano ito makakatulong sa mga pamayanan kung mismo ang ibang local mayors of the local government at department heads nagsasabi ng dagdag trabaho ito sa ating mga local governments?

Is the three (3) year transition enough to our Local Government Units to absorb the devolved functions or even to develop their capacities to be able to truly meet and become responsive sa pagbibigay ng mga devolved functions na ito?

Undersecretary Marlo L. Iringan:  While our LGUs are created equally under the Local Government Code, LGUs are really not equal in terms of the challenges that they are facing in terms of the resources they now have. In the first question on How ready or prepared our Local Government Units, I can say that these LGUs are already prepared to accept and to implement the additional functions and services starting in 2022. Particularly the Local Government Units which have high capacity and are high performing. Sa DILG meron kaming ginawa na quadrants (4-quadrants), we classified our local government units into high capacity and high performance LGUs, high capacity and low performance LGUs, low capacity and high performance LGUs and low capacity and low performance LGUs. Therefore, we can safely say that those high capacity and high performance LGUs are more or less ready to accept those additional functions and services of the National Government.  But as I said, LGUs are not created equally in terms of their resources, capacities and challenges that they face. So naturally, those LGUs which belong to the quadrant low capacity and low performance are the LGUs that need to be supported by the National Government and right now we have already sort of a list of those LGUs which still needs to be affirmed or validated by the capacity development process that they will do in local government units.

Dun sa comments na may mga Mayors na dagdag na trabaho itong full devolution, it is very unfortunate if we heard comments like those. We really do not expect our local government officials to have that kind of attitude towards full devolution. In fact, they should be very happy because now they will have the resources to provide better services to their constituents. Kung ganun ang kanilang mindset, it's better they should not run for public office because at the end of the day the reason why they are there is to help their constituents to provide all these programs, projects and activities that would uplift their living condition.

Concerns addressed during the open forum.

How do you look at the three (3) year transition period because it is already a question related to the same, especially because you already have your quadrants but how do we put the low capacity and low performance LGUs to high capacity and high performance? Is three (3) years enough for them to move up?

Undersecretary Marlo L Iringan: We cannot really tell as of now whether those LGUs under the low capacity and low performance quadrant will already level up after three (3) years.  But that is something that we need to work on and that is why we have this phasing or the scaling down of NGA function and services. It is not a one-time big-time transfer to our local government units. At the end of three (3) years, perhaps you can already do an assessment if there are still LGUs who really need handholding or to be provided with more support by the national government agencies then those LGUs will be the one to get the support of the national government.

Director John Aries Macaspac: Balikan ko lang po yung mga unang katanungan kanina for example yung Are the BARMMs covered? I think Usec. Marlo has already addressed that and I will just emphasize that under the organic law or the BARMM or Republic Act No. 11054, the jurisdiction over the LGU within the BARMM is within the powers of the Bangsamoro government. Nasasakanila po yun if they want to adopt the policies prescribed under EO No. 138 and yun din po yung nilinaw natin under the rules and regulations ng EO 138.

With regard to the question about the readiness of the local government units may we emphasize lang po that the devolution will be phased from 2022 to 2024. So those LGUs that do not have the capacity will still be assisted by the national government. In fact, when we issued the national government fund for 2022, we prescribed therein that the 5th and 6th income classification LGUs including those in the geographically isolated and the depressed areas as well as those with highest covered incidence will be covered by the NGAs in 2022. In addition, we established the growth equity fund, which intended to provide assistance in the lagging, poor and disadvantaged local government units. So may mga phasing naman po tayo or transition under the policies that we have issued so far and from 2022 to 2024. By 2023, posibleng mabawasan yung i-aasist po natin until 2024; until such time na lahat ng LGUs are already fully implementing the functions and services devolved to them.

And gusto ko lang po mag react muna dun sa katanungan na may mga mayor or mga lokal na opisyal na yung tingin sa ginagawa nila natin ay dagdag trabaho lamang. And kasama po ng DILG, BLGF ang tingin po namin dito is somehow very disappointing thinking. Basically, parang nababalewala yung mga effort po natin to capacitate the LGUs and enable them to fully carry out their functions. In the first place, we are merely implementing and fully implementing the budget provisions of the Local Government Code of 1991 with regard to the mandates of the local government units hindi po tayo nag-aatas sa kanila ng karagdagang trabaho na wala po sa mandato at sa functions nila. We are merely implementing the provisions of the Local Government Code and on the part of the local chief executives and the other local officials they should see this full devolution measure as something that will further strengthen their local fiscal autonomy kasi hindi naman po sila aasa talaga sa national government and they will have the say to implement what program, project, activities are more needed in their respective areas.  Ito po nakikita namin na mas mapapaigting natin yung local fiscal autonomy of the local government units at ma-avoid po natin yung duplication of responsibilities and financing between the national government and local government units na isa po sa mga naging problema natin when it comes to the implementation of the decentralization or the devolution under the Local Government Code of 1991.

Concerns addressed during the open forum.

What are the ensuring mechanisms that are now placing local governments to also openly welcome CSOs or citizens' participation in this process of transition and when full devolution happens? In addition, with regards to Local Budget planning, monitoring and evaluation how will NGA also ensure transparency in peoples participations?

As mentioned by Dr. Ador, matagal na ang Local Government Code and the mechanisms are there provided by law.  But there still continues to be a struggle of opening spaces and claiming spaces by civil society organizations so how can this ruling impact on that or promote the democratization that should go hand and hand with devolution?

Undersecretary Marlo L Iringan: What are we doing in 2022 considering there will be more resources to be given to the LGUs? (1) We will still be doing the usual things that we do particularly patuloy naman kami nakasubabay sa mga LGUs at yun naman ang trabaho ng aming kagawaran. (2) Patuloy naming pinapalakas yung mga project monitoring committees na nagmo-monitor sa local government units and we are continuously providing capacity-building intervention for the members of the project monitoring committees from the cities, municipalities and even down to level of the barangays. In addition, we have several platforms crafted or developed for the purpose of transparency and accountability. We still have the full disclosure policy where local government units are required to upload the 14 documents pertaining to the transactions of the LGU and we still have the bantay korapsyon where people can just report whatever anomalies or wrongdoings that are being done at the LGU level. So those are the things that the DILG is doing in order that the resources are properly safeguarded particularly the increase of NTA shares of LGU in 2022.

Undersecretary Mercedita A. Sombilla: It has been mentioned over and over again that there really needs to be are the realignment of the development agenda as well as the strengthening of the linkages between investment programing and budget linkages so all of these are supposed to be transparent and all of these are supposed to be joined by all stakeholders. Dun sa development planning, we always make sure that everyone is a part of development planning so all our stakeholders are usually invited in the consultative sessions on where the plans are and so our mechanisms are all ready to ensure that yung pagtuhog ng planning, investment programming and budgets linkages are also all in place. With all these processes in place, I think we should be prepared and to be responsive on the aspect of the question. The other thing is that the regions and this is being monitored by the NEDA regional offices, we have this regional program monitoring and evaluation system so what we are planning to do and these are really the means by which we try to monitor the progress of the projects towards how they perform to achieve objectives.  Since ODA projects are included here we are planning to expand it to include locally-funded projects so that is  one thing we are discussing about and how can we really improve this RPMES to include in the monitoring all the local government projects to be able to see how the budgets are being used effectively and efficiently towards what are supposed to be needed. It is really important to realign and to over emphasize it. To align and harmonize all plans, all strategies, and the linkages vertically and horizontally because we really have to look at the whole and to look at this devolution thing as an input to just one national goal, which is the country's goal. Hindi na dapat yan magkawatak-watak, talagang dapat harmonized and aligned lahat ng activities, projects and programs.

Concerns addressed during the open forum.

Are NTA funds sufficient for our LGUs to really answer or respond to their respective communities especially with devolved functions?

Director Pamela P. Quizon: Susugan ko lang po ang sagot ng ating mga kasamahan sa gobyerno. Pero sa tatlong areas po muna kami magko-concentrate bago ko po sagutin ang katanungan. (1) Yun pong aspeto ng monitoring; (2) Aspeto po ng evaluation at (3) Aspeto ng transparency. Katulad po sa DILG, kami po sa DOF particularly ang Bureau of Local Government Finance ay tinatawag pong local fiscal governance performance monitoring system yan po ay kaparte ng LGTMS naman ng DILG. Ito naman po sa aspeto ng fiscal at financial ng local government units kung may quadrant po kaninang sinabi si Usec. Marlo may quadrant din po kaming tinatawag dito sa aming monitoring tool na sa LGFPMS. So kung ano pong result sa quadrant na yon, iyon po ang aming tinututukan pagdating po sa capacity building. Balikan ko po ang capacity building mamaya, balik po ako sa evaluation tool. Ano naman po ang evaluation tool ng BLGF? Kanina rin po ay prinesenta ni Usec. Marlo na ang DOF-BLGF po naglalabas ng LGU fiscal sustainability scorecard so nalalaman po ano yung strengths and weaknesses pagdating sa local finance. Yan po ay tinututukan namin dahil yan ay nakalink din  sa capacity building. Yung pangatlo po transparency so Maam Cathy, I hope CSOs are listening to us. Sa amin pong website ay makikita ninyo ang statement of receipts and expenditures ng lahat ng LGUs (provinces, cities , municipalities) from 2009 until 2020 ay nakapublish sa aming website. So kung may titignan po kayong mga LGU pwede nyo pong bisitahin ang aming website. Balikan ko po lahat iyon, performance, monitoring tool, evaluation tool, and the transparency doon po kami humuhugot ngayon pagdating sa capacity building. Iyan po ang isa sa commitment ng BLGF pagdating po sa EO 138. The capacity development or the provision of capacity development intervention for LGUs so kaagapay po ang BLGF pagdating po sa pagbibigay ng technical assistance sa revenue generation and resource mobilization. So yon po ang aming parte, Ma’am Cathy, sa EO 138.

Balikan ko po yung question ninyo, sabi nyo po sapat po ba? Hindi po siguro, kahit sino po ang tatanungin nyo hindi sumasapat ang pondo, hindi po ba? Sa lahat na dapat ibigay na serbisyo ng tao pero ito pong bagong pagbaba ng additional fund will really help in providing basic services to the people.

Concerns addressed during the open forum.

Clarification question of the Asia Foundation, Bakit optional yung pag adopt ng policies for the Bangsamoro Autonomous Region.

Director John Aries Macaspac: Siguro gusto lang natin i-emphasize na under the organic law of BARMM which is part of the comprehensive agreement of the Bangsamoro na pinirmahan ng ating pamahalaan, malinaw po na yung LGUs ay within the jurisdiction of the BARMM. Nasa kapangyarihan po ng BARMM ang pag-prescribe ng mga polisiya. In fact, the Bangsamoro parliament was mandated to enact its own Local Government Code. So hindi po sila saklaw ng EO No. 138 pero katulad nga po ng sinabi ko kanina ang BARMM government ay hindi pinagbabawalan na i-adopt kung ano yung mga polisiya na ating nalagay under EO No. 138. So may legal pong usapin yan pagdating sa pag-cover natin within the Bangsamoro kasi nga merong existing batas at ang batas po na iyon ay ipinasa ng Kongreso at inaprubahan po ng ating Pangulo. And that law is still in effect and we have to respect that law with regard to the jurisdiction over the local government units within the Bangsamoro Autonomous Region. It is within the powers of Bangsamoro government, hindi po yan saklaw ng Executive Order No. 138 and I think yon po ang nire-respeto natin na hindi natin pag-mandatory recover ng mga LGUs within the BARMM.

Concerns addressed during the open forum.

How do we ensure that our poor municipalities are really elevated in their situation and ensure equitable distribution of resources?

Undersecretary Mercedita A. Sombilla: Yung growth equity fund was really intended to assist the poorest LGUs, I think that is how it is being formulated and so they sort of tried to identify which of these LGUs would be considered as the lagging areas that would really need. I think yung poorest in the sense that they lack capacity and the financial resources to be able to catch up with other LGUs. So if that fund is going to be allocated effectively and efficiently, I think that would really help these lagging LGUs to be able to catch up a little better and prepare them for a greater role under this devolution plan. So that's the spirit of the growth equity fund that is being formulated. I think DBM and DOF will also be able to add more to what I have said.

Director Anna Liza F. Bonagua: Actually na-explain na po ata ni Usec Iringan, while the local government vested similar activities to all LGUs across level so pare-pareho lang lahat ng binigay sa munisipyo, sa city, at pare-pareho sa probinsya pero alam natin na iba-iba yung development situation ng ating mga local government units merong mga very hard to reach areas, very rural, meron ding with high poverty incidence in their locality at yung income classification ng LGU natin magkaka-iba din so may mga LGU na may maliliit na pondo.  I think kahit hindi pa nai-implement yung Mandanas ruling in preparation for that at alam natin na-increase ang lahat pero nakasaad na po doon sa Local Budget Memorandum at saka yung sa inisyu na EO No. 138 para sa national government agency that they should continue to support and capacitate the LGUs particularly yung nag-fall sa 4th, 5th and 6th class LGUs. Yon po ay tututukan pa rin ng ating mga national government despite the implementation of Mandanas Ruling at yung GEF na ang intensyon ay tulungan ang mga LGUs na lagging behind. Ngayon binubuo pa lang yung policy pero ang intensyon ay yung LGU na despite na-increase ay may kakulangan para punuan ang mga serbisyo na ibinigay sa kanila ng Local Government Code. So unang pinag-aaralan at kinokonsidera ay per capita IRA at per capita RATA and the development level in the infrastructure gap ng localities. So ito po altogether will be the criteria for deciding which LGUs will be able to avail of the growth equity funds at ito po ay financial support para sa mga programa ng mga local government units under the devolved functions.

Director Pamela P. Quizon: Sundan lang po natin si Director Anna, kami po ay kasama noong nagbubuo ng design ng growth equity fund. Kasama po sa pag-aaral natin sino ang eligible sa pagkuha ng growth equity fund. Tama po si Director Anna, hindi pa naiisyu ang talagang policy doon sa growth equity fund pero yun na yung pag-aaral natin at tinitignan naman namin sa side naman ng BLGF.  Sabi po ni Ma’am Anna kanina iba-iba ang posisyon ng mga LGUs. Kami naman po sa aspeto ng pinansyal nakikita namin na iba-iba din ang posisyon, may mga LGUs po na dependent. Aminin po natin Ma’am Cathy, marami pong LGUs 99% dependent na po minsan sa fiscal transfer. Ito po yung dapat tutukan at bigyan ng pansin ng growth equity fund. So kasama po kami ng DILG, DBM, NEDA sa pagbuo ng polisiya ng GEF. Sana po ay mailabas na at sana makinabang lahat ng talagang LGUs na nangangailangan.

