POLICY ON

NORMATIVE FUNDING
SCHEME FOR SUCs
JOINT CIRCULAR NO. 2 S. 2004
NORMATIVE FUNDING
REFERS TO THE APPLICATION OF A SET
OF PRESCRIBED OBJECTIVE CRITERIA
AND NORMS THAT ARE DESIRED TO
PROMOTE AND REWARD QUALITY
INSTRUCTION, RESEARCH AND
EXTENSION SERVICES AS WELL AS
FINANCIAL PRUDENCE AND
RESPONSIBILITY

NORMATIVE FUNDING DEFINED

1. TO FURTHER RATIONALIZE THE ALLOCATION
OF FUNDS TO SUCs
2. TO IMPROVE DELIVERY OF SERVICE IN THE
FIELD OF INSTRUCTION, RESEARCH AND
EXTENSION
3. TO HARMONIZE THE PROGRAMS AND
COURSE OFFERINGS OF SUCs TO THE NATIONAL
THRUSTS AND PRIORITIES
4.TO REWARD OR ENCOURAGE QUALITY
TEACHING, RESEARCH AND EXTENSION
5.TO ENCOURAGE SUCs TO IMPROVE COST
RECOVERY MEASURES, PRACTICAL FISCAL
PRUDENCE AND MAXIMIZE RESOURCES

PURPOSE OF NORMATIVE FUNDING

GENERAL GUIDELINES
PROCEDURAL GUIDELINES
PROCEDURAL GUIDELINES
 Yes.
Aquino said it himself in his budget message
to congress last August 24, 2010:

“We allocated P23.4 billion to 112 State

Universities and Colleges (SUCs) in 2011. This
is 1.7 percent lower than the P23.8 billion
budget for 2010. We are gradually reducing the
subsidy to SUCs to push them toward
becoming self-sufficient and financially
independent..”
Is there a budget cut for SUCs in
the 2011 Aquino budget?
 No.
First of all, the congressional initiatives were
passed precisely to compensate for the lack of
funds of the SUCs.
Second, it is not true that it is only these CIs
which have been cut
Budget for Maintanance and Other Operating
Expenses (MOOE) of 97 out of 112 SUCs will
be cut by a total of P1.1 billion or 28%, with
some universities suffering cuts of more than
50% of their MOOE budget.
The government is claiming that there are no cuts since
they are only cutting “congressional initiatives”(CIs)
and that in fact, they are increasing the budget
compared to 2010. Is this true?
 MOOE stands for “Maintenance and Other
Operating Expenses”. It is one of the three
components of the budget of any government
agency (the others being “Personal Services” and
“Capital Outlay”). MOOE represents the funds
allocated for the operations of the various
services of government agencies, from payments
of utilities such as water and electricity, to
payment of contractual janitorial services, repair
and maintenance of facilities, purchase of office
and laboratory supplies, among many other
expenses necessary for an institution to be able
to do what it is mandated to do.

MAITENANCE AND OTHER OPERATING EXPENSES

 2010 2011
Change
between
2010 and
2011

3,903,881 2,804,392 -28.16%

NATIONAL CAPITAL REGION 1,670,396 917,359 -45.08%
Euogio ‘Amang’ Rodriguez Institute of Science &
Technology 23,073 24,227 5.00%
Marikina Polytechnic College 6,693 5,978 -10.68%
Philippine Normal University 53,656 51,245 -4.49%
Philippine State College of Aeronautics 10,383 9,646 -7.10%
Polytecnic University of the Philippines 114,114 90,684 -20.53%
Rizal Technological University 21,047 18,942 -10.00%
Technological University of the Philippines 83,098 62,638 -24.62%
University of the Philippines System 1,358,332 653,999 -51.85%

List of State Colleges and Universities with Cuts in

MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
REGION I – ILOCOS 164,880 150,528 -8.70%

Don Mariano Marcos Memorial State University 39,550 35,775 -9.54%

Ilocos Sur Polytechnic State College 8,907 8,514 -4.41%
Mariano Marcos State University 48,094 43,285 -10.00%
Pangasinan State University 37,123 33,411 -10.00%
University of Northern Philippines 31,206 29,543 -5.33%

