Thursday, August 21, 2008 Special fund not for tertiary schools By Lydia C. Pendon
THE City Treasurer's Office stressed that the Special Education Fund (SEF) of the City Government is intended for the interest of 51 elementary, 11 city high schools, and a vocational technical institute as provided in the local government code and not to fund a tertiary level school.
City treasurer Katherine Tingzon said she is fully supporting a proposal to establish a city college here but not at this time when the city's fiscal position is not enough due to a slash on the internal revenue allotment (IRA) share and salary increases of city employees starting this year.
"We are not closing the door for a city college but as of 2008-2009 budget, the city cannot afford it especially if the funds are to be taken from the SEF," Tingzon said.
Earlier, City Councilor Jeffrey Ganzon was asking P6 million from the 2009 SEF to initially fund the establishment of the College of Iloilo City.
The Iloilo City School Board asked for a feasibility study to justify the proposal but Ganzon is yet to submit the study.
Tingzon said the City Council may have to enact an appropriation ordinance and if possible, the amount must be taken from the general fund subject to availability of funds and not from the SEF.
The city treasurer also vehemently denied the disappearance of more than P50 million from the SEF intended to finance city education projects.
Tingzon clarified that there is no missing amount and the reported missing funds in the 2007 SEF budget are actually absorbed in the ongoing 2008 SEF budget and deposited in three bank accounts to fund continuing projects and accounts payable in 2008.
She said the SEF has a cash balance of P58,935,169 as of December 31, 2007.
This comes from the actual 2007 collection of P109.7 million less expenses of P78.47 million.
The office thereby posted a net income of P31.25 million.
The net income was deducted of P19.28 million for continuing projects and accounts payable.
However, the amount, which also covers the surplus income of P11.97 million in 2007, was used as a source of fund for a supplemental budget.
The SEF cash balance in 2007 covers a current account in the Development Bank of the Philippines (DBP) amounting P11.43 million.
It also has a savings account in the Philippine Postal and Savings Bank (PPSB) of P2.49 million and time deposit at the PPSB of P45 million.
Tingzon said the 2007 cash balance and the actual collection as of June 2008 amounting P77.4 million are being used to fund ongoing SEF projects this year.
She said the appropriation is only for the SEF listed projects.