Director John Aries Macaspac: Siguro ituloy ko lang po yung nabanggit nina Director Anna, Undersecretary Sombilla, at Director Pamela. Gusto ko lang po i-emphasize kasi kanina parang na-associate sa income classification yung distribution natin ng growth equity fund. Hindi po yun magiging based sa income classification ng LGUs. Katulad nga po sa naunang nasabi ni Director Anna at Director Pamela, yung magiging factor po natin sa distribution are the poorest half of all LGUs within any given level and the poverty incident should be higher than the median. And then isa rin po sa ginagamit nating parameter ay yung per capita NTA ng bawat local government unit which should not be higher than the median for any given LGU level and then yung mga LGUs po na within the BARMM hindi po natin sila i-cocover under growth equity fund and yung mga provincial and municipal level lang po isasama natin. In other words, hindi po kasama yung cities and municipalities. And let us not assume po na this growth equity fund will just be given in the local government units but this is somehow a performance-based allocation of the local government units so there will be a performance criteria na titignan po natin particularly doon sa makakatanggap ng initial amount and siguro po tatanungin nyo din eventually ano ba yung mga pwedeng paggamitan ng growth equity fund, meron bang menu. Initially we thought of a menu but alam naman po natin nagva-vary yung mga pangangailangan sa bawat level ng lokal na pamahalaan so we opted initially not to prescribe menu or projects that may be implemented since the gaps varied from the one LGU to another. So yung isa din pong parameter na tinitignan namin ay yung devolution transition plan na i-preprepare ng mga local government units so isa po sa mga posibleng gamitin namin criteria o polisiya ay yung mga programs and projects that may be implemented outside the growth equity fund shall only be those that have been identified by the local government units in their respective local government devolution transition plans. So yung pagbabalangkas po natin ng mga polisiyang ito ay on-going and yung initial amount po ay nai-submit na rin natin o nailagay na natin sa national expenditure program na i-susubmit ng ating Pangulo sa Kongreso for budget authorization purposes. In addition, the specific guidelines will be prescribed by the development budget coordination committee at initially yan po yung mga general guidelines na gagawin natin in the allocation and releasing utilization of the growth equity fund.

Concerns addressed during the open forum.

How would the new ruling affect community-based work and NGO's engagement with the LGUs?

What is the direct impact of the Mandanas ruling on CSO participation in local governance?

How can CSOs participate more effectively and meaningfully in local governance?

How can CSOs concretely support the NG and LGUs in the implementation of the ruling and preparation of the DTPs? What is the implication of the ruling in LGUs in BARMM?

La Salle Institute of Governance (LSIG)

In my view, the implementation of the Mandanas-Garcia ruling will provide more opportunities for community-based organizations and NGOs to be more meaningfully involved in local governance as a result of new opportunities created by the new memorandum circulars.

The primary modalities of participation are still the ones provided by the Local Government Code of 1991 and other laws such as sectoral representation in the local development councils (LDCs), indigenous peoples representatives in the local council, etc. Earlier assessments that these existing mechanisms have not yet been fully realized; a small proportion of LGUs have active and working LDCs. The DILG has been pushing LGUs to activate these, especially in the last few years. The pertinent memorandum circulars for the implementation of the Mandanas-Garcia ruling encourages national agencies and LGUs to involve civil society and NGOs.

The available modalities provided for participation include the preparation of the Devolution Transition Plans (DTP) and the Capacity Development (CapDev) Agenda. Community-based organizations and NGOs can take the opportunity to get involved in preparing the DTP and include their agenda. This is one opportunity, though, in my opinion, their involvement here may be limited by the tight schedules and deadlines for preparing and submitting the DTPs. They can also work with the LGUs to include the development of relevant capacities that will allow them to participate more meaningfully and work together better in their CapDev agenda. Other than these, the ruling does not strictly create new mechanisms for participation that are not already provided for in the Local Government Code of 1991.

The additional opportunities for meaningful participation come with the anticipated greater resources (i.e., national tax allotment) allocated for LGUs as a result of the ruling. This is expected to create opportunities for allocating more resources to local development initiatives, which community-based organizations and NGOs can maximize if they are able to engage their LGUs through the mechanisms provided by the Code, or through other alternative mechanisms that they may be able to work out with their respective LGUs.

Concerns answered through a letter/email response.

How can CSOs concretely support the national government (NG) and local government units (LGUs) in the implementation of the ruling and preparation of the devolution transition plans (DTPs)? (Item 1)

Department of Budget and Management (DBM)

At the outset, we note that CSOs, Non-Government Organizations (NGOs), and People’s Organizations (POs) are considered active partners in pursuit of local autonomy per Sections 24 and 35 of the Local Government Code of 1991 [Republic Act (RA) No. 7160], and Article 62 of its Implementing Rules and Regulations (IRR). 

The same were also considered in the Executive Order (EO) No. 138, s. 2021 and its IRR. Section 5 and 38 of the said EO and its IRR, respectively, provide that the CSOs, NGOs, and POs are encouraged to participate in the preparation, implementation, and monitoring of the DTPs of the National Government Agencies (NGAs) and the LGUs through consultations and public dialogues. 

Moreover, it further provides that the NGAs and LGUs shall ensure that their DTPs have undergone consultation with CSOs, NGOs, and POs prior to its implementation. At the local level, for instance, the CSOs, NGOs, and POs’ representation in the LGU DTPs as provided under Section 15, Rule V of the IRR provides an opportunity for greater participation.

Furthermore, Sections 38 and 39, Rule XII of the IRR of EO No. 138, s. 2021 provide for the roles of the NGOs, CSOs, and POs and recognize their role in enhancing transparency, accountability, and good governance, and as active partners in pursuit of local autonomy, particularly, but not limited to the following:

• Providing feedback on programs, activities, and projects of the government;
• Pushing for various advocacies and initiatives;
• Formulating plans, policies, and issuances; and
• Implementing capacity development programs and other activities.

Concerns answered through a letter/email response.

With the full devolution, will there be a transfer of employees from the NG agencies to the LGUs? What positions in government are affected by this ruling?  What are the effects of the ruling on the LGU employees and on the organizational structure of the LGUs?

Department of Budget and Management (DBM)

There will be no mandatory transfer of employees from the NG agencies to the LGUs. As provided under Section 24 of the IRR of EO No. 138, the LGUs shall not be compelled to hire any personnel affected by the implementation of EO No. 138, s.  2021.

However, should the LGU decide to hire these personnel, they shall be subject to the compensation system of the LGU concerned, and such reemployment shall be considered as a new entry to the civil service. For this purpose, the affected personnel shall sign a waiver or manifestation that they accept these terms as a condition for their employment with the LGU.

In the preparation of their DTPs, departments/agencies shall prepare a list of affected personnel hired on a contractual, casual, and contract of service/job order basis who are involved in the implementation of devolved services, for ready reference of the DBM, DILG, and the LGUs.

Likewise, pursuant to Section 4.4 of the Department of Budget and Management Department of the Interior and Local Government (DBM-DILG) Joint Memorandum  Circular (JMC) No. 2021-1 dated August 11, 2021, the full assumption of devolved  functions and services by the LGUs may require modification of their  organizational structure and competency requirements, that will consequently  entail updating of their Organizational Structure and Staffing Pattern (OSSP) and Capacity Development (CapDev) Agenda. 

For additional information on policies issued for the purpose, the DBM and DILG, in coordination with Civil Service Commission, issued DBM-DILG JMC No. 2021-3 dated September 13, 2021 prescribing the guidelines on the implementation of personnel policies and options pursuant to Sections 12 and 28 of EO No. 138, s. 2021 and its IRR.

Concerns answered through a letter/email response.

Will there be new plantilla positions to be created in the LGUs? Will the devolution result in an increase in salary grades of LGU employees since they have more functions?

Department of Budget and Management (DBM)

It is to be informed that EO No. 138, s. 2021 directs the full devolution of certain functions of the Executive Branch to Local Governments. Hence, the LGUs are expected to assume the primary responsibility of implementing the devolved functions and services pursuant to Section 17 (b) of RA No. 7160. Consequently, this may necessitate the hiring of additional personnel who will implement the devolved functions and services.

Nevertheless, it is to be emphasized that there are certain budgetary limitations, like the Personal Services limitation and salary schedule and ceiling that the LGUs have to comply with in determining the salaries and other compensation of their personnel, consistent with existing laws and policies. Hence, the full devolution of functions to LGUs may not necessarily result to an increase in the salary of its personnel.

Moreover, the additional positions needed by the LGUs to implement the devolved basic services and functions should be reflected in the approved DTP of the LGU, specifically Annex I (Proposed Additional Positions to the Plantilla of LGU Personnel) of the DBM DILG JMC No. 1, s. 2021-1 dated August 11, 2021.

Furthermore, the classification of the additional positions to be created should be consistent with the CY 2021 Index of Occupational Services, Position Titles, and Salary Grades in Local Government under Local Budget Circular No. 137 dated July 13, 2021, and modification of nurse positions under Budget Circular No. 2021-2 dated August 25, 2021.

Concerns answered through a letter/email response.

What is the impact of the ruling on the Personal Service (PS) cap of the LGUs?

Department of Budget and Management (DBM)

Pursuant to Sections 325 (a) and 331 (b) of RA No. 7160, the limitations on the appropriation for PS expenditures in LGU budgets were provided as follows:

1. Section 325 (a) thereof provides that the total appropriations, whether annual or supplemental, for PS of an LGU for one (1) fiscal year shall not exceed forty-five percent (45%) in the case first to third class provinces, cities, and municipalities, and fifty-five percent (55%) in the case of fourth class or lower, of the total annual income from regular sources realized in the next preceding fiscal year.
2. Section 331 (b) thereof provides that the total PS appropriation for one (1) fiscal year for a barangay shall not exceed fifty-five percent (55%) of the total annual income actually realized from local sources during the next preceding fiscal year.

In general, all PS items of appropriations of LGUs are subject to the limitations set forth under the said provisions of RA No. 7160 to ensure that LGUs operate within budgetary constraints and that adequate funds are allocated for the delivery of basic services and facilities and implementation of developmental projects.

Considering the need to create additional positions necessary for the full devolution of  basic services and facilities pursuant to EO No. 138, s. 2022, Section 93 of the General  Provisions of the FY 2022 General Appropriations Act (GAA), RA No. 11639, partly  provides for the waived items from the PS limitations, which includes the payment of  the salaries and other benefits of additional personnel that may be hired by the LGUs to  implement the devolved basic services and functions, to wit:

“Enforcement of the Personnel Services limitations under Sections 325 (a)  and 331 (b) of R.A. No. 7160 shall be waived to enable LGUs to: (i) absorb  the cost of hospital services transferred from provinces to newly-created  cities; (ii) pay the CAN [Collective Negotiation Agreement] incentives of  their employees upon compliance with the rules and regulations issued by  the DBM [Department of Budget and Management]; (iii) pay the retirement  and terminal leave benefits, including the monetization of leave credits of  their employees; (iv) pay the minimum year-end bonus of One Thousand  Pesos (P1,000) for the punong barangay and Six Hundred Pesos (P600) for  other mandatory barangay officials, and their cash gifts; (v) pay the salaries  and benefits of health/medical personnel that may be hired to perform  functions related to emergency situations; (vi) pay the special benefits that  may be authorized to be granted to LGU [local government units] personnel  during emergency situations; (vii) pay the salary differentials of LGU hired public health workers to fully implement the provisions of RA No. 7305;  and (viii) pay the salaries and other benefits of additional personnel  that may be hired by the LGUs to implement the devolved basic  services and functions, subject to the guidelines to be issued by  the DBM.”

Concerns answered through a letter/email response.

What are the restrictions on the use of the fund? Will there be a menu where the money can only be used for?

Department of Budget and Management (DBM)

LGUs are mandated to utilize their National Tax Allotment (NTA), formerly known as the Internal Revenue Allotment (IRA), to deliver the basic services and facilities devolved under Section 17 (b) of RA No. 7160. Furthermore, each LGU shall appropriate in its annual budget no less than 20 percent of its NTA for development projects pursuant to Section 287 of the same law.

Moreover, pursuant to Article 409 of the IRR of RA No. 7160, the DBM shall issue a local budget memorandum (LBM) not later than June 15 of every fiscal year to inform, among others, the beneficiary LGUs of their respective NTA shares and the guidelines in the preparation of their annual budgets, while also reiterating the provisions of existing laws and policies (i.e., RA No. 7160, executive issuances, etc.) on the allocation and utilization of their local budgets.

Consistent with existing laws and policies, the DBM may prescribe and reiterate in the said LBM the priorities in the use of local resources.

Concerns answered through a letter/email response.

How do we ensure that agriculture, food, nutrition, health security, coastal resource management are given priority funding?

Department of Budget and Management (DBM)

We note that Section 25, Article II of the 1987 Philippine Constitution provides that, “the State shall ensure the autonomy of local governments.” (Emphasis supplied). 

Related thereto, Section 16 of RA No. 7160 provides that LGUs shall utilize the authority granted to them by the 1987 Constitution, to deliver efficient and effective governance for the promotion of their constituents’ general welfare. Specifically, Section 17 (b) of the same law enumerates the basic services and facilities devolved to barangays, cities, municipalities, and provinces, which include various agriculture related research services and facilities, education, social welfare, and infrastructure facilities, which the LGUs are mandated to provide. 

Additionally, it is to be emphasized that LGUs are mandated by law to allocate their resources in accordance with their own priorities, undertake their own development planning, as well as ensure that their respective development plans are aligned with regional and national development goals. Pursuant to local autonomy, they are primarily responsible for implementing their own programs and projects consistent with their approved development plans and budget.

Concerns answered through a letter/email response.

Given the increased funding for LGUs, is underspending a strong possibility, and what can be done about it? (Item 7)

Department of Budget and Management (DBM)

We recognize that LGUs differ in financial and technical needs and capabilities. The likelihood of underspending is high for LGUs with low technical and absorptive capacity.  Thus, the need to capacitate the LGUs in their public financial management practices cannot be overemphasized.

EO No. 138, s. 2021 and its IRR, and the pertinent issuances also recognize these varying capacities of the LGUs. Particularly, Sections 9 and 31 of the EO No. 138, s. 2021 and its IRR provide that the DILG, through the Local Government Academy (LGA), shall oversee the provision of capacity development interventions for LGUs, and shall develop the appropriate mechanisms to ensure the efficient utilization of government resources on this effort.

It is further provided therein that the DILG, DBM, and the Bureau of Local Government Finance (BLGF) of the Department of Finance (DOF) shall include public financial management processes, such as local planning, investment programming, resource mobilization, and budgeting, in the capacity development of the LGUs to ensure that the allocation of the revenue allotment for basic services and facilities is in accordance with Section 17 of RA No. 7160 and other relevant laws.

Concerns answered through a letter/email response.

The Growth Equity Fund (GEF) is supposed to provide funding support for poor, disadvantaged, and lagging LGUs. What are the guidelines for the Committee on Devolution (ComDev) in the allocation of the GEF? Since this will be proposed to Congress, is it accurate to say that the ComDev will defend this in budget deliberations? If so, how much/is there a percentage share of the GEF in the national budget? Can the ComDev allow CSOs to participate in the formulation of the GEF budget? Do we expect that higher-income LGUs are ineligible? Are the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) LGUs still eligible to receive GEF even if they receive another IGFT in the form of an annual block grant?

Department of Budget and Management (DBM)

Sections 40 and 41 of EO No. 138, s. 2021 and its IRR provides the establishment of a GEF which shall address issues on marginalization, unequal development, high poverty incidence, and disparities in the net fiscal capacities of the LGUs. Particularly, it shall

cover the funding requirements of programs, projects, and activities of poor, disadvantaged, and lagging LGUs to gradually enable the full and efficient implementation of the devolved functions and services. Lower income class LGUs shall be prioritized in the provision of the GEF. 

In the FY 2022 National Expenditure Program, an amount of PhP 10 billion was proposed for the Local Government Support Fund (LGSF)-GEF. However, under Special Provision No. 3 of the LGSF-GEF in the approved FY 2022 GAA, RA No. 11639, the amount appropriated by Congress for the LGSF-GEF was only Php 1,250,000,000.00. 

Section 41 of the IRR of EO No. 138 provides that the GEF shall be released to the LGUs in accordance with the guidelines to be issued by the Development Budget Coordination Committee (DBCC) for the purpose. 

Considering the foregoing, we are of the opinion that the formulation of the guidelines for the GEF and the manner of determination of the LGU beneficiaries are within the scope of the DBCC’s functional jurisdiction. However, the CSOs are not prohibited from providing their recommendations and inputs, for consideration of the DBCC. 