CORDILLERA ADMINISTRATIVE REGION 114,576 79,765 -30.38%

Abra State Institute of Sicence & Technology 12,621 7,759 -38.52%
Apayao State College 5,170 3,753 -27.41%
Benguet State University 41,085 32,477 -20.95%
Ifugao State University 23,730 13,257 -44.13%
Kalinga-Apayao State College 13,989 7,236 -48.27%
Mountain Province State Polytechnic College 17,981 15,283 -15.00%
List of State Colleges and Universities with Cuts in
MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
 REGION II – CAGAYAN VALLEY 183,039 120,565 -34.13%
Batanes State College 2,865 1,958 -31.66%
Cagayan State University 50,668 49,508 -2.29%
Isabela State University 82,623 45,804 -44.56%
Nueva Vizcaya State University 41,235 19,112 -53.65%
Quirino State College 5,648 4,183 -25.94%

REGION III – CENTRAL LUZON 247,551 236,782 -4.35%

Aurora State College of Technology 9,358 4,507 -51.84%
Bataan Peninsula State University 27,224 22,445 -17.55%
Bataan State College
Bulacan Agricultural State College 5,148 3,857 -25.08%
Bulacan State University 42,509 44,109 3.76%
Central Luzon State University 36,053 37,630 4.37%
Don Honorio Ventura Technological State University 11,158 11,191 0.30%
Nueva Ecija University of Science & Technology 24,994 26,244 5.00%
Pampanga Agricultural College 9,456 8,367 -11.52%
Philippine Merchant Marine Academy 37,669 36,250 -3.77%
Ramon Magsaysay Technological University 14,656 13,190 -10.00%
Tarlac College of Agriculture 8,499 7,649 -10.00%
List ofState
Tarlac State Colleges and Universities
University 20,827 with
21,343Cuts in 2.48%
MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
REGION IV-A – CALABARZON 182,179 166,270 -8.73%
Batangas State University 54,684 49,216 -10.00%
Cavite State University 30,872 31,891 3.30%
Laguna State Polytechnic University 24,338 22,357 -8.14%
Southern Luzon State University 37,686 31,667 -15.97%
University of Rizal System 34,599 31,139 -10.00%

REGION IV-B – MIMAROPA 97,346 70,768 -27.30%

Marinduque State College 10,604 8,861 -16.44%
Mindoro State College of Agriculture &
Technology 6,853 5,380 -21.49%
Occidental Mindoro State College 10,058 9,052 -10.00%
Palawan State University 45,672 28,699 -37.16%
Romblon State University 8,937 8,043 -10.00%
Western Philippines University 15,222 10,733 -29.49%
List of State Colleges and Universities with Cuts in
MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
REGION V – BICOL 218,241 163,855 -24.92%
Bicol University 86,165 69,313 -19.56%
Camarines Norte State College 10,092 9,545 -5.42%
Camarines Sur Polytechnic Colleges 23,127 24,283 5.00%
Central Bicol State University of Agriculture 39,294 16,518 -57.96%
Catanduanes State Colleges 18,917 17,025 -10.00%
Dr. Emilio B. Espinosa, Sr. Memorial State College of Agriculture
& Technology 6,487 4,938 -23.88%
Partido State University 19,218 8,296 -56.83%
Sorsogon State College 14,941 13,937 -6.72%

REGION VI – WESTERN VISAYAS 195,762 179,837 -8.13%

Aklan State University 16,149 14,534 -10.00%
Capiz State University 24,528 22,075 -10.00%
Carlos C. Hilado Memorial State College 12,443 13,023 4.66%
Guimaras State College 3,515 2,264 -35.59%
Iloilo State College of Fisheries 9,014 9,465 5.00%
Negros State College of Agriculture 10,106 7,745 -23.36%
Northern Iloilo Polytechnic State College 17,462 15,716 -10.00%

