Records show that SUCs have enjoyed steady budget increases over the past decades. From their total budget allocation of P2.9 billion in 1987, it jumped by 310 percent in 1997. In 2007, its allocation rose to P19.34 billion, 62 percent higher than its budget share ten years ago. While the allocation for SUCs will have a slight decrease next year over the 2009 budget, it will not have a major impact on the performance of the 112 SUCs as the allocation is enough to cover their operational requirements. Aside from the P21 billion subsidy the government is providing for SUCs in 2010, they also have some P10.2 billion retained income which they can use to augment their finances, if needed.
Andaya explained that certain laws allow SUCs to receive donations and contributions and to retain their income generated from tuition fees and other charges, as well as income from intellectual property created by their faculty and personnel. They are also given flexibility in the use of their budget. Unlike most government instrumentalities, SUCs are not required to return savings to the Bureau of the Treasury.
SUCs likewise get additional funds, through provision of scholarships to deserving students, from the Priority Development Assistance Fund (PDAF) or Congressional Initiatives.
The government also provides other scholarship programs for qualified high school students who wish to pursue higher education. One of which is the One Town One Scholar (OTOS) Program launched early this year to provide a public high school graduate in each of the 1,500 municipalities with free full tuition as well as a semestral stipend.
When asked why the capital outlay for SUCs decreased by as much as 99 percent, Andaya explained that the substantial drop in the allocation for CO was due to the policy to provide only for completion of on-going infrastructure projects.
“This policy to provide CO funds only for completing projects is adopted not only for SUCs but for other departments and agencies of government,” the Budget Chief said.
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