Additionally, it is to be informed that BARMM LGUs are not eligible to receive the GEF considering that they are not mandatorily covered by EO No. 138, s. 2021, as reiterated in Section 4 of the IRR of EO No. 138, and that said LGUs are governed by the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao (RA No. 11054).

Concerns answered through a letter/email response.

LGUs funds for the 1st year of Mandanas to take effect is quite ok since that basis of computation is 3 years prior. What about the 2nd year, given that national government funds are affected by the pandemic? What are concrete options in generating/sourcing out funds?

Department of Budget and Management (DBM)

Pursuant to Section 284 of RA No. 7160, the NTA is based on actual tax cash collections of the NG in the third preceding year. Hence, the base for the FY 2023 NTA will be the actual collections in 2020 while the base for the FY 2024 will be the 2021 actual collections.

The NTA for 2023 is expected to be significantly lower compared to the 2022 level due to lower revenue collections in 2020 because of muted economic activity due to the Coronavirus Disease 2019 (COVID-19) pandemic. In 2024, the NTA is expected to However, it is noteworthy to mention that RA No. 7160 vested the LGUs with autonomy to be able to deliver better services to their constituencies. Particularly, it vested them with the capacity to generate their own local revenues, borrow from financial institutions, and even enter into public-private-partnership arrangements with the private sector.

Moreover, as indicated under Item 4.4 of DBM-DILG 2021-1 dated August 11, 2021, all LGUs should be able to proactively address the projected decrease in their respective FYs 2023 and 2024 NTA shares due to the effects of the COVID-19 pandemic through the identification of possible revenue sources to address potential gaps.

It further provides that provinces, cities, and municipalities shall formulate their Local Revenue Forecast and Resource Mobilization Strategy (FYs 2022-2024) and may seek guidance and assistance from the DOF-BLGF for the purpose.

Relative to this, the oversight agencies, especially the DOF-BLGF, have been advocating for the strengthening of the LGUs’ own revenue-generating measures. As the agency primarily tasked to provide consultative services and technical assistance to the local governments and the general public on local taxation and on other related matters, DOF BLGF advocates for the need to strengthen local revenue generation with improved tax administration and responsive local tax policies on incentives and relief.

Finally, the NG is also pushing for the enactment of the passage of Package 3 of the Comprehensive Tax Reform Program on Real Property Valuation Reform. This reform will enable the development of a more efficient real property valuation system, which in turn will broaden the tax base of the LGUs without necessarily increasing tax rates.  This reform, once in place, will favorably impact revenue mobilization at the local level, enabling LGUs to fund the growing needs of their constituents.

Concerns answered through a letter/email response.

Is percentage (%) of budget allocation for nutrition explicit in this ruling? For example, the nutrition budget in the LGU development plan.

Department of Budget and Management (DBM)

No. The Supreme Court (SC) ruling on the Mandanas-Garcia Case refers to two (2) separate (consolidated on October 22, 2013) petitions filed, which challenged the manner in which the NG computed the IRA shares of LGUs. In particular, the petitioners pleaded with the SC to mandate the NG to compute the IRA based on the just shares of the LGUs based from ALL national taxes, encompassing National Internal Revenue Taxes and customs duties.

However, it is to be informed that nutrition services fall under the mandates and are one of the devolved functions of the cities and municipalities under Section 17(b)(4) and Section 17(b)(2)(iv) of RA No. 7160, respectively.

Considering this, LGUs shall have primary responsibility for providing funds for the implementation and delivery of nutrition services.

Concerns answered through a letter/email response.

How does this affect the 2022 Annual Investment Program (AIP) since it is now approved in the LGU following the Planning and Budgeting Calendar?

Department of Budget and Management (DBM)

We note that LBM No. 82 dated June 14, 2021 was issued to prescribe the guidelines on the preparation of the FY 2022 annual budgets of LGUs.

Under Item 2.2.17 of LBM No. 82, the local chief executives (LCEs) of provinces, cities, and municipalities shall prepare and submit to the local sanggunian concerned, for budget authorization purposes, the Local Expenditure Program (LEP), together with, among others, the Annual Investment Program (AIP) duly approved by the Sanggunian through a Resolution, which is supported by, among others, the LGU DTP. 

Particularly, the AIP should be duly approved by the Sanggunian through a Resolution, and supported by the following:

• DILG-endorsed Gender and Development Plan and Budget;
• Local Disaster Risk Reduction and Management Plan as reviewed by the appropriate reviewing authority consistent with RA No. 10121, its IRR, and pertinent issuances of the National Disaster Risk Reduction and Management Council (NDRRMC); Local Climate Change Action Plan;
• Peace and Order Plan;
• Local Youth Development Plan;
• Local Nutrition Action Plan;
• Annual Cultural Development Plan approved by the Local Culture and Arts Council through a Resolution;
• Indicative Annual Procurement Plan;
• List of Program, Projects and Activities (PPAs_ for the Local Council for the Protection of Children;
• List of PPAs for Senior Citizens and Persons with Disabilities;
• List of PPAs to Combat Acquired Immune Deficiency Syndrome (AIDS);
• List of PPAs to Address the Problem of Illegal Drugs;
• LGU DTP;
• LGU CapDev Agenda; and
• Other documents/plans as may be required and/or deemed necessary in line with the full devolution of functions and services to the LGUs pursuant to EO No. 138, s. 2021.

Considering the timeline on the preparation and submission of the LGU DTP under DBM DILG JMC No. 2021-1 dated August 11, 2021, a clarificatory provision was issued under LBM No. 82-A dated August 19, 2021, providing that the LCE shall not be mandatorily required to include the LGU DTP as part of the supporting documents of the AIP and the LEP to be submitted to the local sanggunian for budget authorization purposes. 

However, in case the LGU has already prepared and approved its LGU DTP, the same may be part of the supporting documents of the AIP and LEP to be submitted by the LCE to the local sanggunian.

Concerns answered through a letter/email response.

What is the implication of the ruling in the BARMM? What is the implication of the ruling in BARMM’s block grant which is also derived from the national government taxes?

Department of Budget and Management (DBM)

Pursuant to Section 4 of the IRR of EO No. 138, BARMM and their LGUs shall be guided specifically by RA No. 11054, and other relevant laws passed by the BARMM. 

In this regard, the SC Decision has no implication on the BARMM’s annual block grant and on BARMM, considering that they are covered/governed by a separate law, that is RA No. 11054. However, the Bangsamoro government is not prohibited from adopting the provisions of EO No. 138, s. 2021 that it would deem applicable to the LGUs within its jurisdiction.

Concerns answered through a letter/email response.

That are the measures to ensure that the increased resources of LGUs will be put to good use (transparency & accountability)?  How is the check and balance mechanism in the implementation?

Department of Budget and Management (DBM)

Section 33 of the IRR of EO No. 138 explicitly mandates the NG agencies, and the oversight agencies, namely, the DBM, DOF, and DILG to set up and strengthen its results-based monitoring and evaluation systems to ensure that the LGUs have assumed the devolved functions and services effectively. 

Moreover, the NG agencies concerned are mandated to come up with their own performance monitoring and assessment framework, if not yet established, to ensure that they are effectively and efficiently performing their steering functions as a result of the full devolution effort, consistent with their approved DTPs. 

At the local level, LGUs are further enjoined to fully cooperate in the implementation of the results-based monitoring and evaluation system that will be established by the oversight agencies. The Regional Development Councils also perform a crucial role by ensuring that national and subnational priorities are addressed in the most efficient manner using the local resources and that the lagging areas are prioritized for faster development. Each local sanggunian shall ensure that the programs and projects included in the Appropriation Ordinance of the LCE are sourced from the approved provincial/local development investment program of the LGU. 

We likewise reiterate Sections 38 and 39, Rule XII of the IRR of EO No. 138, s. 2021 which define the role of the NGOs, CSOs, and POs, which recognize their crucial part in enhancing transparency, accountability, and good governance as active partners in pursuit of local autonomy.

Concerns answered through a letter/email response.

How will the government ensure transparency and people’s participation in terms of budget planning, monitoring, and evaluation?

Department of Budget and Management (DBM)

We reiterate our comments and remarks under Item 1.

Concerns answered through a letter/email response.

What support can the cities, provinces expect from the NG given this new arrangement?

Department of Budget and Management (DBM)

Pursuant to Section 17 (f) of RA No. 7160, the NG or the next higher level of local government unit may provide or augment the basic services and facilities assigned to a lower level of local government unit when such services or facilities are not made available or, if made available, are inadequate to meet the requirements of its inhabitants. 

Moreover, central to the CapDev initiatives of the NG for the LGUs are the activities of the DILG and its attached agency, the LGA.

Under Section 9 of EO No. 138, the NGAs, the DILG-LGA shall oversee the provision of technical assistance and capacity building interventions to all the LGUs in order to ensure that the latter will be able to effectively carry out and manage the devolved functions and provide for the needs and services of their constituents.

An example of a CapDev intervention, per Section 31 of the IRR, concerns the public financial management processes, such as local planning, investment programming, revenue generation, budgeting, and revenue generation which shall be organized by the DILG, the DBM, and the DOF-BLGF.

To facilitate the provision of capacity development interventions and technical assistance in the execution and management of the devolved activities, the LGUs may enter into memoranda of agreement with the NGAs, as may be necessary.

Further, per Section 9 of EO No. 138, s. 2021, a CapDev agenda for the LGUs shall be formulated based on the assessment framework and guidelines to be issued by the DILG LGA.

Meanwhile, Section 8 of EO No. 138, s. 2021 also provides for the establishment of a GEF which shall be made available to the poor, lagging, and disadvantaged LGUs that are financially incapable of allocating funds to implement the devolved services. The GEF aims to address marginalization, unequal development, and high poverty incidence across different LGUs.

Concerns answered through a letter/email response.

How will the Mandanas rulin implementation affect city-wide planning of the LGUs in terms of prioritization and implementation of projects? Will they give priority to school building program and its standards for construction?

We reiterate our comments and remarks under Item 7.

Concerns answered through a letter/email response.

What are the advantages and disadvantages of this devolution to the poor or 4th class and 5th class municipalities?

Department of Budget and Management (DBM)

At the outset, EO No. 138, s. 2021 directs the full devolution of certain functions of the Executive Branch to Local Governments. Thereby, the LGUs are expected to assume the primary responsibility of implementing the devolved functions and services pursuant to Section 17 (b) of RA No. 7160.  

While the increase in the NTA shares due to the SC Decision on the Mandanas-Garcia Case puts the LGUs in a better financial position to implement devolved programs and projects that are tailor-fit to the priorities and needs of their respective localities and constituents, EO 138, s. 2021 and its IRR, and pertinent issuances recognize the technical and absorptive constraints of the low-income class LGUs. 

Relative thereto, Sections 40 and 41 of EO No. 138, s. 2021 and its IRR provide the establishment of a GEF which shall address issues on marginalization, unequal development, high poverty incidence, and disparities in the net fiscal capacities of the LGUs. Particularly, it shall cover the funding requirements of programs, projects, and activities of poor, disadvantaged, and lagging LGUs to gradually enable the full and efficient implementation of the devolved functions and services.

Moreover, under National Budget Memorandum (NBM) No. 138 dated 06 January 2021,  in view of the implementation of the aforesaid SC decision on the Mandanas-Garcia  petition, NGAs concerned are directed to 1) refrain from including funding for devolved  local projects for the LGUs belonging to the 1st to 4th income classifications in their  budget proposals, 2) include funding requirement for capacity building of the LGUs to  enable them to assume these devolved functions, and 3) limit subsidies for local  projects to the LGUs belonging to the 5th and 6th income classes, the  geographically isolated and depressed areas (GIDAs), and those with the  highest poverty incidences, ranked in top third highest. 

This directive from NBM No. 138 ensures that despite the increase in the LGUs NTA, those belonging to the lower-income class LGUs, specifically the 5th and 6th income classes shall continue to receive subsidies from the NG to assist them in the implementation of the devolved functions and to ensure continued delivery of services.  

While said subsidies shall be limited to the 5th and 6th income class LGUs, all LGU levels shall receive continuous technical assistance and capacity development interventions from the oversight agencies to ensure that they will be able to implement the devolved functions effectively and efficiently.

Concerns answered through a letter/email response.

The Department of Health came up with a list of programs that are to be fully, partially, and not devolved. What’s the approach to the partially devolved programs?

Department of Budget and Management (DBM)

Under Section 5 of EO No. 138, s. 2021 and Rule V of its IRR, the NGAs concerned and all LGUs are directed to prepare a DTP to ensure the smooth implementation of the devolution of functions, basic services, and facilities to the LGUs.

The identification of the PPAs that are proposed to be phased out/scaled-down is based on the functions which have been devolved to the LGUs under RA No. 7160 and other pertinent laws.

Specifically, Item 6.1.b of the DBM-DILG No. 2021-2 dated August 12, 2021 provides  that the identification of the PPAs shall include the: (i) appropriate assignment of  functions, services, and facilities to each level of government, determining the specific  level of LGU wherein said functions and services have been or can be devolved and transferred to, based on RA No. 7160 and other relevant laws, and (ii) the  implementation strategy and phasing of the devolution transition activities of  the devolved PPAs shall be subject to the capacity and resources of the LGUs  to take on these devolved functions, based on the experience and assessment  of the NGA concerned.

Considering the foregoing, the approach to the full, partial, and not devolved functions shall be identified in the NGA DTPs reflected in Annex B, entitled, “Implementation Strategy and Phasing of Devolution Transition Activities,” and shall be based on the respective assessment of the NGAs.

Concerns answered through a letter/email response.

How would the new ruling affect community-based work and NGO’s engagement with the LGUs?

Department of the Interior and Local Government (DILG)

Since CSOs are made members of the Devolution Transition Committee (DTCs), they may assist the LGU in communication the contents of the DTPs to their constituents and may provide capacity building assistance and as third-party monitors in the actual implementation of their DTPs.

Concerns answered through a letter/email response.

What are the benefits of NGOs/CSOs in the implementation of the Mandanas Law?

Department of the Interior and Local Government (DILG)

More fiscal space for LGUs to provide counterpart financing for NGO/CSO projects in their AORs.

Concerns answered through a letter/email response.

What is the direct impact of the Mandanas ruling on CSO participation in local governance?

Department of the Interior ad Local Government (DILG)

CSOs are made part of the DTCs at each LGU level so that they can participate and influence the formulation and actual implementation of the DTPS in their respective communities.

The role of CSOs is emphasized as partners of government given the challenges and far-reaching implication of SD Ruling implementation that necessitates a whole of government approach.

Concerns answered through a letter/email response.

What are the important roles of the Non-Government Organizations in the implementation of Mandanas?

Department of the Interior and Local Government (DILG)

Section 38 of the Implementing Rules and Regulation of EO NO. 138 stipulates that NTGOs/CSOs/Pos play an important role in enhancing transparency, accountability, and good governance, and as active partners in pursuit of local autonomy. It further enumerated areas for collaboration which include but are not limited to: (a) providing feedback on programs, activities, and projects of the government; (b) pushing for various advocacies and initiatives; (c) formulating plans, policies, and issuances; and (d) implementing capacity development programs and other activities. NGOs/CSOs/Pos are likewise encouraged to participate in the monitoring of DTPS of the NGAs and the LGUs through consultations and public dialogues.

Concerns answered through a letter/email response.

How can CSOs participate more effectively and meaningfully in local governance?

Department of the Interior and Local Government (DILG)

By serving as force multipliers in advocating for and communicating the contents of the DTP to LGU constituents and by participating in the implementation and monitoring of the DTPs.

Concerns answered through a letter/email response.

How are these devolution and transition essential in CSO particularly in Persons with Disabilities in their local areas?