Northern Negros State College of Science & Technology 4,630 3,812 -17.67%
University of Antique 18,623 10,731 -42.38%

Western Visayas State College of Science & Technology 23,738 24,925 5.00%
List of State Colleges and Universities with Cuts in
West Visayas State University 55,554 55,547 -0.01%
MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
REGION VII – CENTRAL VISAYAS 138,470 128,332 -7.32%
Cebu Normal University 37,909 36,310 -4.22%
Cebu Technological University 31,080 32,634 5.00%
Bohol Island State University 23,668 21,301 -10.00%
Negros Oriental State University 41,300 34,470 -16.54%
Siquijor State College 4,513 3,617 -19.85%

REGION VIII – EASTERN VISAYAS 191,266 148,801 -22.20%

Eastern Samar State University 12,258 11,032 -10.00%
Eastern Visayas State University 27,947 22,002 -21.27%
Leyte Normal University 19,678 17,738 -9.86%

Visayas State University (Leyte State University) 32,586 30,540 -6.28%

Naval State University 11,388 9,349 -17.90%
Palompon Institute of Technology 12,250 8,663 -29.28%

Samar State College of Agriculture & Forestry 2,822 -100.00%

Southern Leyte State University 32,112 11,550 -64.03%
Samar State University 11,075 10,442 -5.72%

Northwest Samar State University (TTMIST) 11,747 11,312 -3.70%

List of State
University of EasternColleges
Philippines and Universities
17,403 with
16,173 Cuts in -7.07%
MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
REGION IX – WESTERN MINDANAO 71,205 68,171 -4.26%
Cerilles State College 9,320 8,574 -8.00%
Jose Rizal Memorial State University 13,125 11,813 -10.00%
Western Mindanao State University 33,269 35,095 5.49%
Zamboanga City State Polytechnic College 4,854 3,469 -28.53%
Zamboanga State College of Marine Sciences &
Technology 10,637 9,220 -13.32%

REGION X – NORTHERN MINDANAO 152,259 139,079 -8.66%

Bukidnon State College 15,227 14,249 -6.42%
Camiguin Polytechnic State College 5,334 4,208 -21.11%
Central Mindanao University 35,368 37,136 5.00%

Mindanao University of Science & Technology 24,470 20,444 -16.45%

MSU-Iligan Institute of Technology 62,966 56,669 -10.00%
Misamis Oriental State College of Agriculture &
Technology 5,512 4,061 -26.32%
Northwestern Mindanao State College of
List of State
Science Colleges and Universities
& Technology 3,382 with
2,312 Cuts in
-31.64%
MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
REGION XI – DAVAO REGION 67,345 46,321 -31.22%
Davao del Norte State College 5,443 3,999 -26.53%
Davao Oriental State College of Science &
Technology 6,987 5,388 -22.89%
Southern Philippines Agri-Business & Marine
and Aquatic School of Technology 9,255 3,122 -66.27%
University of Southeastern Philippines 45,660 33,812 -25.95%

REGION XII – CENTRAL MINDANAO 60,724 55,253 -9.01%

Cotabato City State Polytechnic College 8,734 6,961 -20.30%
Cotabato Foundation College of Science &
Technology 11,453 9,408 -17.86%
Sultan Kudarat State University 8,640 7,594 -12.11%
University of Southern Mindanao 31,897 31,290 -1.90%

List of State Colleges and Universities with Cuts in

MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
CARAGA ADMINISTRATIVE REGION 35,420 32,555 -8.09%
Agusan del Sur State College of Agriculture &
Technology 4,739 3,365 -28.99%
Caraga State University 12,985 11,659 -10.21%
Surigao del Sur State University 9,941 10,438 5.00%
Surigao State College of Technology 7,755 7,093 -8.54%

AUTONOMOUS REGION IN MUSLIM

MINDANAO 113,222 100,151 -11.54%
Adiong Memorial Polytechnic State College 4,331 2,998 -30.78%
Basilan State College 6,830 5,247 -23.18%
Mindanao State University 77,340 75,957 -1.79%
MSU-Tawi-Tawi College of Technology &
Oceanography 15,266 9,239 -39.48%
Sulu State College 3,930 2,637 -32.90%
Tawi-Tawi Regional Agricultural College 5,525 4,073 -26.28%

List of State Colleges and Universities with Cuts in

MOOE
27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
 •Southern Philippines Agri-Business & Marine
and Aquatic School (-66.27%)
•Southern Leyte State University (-64.03%)
•Central Bicol State University of Agriculture
(-57.96%)
•Partido State University (-56.83%)
•Nueva Vizcaya State University (-53.65%)
•University of the Philippines (-51.85%)
•Aurora State College of Technology (-51.84%)

Schools with more than 50% cut in their MOOE*:

27 November 2010
*Figures in thousands
Source: Proposed MOOE budget for state schools, GAA 2011, Dept of Budget
and ManagementCompiled by Kabataan Partylist
 DBM Secretary Abad and Malacanang Palace
Spokesman Edwin Lacierda have been quoted
as saying schools should increase tuition
instead of asking for more state
subsidy.

Government plan to abandon SUCs will push

more students to go out of school and more
families into poverty.

Where does the government want the SUCs to get

funds for their needs? What will be the effect of
the reduction of state subsidy to SUCs?
 No.
These “savings” are not savings but
income generated which are already
appropriated and are already being used
by the SUCs to cover expenses.

Isn’t it true that the SUCs have billions worth

savings? Government saying SUCs have
enough funds.
 No.

The government should not pit the

welfare of students in basic
education and tertiary education.

Aquino says he is prioritizing basic and

secondary education. Is this a valid
justification for the SUC cuts?
 No.
While the government is scrimping
on funds for education and social
services, it increased debt
servicing, military spending and
corruption funds.

Government claims that it is short of funds

and calls for austerity. Is it true that there are
no funds that can be allotted to SUCs?
 IBON Research Head Sonny Africa
replies to interview questions
emailed by Philippine Collegian
News Editor Marjohara Tucay and
Philippine Graphic News Staffer
John Morales regarding the state of
State Colleges and Universities for
the past two decades

Response to Kule Inquiry re Normative Financing and

the Gradual Decrease of Government Funding in State
Universities
 In 2005, CHEd and DBM has implemented the
“normative financing scheme” in computing for
the maintenance and other operating expenses
(MOOE) component that will be provided for each
SUC. Under the said scheme, allocation will be
based on “performance”–passing rates, number of publications
and researches, number of centers of excellence in the university
etc. UP was not included in this scheme as the said university
already enjoys a “lion’s share” in the budget allocation. Since its
implementation, yearly, several schools get budget cuts for their
MOOE due to their low cumulative rating in the normative
financing scheme. Thus, SUCs with low budget and poor
performance gets less from the pie. What can you say about this
allocation scheme? How will this affect the future performance of
the said schools?
Response to Kule Inquiry re Normative Financing and
the Gradual Decrease of Government Funding in State
Universities
 The Arroyo administration planned to implement the
normative financing scheme in its Medium-Term
Philippine Development Plan 2004-2010. While
ostensibly a way to more ‘rationally’ allocate
finite government resources among SUCs, based
on their supposed ‘’performance’, they have instead given the
national government an excuse to cut SUC budgets. It is true
that SUCs must continuously improve the quality of their instruction
and research but the way to do this is to increase the resources
they have and to design constructive ways of using these more
effectively, not by using a socially insensitive, irresponsible
and destructive free market-inspired scheme of incentives and
penalties. The normative financing scheme and the budget cuts they
result in will also likely increase the pressure to raise revenues though
various income-generating schemes in SUCs, making higher
education even more inaccessible.
Response to Kule Inquiry re Normative Financing and
the Gradual Decrease of Government Funding in State
Universities
 ARE YOU FOR THE
NORMATIVE FUNDING
SCHEME?

POINT OF DISCUSSION
THANK YOU FOR LISTENING.
God Bless.