Department of the Interior and Local Government (DILG)

CSOs are given the opportunity to influence LGU strategic priorities and participate in the process. Since there are more funds that LGUs can use, sectors that are not usually prioritized can be given additional resources.

Concerns answered through a letter/email response.

Are CSOs under the RDC the only ones that can be invited to the orientation on Devolution?

Department of the Interior and Local Government (DILG)

Relative to the DTCs that are to be created to formulate the LGU DTP, Section 4.2 of DBM-DILG Joint Memorandum Circular (JMC) No. 2021-1 provides that there shall be at least two (2) members of the LDC at the different LGU levels. CSOs made members of the DTC at the barangay, city/municipal, and provincial levels can thus be informed on devolution concepts and policies; and apprised of the devolution transition activities of the locality.

Beyond membership in the DTC, Rule XII Section 39 of the IRR of EO No. 138 provides that CSO participation shall not be limited to the accredited/registered CSOs by the respective NGAs or to the members of the local special bodies in the respective LGUs.

It also underscored that both NGAs and LGUs shall, as much as possible, ensure equitable representation of CSOs from various sectors such as NGOs, Pos, public sector unions, private and business sectors, women’s groups, indigenous peoples (IPs), persons with disabilities (PWDs) among others.

Concerns answered through a letter/email response.

How can CSOs concretely support the NG and LGUs in the implementation of the ruling and preparation of the DTPs?

Department of the Interior and Local Government (DILG)

This would depend on the advocacy and the scope of the package of services that can be offered by the CSO (e.g., project proposal preparation, planning, IEC or advocacy, project financing, capacity building, feedbacking as third-party monitors) and the needs or requirements of LGUs based on their DTPs. These should accordingly be matched.

Concerns answered through a letter/email response.

What is the implication of the ruling in LGUs in BARMM?

Department of the Interior and Local Government (DILG)

This may be best addressed by DBM since it has already engaged BARMM.

Concerns answered through a letter/email response.

How many members of the transition committee should come from the CSOs?

Department of the Interior and Local Government (DILG)

For provinces, cities, municipalities and barangay, at least two (2) members of the DTCs should come from CSOs/POs.

Concerns answered through a letter/email response.

Is the creation of CSO desks at the Provincial, Cities and Municipalities thru the DILG MC 2021-054 part of the OSSP of LGUs?

Department of the Interior and Local Government (DILG)

The OSSP as a component of the LGU DTPs will have to be decided on by the LGUs in consideration of its existing structure, manpower resources and requirements, as well as positions mandated by law that it has to comply with.

The OSSP configuration would depend on the LGU strategy.

The DILG MC only “encourages the creation of CSO desks that may be accommodated through the designation of a desk officer with multiple responsibilities and does not necessarily require the creation of positions that would dispense said functions.”

Concerns answered through a letter/email response.

There are LGUs that do not follow the LGC on CSO selection and participation until now but only for compliance/show. How can this devolution ensure genuine compliance by LCEs/Mayor with the mandated process towards true/genuine CSO participation?

Department of the Interior and Local Government (DILG)

The IRR of EO No. 138 as well as subsequent policies on devolution promotes the participation of CSOs in LGU DTP preparation.

The Department has also promoted several policies on CSO participation cognizant of their important role in local governance processes. The establishment of a CSO Desk and the institutionalization of a People’s Council as provided under DILG MC No. 2021-054 are mechanisms/strategies intended to help strengthen CSO participation in local governance.

Concerns answered through a letter/email response.

Role

Agency / Organization

Resource Speaker

Welcome Remarks

Mindanao Coalition of Development NGO Networks

Ms. Andrea Maria Patricia Sarenas

Moderator

Mindanao Coalition of Development NGO Networks

Ms. Raizsa Mae Anayatin

Resource Speaker

De La Salle University Faculty

Former National Coordinator, PhilDHRRA

Dr. Divina Luz Lopez

Municipal Government of Polomolok, South Cotabato

Mayor Honey Lumayag-Matti

Panelist

Department of Budget and Management

Director John Aries Macaspac

Department of the Interior and Local Government

Director Anna Liza Bonagua

Closing Remarks

Department of Budget and Management

Undersecretary Rolando Toledo

Youtube Replay

Facebook Replay

Session Design

Presentation

Anong mangyayari? What do you expect will change or happen when we now implement the Mandanas ruling in 2022? Ano yung entry points, saan magpa-participate, anong platform magpa-participate at paano makakapag-participate ang CSOs dito sa devolution process? Meron ba itong accreditation process? Paano pipiliin yung mga CSOs na uupo sa mga Local Special Bodies and Committees of the LGUs?

Dir. Anna Liza F. Bonagua: Marami pong salamat in this interesting conversation and discussion among civil society organizations, different actors themselves and also from our local chief executive and our colleague here from DBM. Siguro simulan ko yung discussion sa recognition of the civil society organization as a significant partner in social, economic and democratic development. Hindi lang sa Pilipinas but also in Asia and the Pacific Region and maybe in developing countries.

In the Philippines alam naman natin 'no, it is provided in the Constitution which was forged and shaped after the People's Power Revolution noong 1986, which was recognizing the inclusion and empowerment including the important role of civil society organization.

Kami sa DILG, we really recognize the importance of civil society organization hindi lang sa decision-making, planning, implementation, monitoring at the local level to increase the responsiveness and efficiency on the service delivery of our local government units.

Provided naman sa Local Government Code, sa Section 107, Section 108 which really provides and encourages civil society participation in local governance. Ito nabasa ko based on CODE-NGO assessment, ang title niya "Assessment of the Enabling Environment for Civil Society Organization in the Philippines'' conducted in 2016. I think si Jing was involved in CODE-NGO then. Sinabi dito na that in the Philippines, the legal regulatory and policy environment which CSO operate in is generally positive, encouraging and enabling a civil society to operate.

So yun ang aking pinanggalingan. At yung tanong mo sa paano makakapag-participate ang ating mga civil society organization, particularly on the side of DILG on governance, syempre provided by law ang kanilang participation and in the Local Government Code but then meron tayong proseso in which they can be the starting point of participation of the civil society which is the accreditation and selection of the accredited CSO member to sit as representatives in the Local Special Bodies of local government units. To facilitate this process, the DILG has been issuing circulars every after election to provide the guidance in the process of accreditation and selection of the CSOs and their representatives in Local Special Bodies.

Narinig ko si Jing sa kanyang report, stringent daw ang accreditation process pero if I remember right halos taon-taon when we consult with CSOs we tried very hard to simplify the process of accreditation. However, we have to comply with the requirements provided in the Local Government Code. Parang yun na talaga yung pinaka-siksik na simplification na kaya naming ibigay.

The latest memo circular/guidance that we have noong election ng 2019 is the DILG Memorandum Circular 2019-172 which was issued on May 22, 2019, which provides for the CSO accreditation process.  This includes the inventory and call for accreditation by local government units, the actual accreditation procedure, the selection of representative among CSO themselves to sit in the Local Special Bodies and the reconstitution and the convening of the Local Special Bodies wherein the Local Chief Executive calls for the organization of the different Local Special Bodies lalo na yung Local Development Councils, Local Health Board, Local School Board at saka yung Peace and Order Council kung saan mas nahahighlight yung participation ng ating mga Civil Society Organizations.

Regarding dun sa tanong, anong magbabago? Nakikita namin o lagi naming sinasabi ni Dir. Aries that more than ever mas kailangan ngayon ang participation of all sectors by local government units - civil societies, private sectors even the development partners, academic institutions, they need all the help they can muster in order to support this devolution, yung face of devolution to ensure that this would be a success. Kung alalahanin natin, 30 years na yung devolution - 1991, 1992 hanggang 2021.

But then ngayon, may new face of devolution which we hope to happen within three years. So yung transition ng tatlong taon is really a challenge for our local government units so kailangan nila ng lahat ng suporta, much more on  our civil society organizations.  Kasunod na mga policy is yung engagement ng mga CSOs kasi we have lined up and laid down a policy on how the national government will prepare for devolution by next year and how local government should also prepare.

May third party pa sa ating preparation nandiyan pa ang CSO which is the voice of the people, kasi government national, local government nawala yung voice of the people. And I think civil society ably represents the voice of the people.

Concerns addressed during the open forum.

Ano ang ineexpect natin from the CSO perspective naman sa side natin? What are the things or entry points with the Mandanas ruling? Saan po tayo pwedeng mag-engage at paano natin talagang mamamaximize ang opportunity na ito?

Dr. Divina Luz J. Lopez:  Dir. Anna, she already mentioned the main avenues for CSOs to participate. More than ever, highlighted by the fact that mas malaki yung at stake na resources that will be subject for allocation.

So ang challenge is how can the decision for resource allocation of government be made more equitable and responsive sa pangangailangan talaga. So ngayon, ang sinasabi naman na yung CSOs kay Mayor Honey masyadong na highlight yun eh, yung value added ng perspective ng CSOs aside from mas marami yung resources na namobilize.

But I think, the advocacy and the reason for the CSO talaga which is to promote social justice and social equity kasi yun ang bitbit talaga nila. So for me, ang issue kasi ng accreditation pwedeng tulungan na lang talaga yun. Tama si Dir. Anna in saying that nagawa na namin lahat. Tama yun Dir. Anna kasi you have always been there.  Tuwing election time ini-enhance yan, ang provisions ng MC in terms of paano ba gawin ang proseso na maging more inclusive.  We are limited by what is in the Code and in the IRR of the Code. Hindi kasi natin pwedeng bawasan yun kasi we have to keep and maintain kung ano yung nandoon. 

For me, ang nasa direct avenue for CSO yung entry point to engage in the devolution and in the PFM would really be the planning leading towards decision-making sa budgeting. Ang mechanism doon ay yung sa Local Development Councils. I think mag-coconverge din naman talaga yung proseso sa DTP doon Dir. Anna tama ba? Sa CDP, later on mag-coconverge din naman talaga doon at ica-capture yun ng CDP yung magiging laman ng DTP in the next three years, parang ganun. It is very important that CSOs will really seize that opportunity to be part of the LDC.

Ang sinasabi ng karanasan kanina sa DILG nagkaroon ng initiative to have a more enabling environment na mae-encourage na yung mga LGUs ngayon na hindi sila mag-limit sa 25% lamang na composition of CSOs, right? So if we are looking at more than 70% ng CSOs ngayon natanggap na nila na kailangan na mas higit sa 25% ang CSO, that should be sustained. Ang ating desire na gawing 50%, ito kasi ang ating karanasan sa BUB and that can happen. In fact some 12% of the LGUs already had their LDCs na 50% yung members ay CSO. Pero I would also like to highlight the fact that LDCs are only functional twice a year. Twice lang sila nagmi-meet eh, yung minimum right? So the real task of planning ay nangyayari hindi sa LDC en banc. Nangyayari sya sa sectoral committees.

So what we are saying is that, kapag na-reconstitute ang for example, ang Municipal Development Councils isabay na yung committees under that kasi yung mga CSOs pwede maging part of the relevant committee depende kung ano ang kanyang advocacy o agenda. The sectoral committee, unlimited ang kanilang meeting time. Doon mangyayari ang pagkakaroon nila ng consensus ano ba talaga ang assessment nila sa health? sa education? sa mga social sectors and group natin- people with disabilities, etc. That has been our advocacy, na seryosohin yung sectoral committee dahil kahit hindi ka accredited you can really become member of the committee.

Another one, yung monitoring, pagka-nabuo na yung plan at maiimplement na yung plan vital ang role ng CSOs sa monitoring.  And ang ating naging karanasan rin marami sa mga LGU na nakadiskubre na magagaling pala yung mga CSOs sa monitoring at that is really their rightful place, yung third party.  Magagaling sila lalo na yung BUB time. They did the monitoring of the LGU, in fact a number of them kept their relationship. They continue to tap the CSOs in monitoring, subsequently yung mga projects. Another would be yung policy-making. Ito yung gawain ng Sanggunian every week.

In any development issue, hindi limitado sa programa at proyekto lang ang intervention in order to address the problems. Pwede rin mere policy, pwede walang proyekto, walang programa, yung policy lang ang i-issue. Yung resolution or ordinance ng Local Sanggunian. Definitely, CSOs can become adept in terms of their legislative advocacy. For all we know mga kamag-anak din naman nila yung mga konsehal.  Meron pong nagchat kanina, yung sa implementation. Pwede talaga yung CSO na maging partner ng LGU as implementer kaya lang ibang rules of the game yun. Pagka-implementer ka, yung relationship mo with the LGU para kang pumasok sa kontrata. I-implement mo yung isang proyekto ng government. The procurement rules are applied there. Sa planning, sa legislation, sa monitoring and evaluation and yung crafting policies to address specific issues.

Concerns addressed during the open forum.

Ano po ang mae-expect nating pagbabago/changes in the next three years when the Mandanas ruling and the Executive Order for its implementation will start in 2022? Tulad ng nasabi ni Ms. Jing kanina maganda na doon pa lang sa planning stage even at the committees makapag-participate na ang mga CSOs. Pag merong plano meron iyang kaakibat na budget.

Dir. John Aries S. Macaspac: We took that as an opportunity to already hand over to the LGU the primary responsibility of delivering certain functions and services which fall within the expenditure assignments of the LGUs.

Basically, yung mga functions and services ng pineperform ngayon ng agencies na dapat LGUs ang nag-iimplement in the three-year period ibibigay na yan sa mga LGUs. Yung pinaka-kumbaga operational document natin for the implementation of this devolution is the Devolution Transition Plan, which the National Government Agencies and the LGUs are mandated to prepare.

In the preparation of the Devolution Transition Plans, we have emphasized in the Implementing Rules and Regulations of EO 138, the rules of the Non-Governmental Organizations, the Civil Society Organizations and People’s Organizations. Ang sabi nga natin sa Implementing Rules and Regulations of EO 138, which we already adapted in the Joint Memorandum Circulars for the preparation of NGAs ang DTP guidelines is the CSO, NGOs and POs are encouraged to participate in preparation, implementation and monitoring of Devolution Transition Plans of both the National Government Agencies and the Local Government Units.

So, with respect to the implementation of Mandanas-Garcia ruling, yun yung na-emphasize talaga natin yung papel ng civil society organizations. But even before the Mandanas ruling, meron na tayong mga in place na policies with regard to the participation of the CSOs in both the planning and budgeting process in the local level. In fact, the Department of Budget and Management in 2015 already published a guide book on the participation of the CSOs in the budget process. That was a formal issuance of the DBM and it was formally adopted through Local Budget Circular 106 which we eventually adopted in the Budget Operations Manual for 2016.

Tapos sa Budget Operations Manual ine-emphasized din namin doon as one of the budgeting frameworks for local budgeting is yung participatory governance. Nilagay namin yun as one of the frameworks for local budgeting because we acknowledge that participatory budgeting would help to promote transparency. It will also have the potential to reduce local government inefficiencies and corruption. Nakalagay na yan, alam na rin ng mga LGUs yan. In our capacity building programs we always emphasized that.

You should adopt this participatory budgeting through the participation of the CSOs in the budget process. Although nilagay namin doon yung mga emerging roles lang nila. So hanggang saan ba yung proseso na kung saan pwedeng mag-participate yung civil society organizations in the budget process para malinaw. Kumbaga yung encroachment of powers and functions of the local government units. But to further emphasize that with regard to the implementation of the Mandanas ruling, reiterate natin in the guidelines implementing the full devolution as the result of the implementation of the Supreme Court ruling on the Mandanas-Garcia case.

Concerns addressed during the open forum.

Do the government or LGUs and other government agencies have openness in convergence effort or partnership with CSOs or NGOs at the local level? Were there challenges with PhilGeps requirements when it comes to partnerships with CSOs? Ano po ang masasabi niyo about this?

Dir. Anna Liza F. Bonagua: Dagdag ko lang, siguro yung tanong, sabi nga natin the policies are in place. Meron challenges on the ground. Kailangan talaga ng puspusang capacity building orientation sa local government units at ensure may monitoring system at kung makikita niyo nakasama na sa performance assessment tools ng DILG for local government unit to ensure compliance ng local government units sa participation ng CSOs.

Siguro yan through the years hanggang sa may mga active na CSOs na nandyan sa baba ay mapeperfect natin yung proseso. Dagdag ko lang din siguro yung mga engagement, aside from the CSOs engagement ngayong may Mandanas ruling, so sila ay kasama sa pagpa-plano ng local government units, may member ng CSOs na umuupo sa Devolution Transition Committee sa lahat ng levels - provinces, municipalities even the barangays. Nakalagay din ito sa policy ng JMC ng DILG-DBM na hindi lang sa formulation ng DTP pati sa implementation ng transition during the transition period and even beyond the transition - pagka fully devolved na sa local government units, especially in the implementation of the functions.

Sa DILG actually, we released a recent initiative increasing the involvement of civil society organizations in local governance beyond ano na yung nangyayari ngayon. We want the CSOs to live up to the expectation. Yung three-way rule ng CSO - gabay, kaagapay at bantay. Yung gabay, by seeking their support in the formulation of policies, plans and investment programs. Hindi lang sa local pati sa national. Kaagapay, assessments, monitoring and even implementation of the programs of the government, particularly local government units kasi they would ensure the inclusiveness of the programs kasi they have the sector which they advocate to be beneficiaries. At yung bantay in monitoring and evaluating the programs, projects and also ensuring transparency and accountability.

At ito binigyang buhay on the recent policy of the DILG, yun nga as members of the development councils they take part in the preparation of LGUs comprehensive development plan. I hope with the help of the academic institutions yung presence ng CSO ay nahighlight kasi tinutukan namin yung pag formulate ng comprehensive development plans ng LGU for the last three years. Thank you sa aming CSOs partners ngayon ang ating status ay 73% ng ating lahat na local governments. 1,200 of the 1,600 already have updated comprehensive development plans. I think this is the only time we have reached that high even at the end of the term. Meron maraming updated CDP kasi nag-uupdate naman yan every three years. Pero, I think this is the highest completion or compliant rate that we have received.

Recently, CSO involvement in the assessment of CDP hindi lang formulation, CDP assessment na ito so higher-level assessment of the CDP is also being promoted with the involvement of the civil society organization. Sa DILG MC 2021-037 ang title ay Updated Guidelines on the Assessment of the Comprehensive Development Plans of Cities and Municipalities - CSOs are prescribed to sit as one of the members of the provincial CDP technical assistance committee. So kasama sila ng provincial team na mag-aasssess ng CDPs ng cities and municipalities. So yun yung bago nating engagement hindi lang sa formulation ng CDPs pati na yung assessments. So pwede nilang hanapin ngayon tingnan kung ang kanila bang sinulong sa cities and municipalities ay naipasok talaga through the review of the provincial government. Then also, siguro natabunan lang ito kasi 2019 yung issuance meron din kaming DILG issuance nung 2019-188 "Organization and Reconstitution of the Sub-Regional Project Monitoring Committees'' to be established by cities and municipal level shall have CSOs and NGOs as mandatory members. Kailangan po alam natin yan, so we can invoke our rights there. The local PMS shall monitor and evaluate the programs and projects to introduce the following; yung PPAs na nandoon sa Local Development Investment Program ng mga local government units. PPAs funded by the locally generated resources which are implemented by the local government units as well as programs and projects funded with fund support from the national government.

Lalo na yung nakaraan, yung mga nakapaloob sa SLGP, assistance to municipalities, yung sa road project namin - SALINTUBIG and a lot more. Yun po ay nakapaloob sa aming portal na SubayBAYAN na I think ginagamit ng hindi lang DILG pati civil society organization. Moreover, hindi naman ito bago pero gusto lang naming banggitin sa performance assessment kasama ang ating mga civil society partners ng mga regional offices in the assessment during the CSGLG assessment. Sana nata-tap ang inyong mga organizations. Hindi po mabubuo yung CSGLG assessment kung walang CSO partner kasi nakalagay po yun sa memorandum circular. However, recently wala po kaming assessment for 2020 and 2021 in view of COVID-19. Yun po yung ano, lumalawak na mas dumadami at mas lumelevel-up yung ating engagement sa ating Civil Society Organizations.

Concerns addressed during the open forum.

Dir. Aries can you speak more about doon sa PhilGeps, is there a window kung paano maging smoother yung transactions between LGU and CSO? Can you tell us more about this?

Dir. John Aries S. Macaspac: I do apologize, I am not really familiar with the second question so I cannot really answer kasi there's another unit in DBM that handles that. But dun sa first question na lang siguro, "Do government or LGU and agencies have openness in convergence efforts with partnership with the CSOs at the local level?" As I have mentioned there is no policy with regard to the convergence between the national government, LGUs and the civil society organizations. For the national government palagi din namin nilalagay yan in our national budget preparation guidelines yung participation and need to report the inputs of CSOs on the projects and activities proposed by the national government agencies. Now for the local government units, yung na issue na guide book ng DBM which we also included in the performance assessment tool which is adopted by the DBM to check the level of compliance by the LGUs with the Public Financial Management policies and principles that we espoused at the local level. So, there is really no reason for both the government and CSOs not to have that convergence and implement kumbaga yung good relationship between the government and civil society organization as the representatives of the civil society organizations or by serving as watchdogs in the implementation of the programs and projects of the national government.

Concerns addressed during the open forum.

Ms. Raisza Mae Anatayin: Ma'am Jing, baka may ideas ka already or recommendations based on your experience and studies kung paano kaya pa natin mafeel at the local level yung concrete samples of engagement? To ensure accountability naman, ito madalas sinasabi or kina-counter ito sa atin ng government, how do we ensure when we partner with CSOs ano yung accountability measures in place?

Dr. Divina Luz J. Lopez: Siguro Bai, I will answer the challenges kasi pagdating sa experiences sa challenges ng convergence medyo marami naman talagang nasasabi si Mayor Honey kanina. I think yung challenge ngayon, maraming mga opportunities for engagement. In fact, padami nang padami and palevel-up ng palevel-up. Sabi nga ni Dir. Anna kanina, CSOs are now being encouraged to participate not only in monitoring project level but plan level, assessment, for example, CDP, medyo mataas na level na yun. Parang, you know those opportunities can be overwhelming to the CSOs on the ground.

Number one, kung hindi malinaw sa kanila yung what's in it for them, the incentives part, mas mahirap sa kanila kasi they will really invest their time, their talent, their energy for them to be able to participate meaningfully in those spaces for participation. So, to me, the challenge there is may malinaw din na what's in it for them na yung incentive’s part.

I think much more the bigger the challenge ng CSOs is yung capacity ng CSO, the higher the requirement for them on the level of knowledge and yung expertise ang kailangan, kumbaga hindi naman yun ganun kadali. Ang nakita ko dito, one way to address the capacity gaps is meron kasing support system na nake-create along the way.

I would like to mention particularly yung move ngayon ng DILG to promote the formation of CSO desks plus the formation of people's council. For me, very vital ang role ng people's council. Many years ago, inapprove na namin yung pagiging critical ng function ng coalition of CSOs na working for a common cause through engaging government. Yung formation of yun nga, mga municipal and provincial councils’ ng CSOs in those areas. Importante yun kasi marami siyang functions, yung representation issue, pwede silang magkaroon ng role to define the criteria. They can also serve as daluyan ng capacity building interventions, right? In a more systematic manner. Pwede silang maging daluyan ng information that are important for the CSOs to get their access better together, to engage, so parang to make a support system yung people's council. Huwag lang siyang ma-elite capture, I think yung ganung support in terms of policy ng DILG is really coming from the good experience nila Ms. Araw, nila Sir Boyet Areno ng Iloilo. We are not talking here of the Naga City NCPC, but all other cities and provinces to demonstrate the successful experience in terms of the role of the people's council. The CSO desk importante yung mas magkakaroon ng focal point, focal na office in an LGU that concerns itself ng mga CSOs na pangangailagan.  So para sa akin i-harness yun, kailangan alalayan yung capacities na required din sa CSOs for them to be able to measure up to expectations na pataas din to engage government. Sino yung tutugon non yun capacity gap na yun.

For one, CSO can hardly survive.  Nagkaroon ng donor fatigue many years ago at nung nagkaroon ng COVID nacut-off na rin ang kanilang mga relationship in terms of funding sources.  You can only give what you have, so that should also be a concern that you provide the supply side but the demand side can only do its role while supply lasts. Many of our CSOs na nasa survival mode. So, to me, I think it is important to harness, to develop a support system locally para doon sa paghelp na malevel-up yung capacity ng CSOs. And I'm really pointing to the role of the people's council and the CSOs desk.

Concerns addressed during the open forum.

Paano natin maensure ang accountability, especially with the Mandanas ruling na super lalaki ang budget ng ating LGUs and madedevolved yung some of the services, how do we ensure accountability in the implementation of the Mandanas ruling? Are there penalties and disciplinary actions for LGUs who do not engage with CSOs?

Dir. Anna Liza F. Bonagua: So ang tanong is how do we ensure accountability? Well, even before the Supreme Court ruling there are already established mechanisms for the local government units. Marami tayong mga performance assessment tools, sa DILG meron tayong Seal of Good Local Governance at marami pa 'yang mga anak anak. Sa DBM meron tayong PFMAT and then Iskor Ng Yong Bayan sa DOF and even the sectoral agencies may kaniya kaniya sila ding performance monitoring - yung competitiveness index ng DTI, and a lot more.

Siguro, ang pagkakaiba lang ngayon is ang LGU ay magkakaroon ng greater resources so the more na dapat nating strengthen yung mga accountability mechanisms to ensure that these are put to good use by the LGUs. We are updating the guidelines and ensuring coherence from planning, investment programming to budgeting and kasama dun yung CSOs participation and processes along that area. Ngayon din tinitingnan alinsunod sa bagong batas  ng Seal of Good Local Governance at dahil nag-increase rin naman yung responsibilities ng local government units.

From last year hanggang ngayon ina-update natin yung performance indicator ng Seal of Good Local Governance. Inilalagay natin yung compliance ng local government units sa governance mechanism sa entitlement nila sa mga support program naman ng national government. Like for example, itong darating na kung sakaling maaprubahan ng Congress yung equity fund. Kaakibat ito sa compliance nila sa governance indicators or sa governance mechanism. Tina-tie up natin yung performance nila sa incentives naman na binibigay natin. Yun lang naman ang nakikita ko, isa yan kaakibat ng lahat ng yan na ginagawa ng national government ay yun ngang presence ng civil society organizations. Sila yung titingin at nandoon sa ground.

Siguro ang nakikitang challenge naman ng local government units with regards to the CSOs’ participation yung local presence.  While they are active national advocates sa taas, very competent. Minsan pagdating sa baba wala silang local presence. Yan ang nagiging feedback sa amin ng mga local government units. Minsan nagke-create sila ng kanilang civil society organizations to address different concerns of the different sector. Then yun ding umbrella coordination support kasi kailangan may mag-handle sa kanila, from the top to the ground. Kasi parang tulad ng government merong structure from the higher - national, regional. Siguro dapat may ganung structure ang CSOs that will guide them, ano ba dapat ang ating binabangga at isinusulong sa local government? Kasi kung manggagaling din sila sa LGU syempre kung ano yung priority ni LGU, they will just have to support that. Pero kung meron silang sariling structure or network from up na nagsasabi sa kanila na ito yung dapat nating gawin and also nagca-capacitate sa kanila on how to engage with local government units baka kailangan meron ding ganung structure.

Dir. John Aries S. Macaspac: Yes, tama si Dir. Anna.  Nasabi na niya lahat ng mga existing systems namin to ensure the accountability of the local government officials at personnel and siguro I would just like to zero in dun sa mga existing policies natin na dinagdag natin to ensure the accountability of the local government units.

Sabi ko nga kanina, start of the implementation of the Mandanas-Garcia ruling yung mga LGU at NGAs magpeprepare sila ng kani-kanilang mga Devolution Transition Plan.

On the part of the NGAs, yung important component ng kanilang DTP ay yung definition of standards of the delivery for the devolved services which will include yung mga minimum cost, the scope and quality of services that should be complied with by the local government units and they are already implementing the programs and projects. Kaakibat nun isa pang importanteng component ng Devolution Transition Plan ng NGAs is the framework for monitoring and performance assessment of the local government units which may include the grant of incentives as mentioned by Dir. Anna earlier. Katulad ng GEF, and the imposition of sanctions. Yun yung sa national government, meron silang standard na ipeprescribe at meron silang performance monitoring na kung saan titingnan nila whether or not the local government unit is complying with those standards. On the part of the LGUs, meron din silang LGU DTP and the primary purpose of the LGU DTP is for the national government agencies to have the guidance or basis on the monitoring and performance assessment naman of the LGU.

So yun yung mga systems na nailagay namin na pwedeng guidelines at pagmulan ng mga findings natin or observations or corresponding actions that need to be undertaken to resolve or address the possible inefficiencies and ineffectiveness that may occur in the implementation of the local government units of the programs and projects from the increase of their financial resources.

Now, sa tanong naman kung meron bang penalty in the part of the LGUs that will not engage the CSOs in the process? Well sa ngayon yung ano talaga natin is more of a carrot approach eh, like in the case of Public Financial Management Assessment Tool ng DBM, we have the citizen participation as one of the critical dimensions, pitong critical dimensions yun and one of the critical dimensions is the citizens participations and meron pang mga sub-indicators doon which determine the level of compliance of the LGUs in engaging the citizens in the planning and budget process. So, kung yung LGU for example hindi niya sinasama yung mga CSOs in the planning process, hindi sinasama sa budget process - budget implementation, budget implementation process, mas mababa yung score na makukuha niya which subsequently may affect the possibility or probability of that LGU getting a financial assistance from the available subsidies provided by the national government. Katulad nga ng local government support fund at na kung saan naisama yung growth equity fund ngayon na bagong assistance sa mga LGUs na related din sa implementation ng additional functions and services by the LGUs pursuant to the implementation of the Supreme Court ruling on the Mandanas-Garcia case.

Concerns addressed during the open forum.

Paano ang pagpili ng kinatawanan ng CSO para maging kinatawan sa mga komite?

Department of the Interior and Local Government (DILG)

Pursuant to Section 4.2 of DBM-DILG Joint Memorandum Circular (JMC) 2021-1, dated 11 August 2022, the LGU Devolution Transition Committee (LGU DTC) shall be composed, among others, of at least two (2) representatives from civil society organizations (CSOs) and people’s organizations (Pos) that are members of the Local Development Council (LDC).

As such LGUs should choose among the CSOs/Pos that are members of the LDC. The strategy however is left with the LGU.

Concerns answered through a letter/email response.

What will happen to LGUs na hindi napapatupad ang DTP after years? May penalty ba? (Item 2)

Department of the Interior and Local Government (DILG)

While there are no sanctions/penalties provided under the DBM-DILG JMC No. 2021-1, sanctions for dereliction of duty are already provided under the Local Government Code (LGC) of 1991. Using persuasion as a strategy, the policies issued emphasized the importance and value of the LGU DTPs that should propel LGUs to seriously consider and comply with the LGU DTP requirement.

Under Section 10 of EO No. 138, LGUs were instructed to formulate and prepare their DTPs to guide transition in their full assumption of the devolved roles and responsibilities. The wordings of the EO provided the overall purpose and intent of the LGU DTPS as a strategic instrument that can dictate the success of the transition process. Relatedly, DBM-DILG JMC No. 2021-1 more elaborately discussed the specific purpose of LGU DTPs as follows:

• To serve as the LGU’s roadmap to ensure strategic perspective systematic, and coherent actions towards their full assumption of devolved functions and services starting in FY 2022.
• It shall serve as a handy reference in carrying out organizational strengthening efforts and upgrading of institutional capacities in the next three (3) years, i.e., from FY 2022-2022, and in monitoring the progress of the transitional towards full assumption of devolved responsibilities. The DTP shall also be a primary consideration in the formulation of the successor local development plans and investment programs, particularly in identifying and implementing priority programs and activities relative to the devolved functions and services.
• To foster the alignment of priorities and complementation of resources, the LGUs shall use their DTPs to influence the design of the devolution transition activities of the NGAs concerned, and direct NGA support along the capacity requirements of the LGUs.
• To leverage support from other governance stakeholders including NGOs, CSOs, Pos, business sector, and academic institutions as the LGUs engage them for cooperative undertakings during the devolution transition period, particularly on the areas of capacity building, service delivery, and livelihood development.
• To serve as guide in the monitoring and performance assessment of the LGUs by the DBM, DILG, and NGAs concerned.

Concerns answered through a letter/email response.

How can we make our local PWD Organizations as accredited CSO of DILG? May babayaran ba?

Department of the Interior and Local Government (DILG)

The accreditation guidelines are set by the Local Sanggunian, as provided by law. The DILG has also been issuing circulars every after election to provide guidance on the participation of the CSOs and their representative in the Local Special Bodies. More recently, the DILG issued Memorandum Circular (MC) No. 2019-72 Guidelines on Accreditation of Civil Society Organizations and Selection of Representatives to the Local Special Bodies, dated 22 May 2019.

Concerns answered through a letter/email response.

If there will be standard performance indicates across all LGUs, how now will the unique conditions of the LGUs can be considered?

Department of the Interior and Local Government (DILG)

That is the reason why NGA and LGU DTPs are drafted to contain phasing and capacity building strategies; framework for monitoring and assessment of performance of LGUs; and an organizational effectiveness proposal to reflect modifications in NGA and LGU structure and personnel complement.

The performance standard provides the acceptable standard or “target” level of LGU performance in service delivery. However, the phasing strategy presumes that said standard is expected to be achieved gradually, in a phased manner and the package of capacity building that should consider the LGU’s unique situation is expected to help LGUs fully assume the devolved functions and achieve that standard level of performance or maybe even more. The organizational assessment seeks to address gaps in manpower complement while the monitoring framework intends to enable LGUs and NGAs to be aware of LGU performance in the delivery of service so that gaps can accordingly be addressed, and capacity building interventions be made more responsive to the evolving needs of the LGU.

Nonetheless, the setting of performance indicators may still be contingent on certain established parameters such as LGU level, population, among others. Cognizant of the varying capacities and profile of LGUs.

Concerns answered through a letter/email response.

What if the MAO or Municipal Agriculture Office won’t cooperate with us farmers organization?

Department of the Interior and Local Government (DILG)

The issue/concern may be reported to the Local Chief Executive (LCE) since the LVE has administrative oversight over LGU Department Heads.

Concerns answered through a letter/email response.

Director Bonagua, in the event that the CSOs are asked to implement a certain project or activity of an LGU, will they be required to register with the PHILGEPS?

Department of the Interior and Local Government (DILG)

It depends upon the type of project or activity, if said project will be implemented through competitive bidding, the corresponding Government Procurement Policy (GPPB) policies to include PHILGEPS registration will apply.

Concerns answered through a letter/email response.

Are the CSOs included in the capacity building agenda of the LGUs in their DTPs?

Department of the Interior and Local Government (DILG)

CSOs, pursuant to Section 4.2 of DB-DILG JMC No. 2021-1, can take an active role in the formulation and implementation of the DTPs of LGUs. Through the DTPs, LGU can leverage support from other governance stakeholders including NGOS, CSOs, Pos, business sector, and academic institutions and engage them for cooperative undertakings during the devolution transition period, particularly in the areas of capacity building, service delivery, and livelihood development.

Concerns answered through a letter/email response.

How can LGUs appreciate evidence-based decision making?

Department of the Interior and Local Government (DILG)

Evidence-based decision-making entails the use of data and the adoption of monitoring mechanisms to make informed decisions. The Department has long since advocated for LGU adoption of Community-Based Monitoring System (CBMS) for planning and even prior to the Supreme Court decision on the Mandanas and Garcia petitions issued policies to promote systems, tools, and instruments to strengthen planning, budgeting, and expenditure management. All of these policy reforms and tools are anchored on LGC provisions and pertinent laws that prescribes the local Public financial Management (PFM) processes.

The four (4) PFM Oversight Agencies: DILG, NEDA, DBM and DOF already issued Joint Memorandum Circular (JMS) No. 1 Series of 2007 that prescribed strategies to strengthen planning, budgeting, and expenditure management linkages; and clarified delineation of responsibilities among planning agencies. Said policy triggered NG assistance to LGUs for the improvement of planning that serves as a reference or guide for on LGU strategic directions and priorities.

New tools, systems, and strategies to enhance PFM systems were subsequently introduced through DILG-NEDA-DBM-DOF JMC No. 1 Series of 2016. In light of the implementation of the Supreme Court Ruling in FY 2022, the four (4) PFM Oversight Agencies continues to pursue updating of DILG-NEDA-DBM-DOF JMC No. 1 Series of 2016 to make it more attuned to the requirements of the transition to full devolution as provided under EO No. 138.

Concerns answered through a letter/email response.

All government’s local and national programs/services are downloaded to the LGUs; the PLGUs and MLGUs have their Department Offices, but for the BLGUs where all such programs/services are downloaded to them without such management/governance structure, eventually made them ineffective/inefficient, any strategy or measures on this?

Department of the Interior and Local Government (DILG)

Barangays relatively have fewer devolved functions than their higher tier counterparts.

Cities and municipalities are largely responsible for providing the necessary assistance to constituent barangays whenever the latter cannot perform their functions on their own. NGAs working in the locality can also be called upon to assist.

Concerns answered through a letter/email response.

What will happen to LGUs who were not able to submit their DTPs by December 12, 2021?

Department of the Interior and Local Government (DILG)

No subsequent guidance or advisory on an extension on the deadline for submission of DTPs of LGUs was issued. However, late submissions of LGU DTPS were accepted through the LGU DTP Repository being maintained by the DILG.

It should be noted however that while there are no sanctions/penalties provided under the DBM-DILG JMC No. 2021-1, sanctions for dereliction of duty are already provided under the Local Government Code (LGC) of 1991.

Concerns answered through a letter/email response.

Do our resource persons see a need for the amendment of the LGC, as well as the enactment of new laws that can support the full implementation of the SC ruling on devolution? What are these?

Department of the Interior and Local Government (DILG)

Even prior to the Supreme Court decision the Public Financial Management (PFM) agencies, NEDA, DILG, DBM and DOF, consistently pushes for the issuance of policies and lobbies for the passage of bills promoting transparency, accountability, and good governance to include amendments to the discal provisions of the 1991 Local government Code cognizant of devolution issues arising from the adoption of the 1991 LGC. These include bills instituting reforms in the schedule of market values, computation of IRA, and income reclassification, among others.

Concerns answered through a letter/email response.

As we are in the process of organizing the People’s Councils at barangay, municipal, towards provincial level through the PLGU, there is political bias on the side of the political leaders, would it be possible that implementation of MC in institutionalizing the POs be spearheaded by the DILG?

Department of the Interior and Local Government (DILG)

DILG-MC No. 2021-054 was issued to further create an enabling policy environment and provide opportunities for CSOs to engage in the implementation of government programs and to participate in the local governance processes through the establishment of a CSO Desk and the institutionalization of People’s Council is envisioned as an autonomous body composed of members from civil society through which they can participate in the local governance processes. They are therefore encouraged to be proactive partners in these opportunities, and not allow themselves to be influenced or used for partisan politics or religious purposes. Failure to do so constitutes a basis or ground for revocation of its Certificate of Recognition from the Sanggunian. Any political interference prior to and during the creation of the People’s Council should accordingly be reported to the DILG Field Offices.

Concerns answered through a letter/email response.

What will happen to LGUs na hindi napapatupad and DTP after 3 years? May penalty ba?

Department of the Interior and Local Government (DILG)

Please refer to response in item no. 2.

Concerns answered through a letter/email response.

Would it be possible to provide budget/funds for the projects/endeavor initiated by the Pos/CSOs integrated to the local plan?

Department of the Interior and Local Government (DILG)

If the proposed project is included in the priority investment program of the local governments contained in its local development plan, there is a possibility for it being funded since the local development plan serves as reference in the preparation of the annual budget.

As provided under Section 34-36 of the LGC, LGUs shall promote the establishment of NGOs and Pos to become active partners in the pursuit of local autonomy. LGUs may enter into joint ventures and such other cooperative arrangement with NGOs and Pos to engage in the delivery of certain basic services, capability-building and livelihood projects, and to develop local enterprises designed to improve productivity income, diversify agriculture, spur rural industrialization, promote ecological balance, and enhance the economic and social well-being of the people.

Through the LCE and with the concurrence of the Sanggunian concerned, LGUs may provide assistance, financial or otherwise, to such NGOs and Pos for economic, socially oriented, environmental or cultural projects to be implemented within its territorial jurisdiction.

Concerns answered through a letter/email response.

EO 138 assumes bigger roles of LGUs that entail additional workload. How will LGUs cope with this?

Department of the Interior and Local Government (DILG)

The EO provides that starting FY 2022, LGUs shall be primarily and ultimately be responsible and accountable in providing funds for the implementation and delivery of devolved functions and services pursuant to Section 17 of the LGC and other existing laws which subsequently assigned new functions to LGUs.

An LGU’s unique situation, characteristics, capacities, and current state of development dictates the phasing by which it can fully assume the functions and services devolved to them. Section 5 of EO No. 138 requires LGUs to develop their respective LGU DTPs. Said document shall contain an LGU inventory of devolved functions that it is currently performing, and capacity development requirements to include adjustments in its organizational staffing and competency requirements identified as necessary for the to be able to fully assume said functions by end of FY 2024, the end of transition period as stipulated in Section 4 of the said EO. It shall map out the phasing of LGU transition to full devolution in consideration of its resources, priorities, and capacities.

The Capacity Development (CapDev) Agenda, as an integral component of the LGU DTPS, provides a comprehensive assessment of LGU readiness to assume sector specific devolved functions. Formulation of the CapDev Agenda is based on the assessment framework and guidelines issued by the DILG-LGA. Based on the assessment, and in consideration of LGU priorities and NHA DTPS, if available, LGUs shall reflect the capacity development requirements necessary for them to be able to absorb, manage, and sustain the responsibilities under a full devolved set-up.

The phasing as well as the strategies and approached that shall be employed in LGU implementation of transition initiatives therefore are unique for each and every LGU but with a common end goal of fully assuming devolved functions by 2024.

Local government are thus expected to strengthen their capacities to exercise stewardship of their increased fiscal resources; enhance their organizational capability for service delivery; and institute transparent, accountable, and participatory mechanisms to better achieve national and local development objectives as it adopts strategic approached, define and plan out progressive performance targets attuned to its priorities and capacities. LGUs are encouraged to establish robust partnership with NGAs, private sector, NGOs, CSOs, POs, and academic institutions as providers of technical expertise and information, innovations, and governance models on service delivery to facilitate LGU build-up of capacities and to further inform developmental strategies.

Concerns answered through a letter/email response.

From which government agencies will the Civil Society Organizations (CSOs) get detailed information about programs and projects that are being devolved/transferred to local government units (LGUs)?

Where can citizens/CSOs get more information about the Mandanas ruling/Executive Order (EO) No. 138, s. of 2021, especially the devolved services?

Department of Budget and Management (DBM)

May we note that the PPAs that are proposed to be phased out/scaled-down by the National Government Agencies (NGAs) will be identified in the Devolution Transition Plans (DTPs) of the NGAs concerned. As of date, the DBM, through the Systems and Productivity Improvement Bureau, is still in the process of evaluating the submitted DTPs of the NGAs concerned. All DBM-approved NGA DTPs will be uploaded on the DBM website and on the respective websites of the agencies concerned.  

In the meantime, the CSOs may inquire directly to the NGAs concerned about programs and projects that are proposed to be phased out/scaled down. 

Concerns answered through a letter/email response.

Will the devolution result to increase in salary grades of LGU employees since they have more functions?

Department of Budget and Management (DBM)

EO No. 138 directs the full devolution of certain functions of the Executive Branch to Local Governments. Hence, the LGUs are expected to assume the primary responsibility of implementing the devolved functions and services pursuant to Section 17 (b) of the Local Government Code of 1991 (Republic Act [RA] No. 7160). Consequently, this may necessitate the hiring of additional personnel who will implement the devolved functions and services.  

Nevertheless, it is to be emphasized that there are certain budgetary limitations, like the Personal Services limitation, and salary schedule and ceiling, that the LGUs have to comply in determining the salaries and other compensation of their personnel, consistent with existing laws and policies.  Hence, the full devolution of functions to LGUs may not necessarily result to an increase in the salary of its personnel.

Concerns answered through a letter/email response.

What is the status of the proposed Growth Equity Fund (GEF)? Is the proposed 10 billion approved in the budget hearing?

Department of Budget and Management (DBM)

In the FY 2022 NEP, an amount of PhP 10 billion was proposed for the Local Government Support Fund (LGSF)-GEF. However, under Special Provision (SP) No. 3 of the LGSF-GEF in the approved FY 2022 General Appropriations Act (GAA), RA No. 11639, the amount appropriated by Congress for the LGSF-GEF was only Php 1,250,000,000.00. Said amount shall be used as additional financial transfer to the identified poor, disadvantaged, and lagging LGUs for the implementation of priority projects to gradually enable the full and efficient implementation of the devolved functions and services of the LGUs concerned.

Concerns answered through a letter/email response.

Do our resource persons see the need for the amendment of the Local Government Code (LGC) of 1991 (Republic Act [RA] No. 7160), as well as the enactment of new laws that can support the full implementation of the Supreme Court (SC) ruling on devolution? What are these?

Department of Budget and Management (DBM)

May we recommend coordinating with the DILG and the Congress of the Philippines which has a list of laws that seek to amend RA No. 7160.

Concerns answered through a letter/email response.

Have there been studies or assessments on CSO engagement? What are the findings?

Department of Budget and Management (DBM)

May we inform that the LGRCB has not conducted any study or assessment on CSO engagement with the LGUs. With this, we respectfully suggest obtaining the comments and inputs of the Department of the Interior and Local Government, being the agency that issued the guidelines on the accreditation of CSOs in the LGUs. 

As to the engagement of the CSOs with the NGAs, we defer to the comments of the Budget and Management Bureaus concerned and the PH-OGP as this fall under their functional jurisdiction.

Concerns answered through a letter/email response.

Where is the youth, particularly youth-led CSOs and NGOS, in the whole picture of full devolution?

Dr. Divina Luz Lopez

It is said that the youth can potentially become a change agent. They can be a driving force for change and cultural transformation.  Their involvement in the nation building process is crucial as they play one of the most important roles.

Within the context of devolution, the participation of the youth can be channeled via established mechanisms for citizen participation in the budget process such as the Local Development Councils, and the committees that are working under the auspices of the LDCs.  More specifically, the Local Council for the Protection of Children is mandated to work for the advancement of child's rights and implements all children's programs at the local levels.

However, given the profile of CSOs that have mainstreamed in formal avenues for participation in local governance in the country, the youth sector is the least represented.  This may have something to do with the specification in the age limit that caused the “transitioning” status of its members.  As an alternative, Youth Advocates such as the Youth Advocates for Theater Arts (YATTA) based in Dumaguete City can still represent the youth sector in the mandated local bodies that are involved in planning and budgeting processes.

Concerns answered through a letter/email response.

Do we have a national CSO group that partner with the NGA on the monitoring at the LGU nationwide?

Dr. Divina Luz Lopez

CODE-NGO is in the best position to be tapped for the purpose since its membership included not only national networks of NGOs but also regional and provincial networks of CSOs that have NGOs, People’s Organizations, cooperatives, faith-based organizations as base members. Code-NGO and its members would have the needed track record and technical expertise in conducting M&E at the local levels.  We observe that in not a few cases, trained members on M&E of Code were tapped by the LGUs themselves in terms of monitoring locally-funded projects.

Concerns answered through a letter/email response.

Do our resource persons see a need for the amendment of the LGC, as well as the enactment of new laws that can support the full implementation of the SC ruling on devolution? What are these?

Dr. Divina Luz Lopez

Yes.  For one, there is a need to link planning and budgeting to plan implementation and management.  There is a disconnect between the work of the LDC (that ends in completing the process of investments programming) and the system of implementation and M&E.  In my almost 27 years of practicing planning this has been a common observation by ENPs.   I will share a longer explanation of this observation and proposal. (Note: will look for my file over this weekend).

Concerns answered through a letter/email response.

Where is the youth, particularly youth-led CSOs and NGOs, in the whole picture of full devolution?

Dr. Jing Lopez: It is said that the youth can potentially become a change agent. They can be a driving force for change and cultural transformation.  Their involvement in the nation building process is crucial as they play one of the most important roles.

Within the context of devolution, the participation of the youth can be channeled via established mechanisms for citizen participation in the budget process such as the Local Development Councils, and the committees that are working under the auspices of the LDCs.  More specifically, the Local Council for the Protection of Children is mandated to work for the advancement of child's rights and implements all children's programs at the local levels.

However, given the profile of CSOs that have mainstreamed in formal avenues for participation in local governance in the country, the youth sector is the least represented.  This may have something to do with the specification in the age limit that caused the “transitioning” status of its members.  As an alternative, the role of existing Youth Advocates that offer relative predictability in terms of their presence can be harnessed.  An example would be the Youth Advocates for Theater Arts (YATTA) based in Dumaguete City that can still represent the youth sector in the mandated local bodies that are involved in planning and budgeting processes.

Do we have a national CSO group that partners with the NGA on the monitoring at the LGU nationwide?

Dr. Jing Lopez: Code-NGO is in the best position to be tapped for the purpose since its membership included not only national networks of NGOs but also regional and provincial networks of CSOs that have NGOs, People’s Organizations, cooperatives, faith-based organizations as base members. Code-NGO and its members would have the needed track record and technical expertise in conducting M&E at the local levels.  We observe that in not a few cases, trained members on M&E of Code were tapped by the LGUs themselves in terms of monitoring locally-funded projects.

Do our resource persons see a need for the amendment of the LGC, as well as the enactment of new laws that can support the full implementation of the SC ruling on devolution? What are these?

Dr. Jing Lopez: Yes.  For one, there is a need to link planning and budgeting to plan implementation and management.  There is a disconnect between the work of the LDC (that ends in completing the process of investments programming) and the system of implementation and M&E.  In my almost 27 years of practicing planning this has been a common observation by ENPs.   I will share a longer explanation of this observation and proposal. (Note: will look for my file over this weekend). 

Below is a follow up explanation re opportunities to maximize the full implementation of the SC ruling on devolution.

Insights on the devolution process and areas for improvement in the PFM-PIME cycle

by Divina Luz J. Lopez, PhD, EnP^[i]

On the Planning Process

1. The full assumption of devolved functions by the LGUs will not alter the local planning process as long as they follow the planning provisions of the Local Government Code. By process is meant the production of the comprehensive plan documents. For far too long, the planning process in most local governments ends with the completion of the comprehensive plans.

2. The big change that this DTP seeks to accomplish is to push local planning forward into the systematic implementation of plans. This requires another level of planning: Planning to implement the plans. Some countries call it corporate or institutional action planning. Unfortunately, this practice has not taken root in the Philippines. But if LGUs are perceptive enough, this is exactly what the DTP is trying to introduce. Hopefully, the practice will be institutionalized.

What does institutional action planning require?

2.1 The conceptual articulation with, and break from comprehensive planning. Strictly speaking, development planning ends with the identification of policy interventions to issues, problems and opportunities analyzed throughout the planning process. Such policy interventions are classified into programs/projects, non-projects or services, and ideas for new legislation. The Local Development Council (LDC) goes one step further by coming up with a priority list of projects for inclusion in the 3-year Local Development Investment Program. The LDIP is the point of overlap between development planning and the implementation phase. The LDIP is also the take off point of planning for implementation which is the function of another planning body.

2.2  The creation of another planning body, call it corporate planning body.  The corporate or action planning body consists of the heads of the Executive Department representing the offices in charge of implementing specific projects and services. Headed by the Mayor of City Administrator, this planning body has for its key member the CPDC who is responsible for inputs from the comprehensive plans and LDIP; the City Treasurer who attests to the amount and availability of investable funds; the Budget Officer who has knowledge of the actual allocation of funds for each office and department of the local government; and the head of the Human Resource Development Office to look into the personnel capacity of each office. A representative of the Sanggunian is also a key member.

The composition of the committee created to prepare this DTP would be a good start. It could be expanded later as the need arises.

2.3  More refined costing of priority projects. It must be assumed that the costing of LDC-prioritized projects are rough estimates. For purposes of actual budget allocation, a more refined cost estimate is needed to avoid cases of over- or under-funding of implemented projects. With the help of the technical personnel of the implementing offices who are supposed to be abreast with prevailing industry rates, they could arrive at more realistic project cost estimates.

2.4  Analysis of the capacity of the LGU to implement programs, projects and services. After firming up the estimate of the cost of projects and services to be implemented, this is matched with the capacity of the implementing unit in terms of the technical knowhow, the actual budget allocated to that unit, the availability of technology, systems and procedures, and equipment and other logistical requirements necessary to see a project through to its completion. Depending on the capacity of the implementing unit, the phasing or timing of implementation may be altered and the priority set by the LDC may not be followed to the letter.

2.5  Monitoring and evaluation of program/project implementation. Program and project implementation M&E must now be distinguished from outcome and impact M&E. The first type is done internally by the implementing unit to monitor the timeliness of the inflow of project inputs, the efficiency of producing the project outputs, and the appropriateness of the technology or process used. The findings are fed back to inform the design of next year’s projects.

The second type of M&E is the function of the City Planning and Development Office with the assistance of the different sectoral committees of the LDC. Outcome M&E is concerned with the effects of the implemented projects and services on the intended beneficiaries to see whether the objectives of the intervention were realized. Information derived are fed back into the data base or the Ecological Profile as an input to the next cycle of preparation or revision of the comprehensive plans.

As an input to the next cycle of comprehensive planning, the corporate action planning body shall provide the LDC with a report stating, among others, which of the LDC-prioritized projects were completed, which were not implemented, and which are still in progress, at the end of each 3-year administrative term.

[1] With proper permission, this has been culled from exchanges with and write ups of Prof. Ernesto M. Serote, Professorial Lecturer, School of Urban and Regional Planning, UP Diliman, Q.C.  Prof. Serote is currently also serving as in-house consultant of the City Government of Quezon City, esp. in the formulation of the DTP of the latter.

Role

Agency / Organization

Resource Speaker

Opening Remarks

Department of Labor and Employment

Undersecretary Benjo Benavidez

Public Services Labor Independent Confederation – National Public Workers’ Congress (PSLINK-PUBLIK)

Mr. Edilberto P. Pardinas

Resource Speaker

Department of Budget and Management

Undersecretary Kim Robert De Leon

Department of the Interior and Local Government

Director Anna Liza Bonagua

Reactors

Bislig City Employees Association

Mr. Anvic Federizo

PSLINK Consolidated Council of Health and Allied Professions

Ms. Sarah Gretchen A. Adeva

Panelists

Civil Service Commission

Assistant Commissioner Rodolfo Encajonado

Department of Budget and Management

Ms. Rowena Marte

Closing Remarks

Department of Budget and Management (DBM)

Undersecretary Rolando U. Toledo

Emcee, Moderator

Public Services Labor Independent Confederation – National Public Workers’ Congress (PSLINK-PUBLIK)

Ms. Jillian Roque

Youtube Replay

Facebook Replay

Session Design

Presentation

How can the LGU personnel service cap be addressed in the implementation of Mandanas-Garcia SC ruling?

Usec. Kim Robert De Leon:  For 2022 General Appropriations Act tayo ay nagproposed ng Personnel Service cap exemption from the PS cap para sa mga position na talagang nakatoka para sa ating mga devolved functions. So ibig sabihin po nito kung ang general provision na ito ay maapproved ng ating kongreso ultimately ng ating presidente. Yung mga position na fifill-upan, ike-create para matugunan ang mga mandato ng EO 138 ay hindi isasama sa computation ng PS limitation. Ito yung nakikita nating solution sa concern kanina sa "hindi makapaghire ng additional manpower dahil sa PS limitation". So that is one, yun ang prinopose natin na PS cap exemption.

At ito naman hanggang meron tayong transition period ay sisikapin natin ma-assess kung dapat ba natin itong mailagay taon-taon until such time the LGUs are already prepared to absorb this devolved functions even without the PS cap exemption. Ngayon siguro, i-segway ko na lang din Miss Jill yung sagot kanina yung kasing usaping sweldo, hindi ito yung tinitingnan or dinadaanan ng EO 138. Dahil ang usaping sweldo ay governed by a separate issuance. In fact, it is a law. This is the Salary Standardization Law ngayon ay SSL V.

Ngayon, pinapatupad ito I think two years from now. At yung SSL ay tinatadhana niya yung para sa pamahalaan talagang standardized. Meaning isa yung rates na pinapatupad at pagdating sa mga lokal na pamahalaan ito ay nakabatay doon sa income level o sa kakayahan niyang magpa sweldo. And papasok nga yung isa pang batas which is yung local government code na sinasabi niya rin doon yung PS cap. In some LGUs 55% of their budget can be spend for personal services. But we would like to assure naman our colleagues na nandito ngayon na nakikinig. Meron namang enough na mechanisms para masiguro na patuloy namang magiging competitive ang ating mga sweldo.

Number one, regular yung pag-update ng SSL natin. In fact, wala tayong mintis diyan a year on year at ito ay talagang resulta ng pag-aaral natin including market survey para masiguro na hindi malayo ang sweldo ng private sector with the government sector. In fact, with some sectors or profession mas competitive na yung salary sa ating public sector. Nandiyan pa yung provisions natin katulad ng exemption sa PS cap computation para masiguro na makakapag hire pa din despite yung PS limit lalo na yung in lieu of EO 138. Lalo na ultimately, meron din tayong provisions sa mga yearly circulars ng DBM even without EO 138.

For example, for specific public health workers if I'm not mistaken may provision tayo doon na if the LGU is financially able o may kakayahan ang lokal na pamahalaan pwede naman siya magbayad ng equivalent don sa national government rate. Provided na meron siyang financial capacity and capability na ma-cover yung kanyang rate na yun kung kanyang iaadopt yung rate na yun.

Concerns addressed during the open forum.

May pahabol na tanong, related kasi ito sa question patungkol sa PS Cap. May pahabol na comment. If that is the case, the principles of equal pay for equal work and work of equal value is not observed sa poor LGUs. Lalo na doon sa 3rd to 6th class LGUs.

Usec. Kim Robert C. De Leon: Well, ito yung maari kasi natin itong tignan dahil may iba iba tayong factors na kinokonsider.

As I mentioned kanina, hindi lang ito isang batas na nag-operate that governs salaries of government workers. We have the SSL, we have the PS Cap as provided for by the Local Government Code. Meron ding mga special laws that provides for specific benefits. For example, Magna Carta for Public Healthcare Workers, among others. So yun yung iba't ibang origin na sinusundan natin pagdating sa pa-sweldo. But ito, palagi naman nating sinasama natin yan sa consideration.

Kaya nga lang, even if, for example, we will encourage all LGUs to adopt the highest scale meaning the national government rate pagdating sa LGUs. Meron siyang kakaharaping isyu is yung PS Cap that is provided for by a separate law which is the Local Government Code.

Binabalanse natin pagdating sa pagseset ng ating salary scheme ng ating mga manggagawa sa pamahalaan.

Nevertheless, ito naman hindi na, wala ng restriction sa iba kagaya ng mga benepisyo na idinadagdagan natin outside the what is already provided.

Katulad nung nakaraan meron tayong inauthorize na hazard pay. Pero again, may limitation kapag tumawid sa doon sa ibang batas. Kasi ultimately makikita mo even PBB ay governed or covered pa rin ng pertinent provisions of the Local Government Code particularly yung kanyang PS spending limitation.

Concerns addressed during the open forum.

Meron din pong nagpaabot ng katanungan. Makakatulong po ba sa aming mga BHWs ang usaping nagaganap na ito?

Usec. Kim Robert C. De Leon: Medyo malawak kasi yung tanong eh. Hindi natin masiguro kung anong aspeto ba ng tulong ang tinitingnan natin dito. But for one with more resources ang magiging available kasi kung barangay ito. Including the barangays will benefit from increased NTA allotment.

Ibig sabihin may mas malaking budget na pwedeng pagkunan ng mga supplies or I believe honorarium ang binibigay sa mga BHWs ng mga resources, kagamitan para magampanan ang mga tungkulin ng BHWs.

Kung dati ay kulang, kahit papaano ngayon ay may additional resources. Hindi natin sinasabi na makukumpleto, macocover lahat, maibibigay lahat. But we are saying is that more resources will be available. We hope that services would be improved. Provision of services through the BHWs would be improved. And of course, higher satisfaction from our clients.

Hindi lang natin masasagot yung specific, for example, benefits ba yung tanong niya kasi minsan case to case ito pagdating sa mga barangay. Even yung pagbibigay ng benepisyo ay governed ng Local Government Code. Ito ay ayon sa kakayahan or financial capacity o capability ng LGU concerned.

Concerns addressed during the open forum.

What are the possible effects of the Mandanas Ruling on the devolved agencies and LGUs?

Usec. Kim Robert C. De Leon: Ibig sabihin ang reference, nadevolved na no? So already devolved. Ang tanong niya ano ang effect ng Mandanas Ruling. Well, walang mababago in terms of employment kasi devolved na siya kasi nasa LGU na. Hindi madidisturb yung kaniyang employment.

Probably, functions wise, yun yung may pagbabago. Dahil wala naman tayong ginagawang devolution dito. As we always emphasize, walang bagong devolution under EO 138. Finufully devolved lang natin what's should have been devolved as early as 1991. Pag ginagamit namin usually yung example nung 1991, dinevolved yung function pero hindi kasama yung resources.

Ang tendency nun, naibaba yung ilang position, yung mga tao pero yung programa sina subsidize pa din ng national government kasi nga hindi naman bumaba yung resources. But now that the resources ay dinedevolve na rin, instead na mag duplicate. It's now in the local government units that should take care of the functions as early as 1991.

So talagang magagampanan lang ng mga na devolved na empleyado yung mga programa at serbisyo na dapat nung 1991 ay ginagampanan na ng ating mga lokal na pamahalaan.

Director Anna Liza F. Bonagua: Actually, yung mga sagot na sagot na ni Usec. Kim. Ano yung mga pagbabago? Tama. Wala namang magiging bagong devolved functions ngayon.

Atin lang finufully devolved kung ano na yung nadevolved nung 1990s with the increased resources sa local government unit. At dahil nadagdagan ng resources ang expectations nating lahat pati ang constituent’s ng mga LGUs ay magkakaroon ng improved service delivery. Kasi marami na silang resources to hire more people. To provide for more supplies and necessary requirements for service delivery.

So yun yung, both at the national and local level. Sa national maganda rin yung mangayayari kasi the national will be able to focus on direct service delivery. In doing oversight and capacity building for local government units habang ang mga local government units ay magiging primarily involved in the actual service delivery to the constituents.

Concerns addressed during the open forum.

Ano po yung role ng CSC sa usapin ng devolution at sa mga personnel sa national and local government units?

Assistant Commissioner Rodolfo Encajonado: Well, ang role naman ng CSC ay we have been actively involved in the discussion of personnel policies and options of affected personnel. Hindi kami nagpirma ng JMC. Kasi sa mandato ng EO 138, DBM and DILG in coordination with the CSC.

And besides, the commission would want to maintain its independence. Kasi we are the final arbiter when it comes to issuance. Kasi baka mag appeal yung aggrieved party. So, the commission will be the one to decide the case.

But anyway, I would like to also inform the participants that the commission already prepared the guidelines. Baka before the end of the year we will be publishing the same. Kasi requirement ang publication and yun na yung magagamit. Dalawang guidelines actually.

First, guidelines and standards on the establishment of OSSP's in the LGU. Napauna na yung model ng OSSP. And I'm sure that nagamit ito ng mga LGUs. Kasi yung model na yun ay 1992 pa ata naprepare ng ating local service provider. Then we have another one which yung usapain natin ngayon na medyo may kinalaman sa affected personnel. The guidelines in policies and options of affected personnel. Para at least siguro I'll give you some idea of what the provisions are. First of course, I affirm the guidelines will be actually issued as complimentary to DILG-DBM JMC 2021-03 issued last September.

And of course, I confirmed that affected personnel who co-opt to transfer pursuant to EO 138 shall have security of tenure. Unless they opt to retire or be separated from the service. The other one is that, we would like to make it clear that transfer would be contemplated under EO 138 and DBM-DILG JMC. It shall be exempt from the following: publication and posting of requirements, human resource merit and selection board promotion screening requirements.

So ang labas it's the responsibility of the office or agency concerned na mag issue ng appointment kung kompleto na ang DTP. And that of course, yung mga dokumento na ito ay kasama yung list of affected personnel whose position will be transferred within the agency or other agencies. The list of affected personnel who opted to retire or separate from the service. So, abangan niyo na lang by next year siguro meron na tayong issuance regarding dito. As I also said a while ago the guidelines that the commission would be issuing is actually complimentary to DBM-DILG JMC.

Concerns addressed during the open forum.

Ano po yung epekto at role ng devolution sa ating mga public sector unions?

Assistant Commissioner Rodolfo Encajonado: As articulated kanina ni Usec. Kim ay yung affected personnel lang naman ng national government agencies or GOCCs in the executive branch of the government. There are three options: 1. transfer in the department agencies or GOCCs within. Incase of transfer with other units within the department agency or GOCC, well, iissuehan sila ng kanilang appointment ng HRMO. Kasi lilipat sila ng ibang unit within 30 calendar days.

Upon receipt of DBM approved NOSCA, based on the existing guidelines of GOCCs. Pursuant to RA 10149. At saka isubmit ito sa CSC within the required period as required.

Another one, under the transfer within the agency. Incase of transfer to another office within the department, agency or GOCCs. Therefore, merong collaboration with the mother agency to the offices within the agency or the department. Ang proseso natin kanina ay pareho with the number one.

Another one is transfer to another department or agencies or GOCCs. So ito naman yung parent agency shall coordinate on the transfer of affected personnel with the HRMO the recipient department, agency or GOCCs which shall include the turnover employment records of the employee. The recipient department agency shall issue an appointment to the transferred personnel within 30 days of the requisite DTP document. So ang requirement pa rin natin ay it should be submitted within the required period as prescribed under CSC rules.

Iba kasi ang recruitment ng regulated agency at saka ng accredited agency. And then may isa pang proseso sa ating transfer to another agency. In case the proposed transfer is denied by the recipient department or GOCC, the affected personnel shall remain in his/her agency. So tama yung sinabi ni Usec. Kim, may security of tenure talaga yung empleyado natin.

By the way, those will be transferred within the agency or to other agencies. Yung kanilang positions shall be coterminous with the incumbent. Meaning as long as they are in that position, they shall be considered under co-terminuous status. Ma-abolish lang ang position kapag mag transfer sila ng ibang opisina sa ibang position, mapromote, mag retire or mag separate. Ibig sabihin there is security of tenure sa mga mag transfer within the agency or to other department agencies or GOCC in the executive branch of the government.

Another one, yung isang option ng ating affected personnel is kung qualified sila mag retire pwede sila mag retire. I think there is a separation incentive. But for those who are not qualified to retire but still opt to separate from the service, I think they will have separation incentives. They have to choose wisely. Hindi pwedeng papalit palit. Kapag approved na ang DTP yun na yung magiging finale sa option that you choose. Yung pagkatapos magchoose ng retirement or separation but they applied for re-employment pwede. Kaya lang they be required to refund proportionately. Depende yan kung ilan buwan o taon ang natira pa sa five-year prohibition. They will be required to refund. Pero may exemption, pag nag transfer sa teaching. Saka kapag nag transfer sa LGU.

I think itong ginagawa natin para sa mga manggagawa. Walang iwanan dito kasi talagang safe yung kanilang position when it comes to the implementation of EO 138. And for those who were employed, yung mga non-permanent they can be employed, yun lang wala silang benefits under EO 138. Yun lang they can be re-employed in nay government agencies. Provided they complied with the qualification standards and the merit systems ng ahensya na nag-offer ng position na yan. So, they have to comply with the requirements.

Concerns addressed during the open forum.

May 257 job order po sa amin, but 80+ lang ang gagawing plantilla in compliance with the Mandanas Ruling. Tuloy pa rin po yung paghire nila ng JO. I fear po pagdating po ng pondo ng Mandanas, hindi pa rin po mapaprioritize yung proper human capital management ng workforce sa LGU namin. Yung tanong ko po, paano po natin ma-ensure na mawala na po yung unfair labor practice ng paghire ng mostly job orders? Anong safeguards and quality monitoring procedures yung irorollout ng national government? I think yung paghire po ng JOs fosters patronage politics, denegrades the quality of service sa lgus, abusive din po sa mga workers hired kasi tumatanda po sila na ganun na lamang. Walang benefits or protection. Wala rin po pala yung christmas bonus nila.

Director Anna Liza F. Bonagua: Actually, hindi naman po covered ng EO 138 yung policy ng jo. Kung ano po yung policy nila ay ayun pa rin po at wala naman pong nagalaw sa policy natin sa pag-hire ng job order.

May separate policy po ang national government tungkol dito. Ang sinasabi po lang natin, dahil sa increase ng resources ng local goverment. Lalaki din ang kanilang ps caps, so ibig sabihin mas madadagdagan ang kanilang resources para makapaghire pa ng mas maraming tao na kinakailangan sa local government units. Yung tungkol sa policy sa job order wala pong magbabago roon dahil lang sa EO 138 o devolution dahil patuloy lang ang policy na yan hanggang ito ay alisin o tanggalin ng national government.

Ang pag-hire po ng job order kahit dito po sa national government, particularly po halimbawa sa aming bureau. Kami po ay meron lang 32 plantilla pero meron po kaming around 40 plus job order personnel dahil po ito ay kinakailangan sa implementasyon ng mga programs. Pero ang aming pong limitasyon at posisyon na nandito sa amin ay limitado lamang. So, we also employ job order sa aming bureau. So yun po wala pong pagbabago sa ating policy sa mga job order.

Ms. Rowena Marte: Tama po yung sinabi ni Dir. Bonagua, ako po ay sumasang-ayon don. Wala pong nabago sa polisiya regarding sa paghahire ng mga JO. Hindi po ito sakop ng EO 138. Ganun rin po ang LGU ay binigyan ng kapangyarihan ng local goverment code upang magdefine po ng kanilang organizational structure and staffing pattern. Meron po silang kapangyarihang maghire o magdetermine ng mga position na kailangan nilang i-create sa local government units. Gayun din po sila rin po ang nakakaalam kung ano ang kanilang pangangailangan para sa personnel resources ng lgu. Ang national government po sa DBM naman ay kinikilala po natin yung kapangyarihan o karapatan na binigay sa lgu ng local government code. Yun nga po, isang observation po natin is that, since nag lgu ay bound by the PS limitation. Isang nagiging paraan po nila para makahire ng tao na mag iimplement ng kanilang proyekto ay maghire nga ng JO. Since nag JO naman ay pumapasok sa MOOE ng lgu. Isa po yun na dahilan ng lgu. Ulitin ko lang po na ang dahilan ay hindi po natin masasagot. Yun lang po ang masasabi ko regarding sa hiring ng JO.

Assistant Commissioner Rodolfo Encajonado: I want to make it clear the commission has been declaring. In fact, nandiyan yan sa omnibus ng appointment natin. Job orders and contracts of services are not covered by civil service law and rules. And even if they will be hired by the lgus and national government agencies, they are not considered as government personnel. Kasi na-emphasize nga kanina ng DBM ang kanilang sahod ay kinukuha sa MOOE. As far as the commission is concerned, we will no longer comment on that because it is within the province of DBM and COA.

Director Geral Janda: I agree with the position of DILG ni Dir. Bonagua on that matter. Considering that the lgus po ay currently authorize under the local government code to engage emergency personnel. Ito po yung tinatawag natin na job order. Dito po sa ating devolution efforts isa po ito sa magandang oportunidad sa ating mga local government units para kanilang i-determine kung ano po ba yung nararapat na istraktura or mix ng manpower complement ng isang local government unit na pwedeng icompose ng regular position, contractual items kung ito po ay time bounded na proyekto o program. At yung jo as necessary or through emergency mode. Sa national government po meron po tayong COA-DBM Joint Circular #2 s. of 2020 na inaallow po lahat ng ahensya at departamento ng national government na magcontinue na mag-engage ng COS at mag renew ng existing contracts ng COS at JO until December 31, 2022. After which po, the different departments and agencies will engage COS and job order workers based on the conditions indicated in the COA-DBM Joint Circular. But the local government units are being enjoined and encouraged to adopt or implement po yung COA-DBM Joint Circular No. 2.

Concerns addressed during the open forum.

Kung bumilang po ng maraming taon na nirerenew ang kontrata ng JO at COS, hindi po ba na ang gawain nila ay matatawag na desirable at necessary? Ang status po ng employment ay hindi batayan kung may employee-employer relationship, sa halip ito ay nakabatay sa gawain ng JOs at COS. Maraming JOs at COS ang gawain ay core functions at ginagawa ng mga kawani.

Director Gerald Janda: COA-DBM Joint Circular No. 2 indicates that government agencies concerned could revisit their respective organizational structure and staffing pattern for them to determine the appropriate structure and implementation ng regular functions. And as necessary po they could create contractual positions para po sa implementation ng time-bounded programs and projects. Ito po ay ginagawa na ng iba't ibang ahensya at sa national government level po ay nakapag-approve na po tayo ng mga regular position and contractual items sa mga ahensya para po i-absorb yung mga mga qualified COS and JO. So tama po si sir na kung regular na yung pineperform ng COS at job orders dapat idetermine na ng ahensya kung magkakaroon ba ng regular item. So patuloy po yung pagsasubmit ng request at pag-aaral ng iba't ibang ahensya dito.

Assistant Commissioner Rodolfo Encajonado: Kasi yung sinabi kanina na they are performing core functions. Actually if we look at EO 292 as well as yung prohibitions. JOs are prohibited from performing regular functions of our regular positions. So tandaan niyo lang na hindi dapat ay yan lang ay siguro binibigyan ng pagkakataon ng DBM at COA ang mga agencies to wrap up. Kasi by 2022, it will strictly be implemented na ang pag-hire. So, if we look at the provisions of EO 292, maraming, prohibition ang performance of regular functions for a regular position. Sometimes, there are those they supervise people na hindi naman dapat. So yun lang siguro. We are hoping that we are able indeed to help this people. Tingnan lang ng lgu ang kanilang OSSP. Kasi itong mga hinahire na JO at COS ay walang eligibility. Meron din naman may eligibility. Siguro pag-igihan na lang nila ang kanilang pag study at malaking pera ang mapupunta sa kanila and here's hoping that these people will be given the opportunity to be hire under regular status.

Concerns addressed during the open forum.

Usec. Kim, you mentioned that there will be no mandatory and force separation/retirement for NGA personnel but if the functions are declaring redundant, that leaves no option for employees of NGAs but be separated from service?

Department of the Interior and Local Government (DILG)

As highlighted in the presentation delivered by Usec. De Leon during the webinar, in view of the possible effects of the full devolution effort directed under Executive Order No. 138[1] dated 01 June 2021 to the organization and manpower complement of national government agencies (NGAs) concerned, Section 12 of said EO further provides the following three (3) options which may be availed of by permanent NGA personnel who may be affected by the full devolution effort such as when functions are declared redundant in view thereof: 

1. Apply for transfer to other units/offices within the department/agency/GOCC concerned without reduction in pay;
2. Apply for transfer to other departments/agencies/GOCCs in the Executive Branch without reduction in pay; or
3. Avail the retirement benefits and separation incentives provided under Section 13 of the EO and, subject to the discretion of the local government units (LGUs), apply to vacant positions therein, provided that their reemployment shall be considered as new entry to the civil service and that they shall be subject to the compensation system of the LGU concerned. 

In view of the aforesaid personnel options stipulated under EO No. 138, the Department of Budget and Management (DBM) and the Department of the Interior and Local Government (DILG), in coordination with the Civil Service Commission, issued Joint Memorandum Circular (JMC) No. 2021-3[2] dated 13 September 2021 providing for the specific guidelines on said personnel policies and options to ensure the fair, orderly, and transparent implementation of the same.

Under said DBM-DILG JMC, the following general policies were emphasized per Section 2.0 thereof with regard to the implementation of personnel options, among others:  

There shall be no forced/involuntary separation, termination, or lay-off of permanent national government personnel affected by the full devolution effort. 

In this regard, the affected personnel may avail of any of the cited options provided under the EO. 

Personnel shall enjoy security of tenure in the agencies where they have been transferred to as a result of the implementation of full devolution under EO No. 138, in accordance with the Civil Service laws, rules and regulations. 

It may be noted that this applies to affected personnel who will either opt to be transferred to other units/offices within his/her current department/agency/GOCC, or to be transferred to other departments/agencies/GOCCs in the Executive Branch. 

The positions of personnel who may be affected by the full devolution effort and will not opt to retire or separate from the service shall be marked coterminous with the incumbent (CTI), either in the parent or the recipient agency, to be abolished once vacated. 

Hence, the position occupied by affected personnel shall be retained as long as the employee remains in the department/agency, and shall only be abolished once the affected personnel vacate the position. 

It should also be emphasized that it shall be the responsibility of the Department/Agency Head to ensure that personnel occupying positions which are marked CTI are assigned to relevant offices/units where their services are required and maximized.

Additionally, to further ensure that no affected personnel will be forced to retire or separate from the service, Section 4.2.7 of DBM-DILG JMC No. 2021-3 likewise provides that in case the proposed transfer of an affected personnel to another department/agency is not accepted by any of the specified recipient departments/agencies, affected personnel may remain in his/her parent agency, with his/her position to be marked as CTI.  

Concerns answered through a letter/email response.