A temporary relief for state universities & colleges

Last Wednesday, the sub-committee hearing the budget of state universities and colleges (SUC’s) unanimously committed to restore the budget to its 2009 level. It means to say that the proposed P3 billion budget cut by the President and the Department of Budget & Management is rejected at the sub-committee level, and the budget for the country’s 110 SUC’s would be back to around P24 billion.

Kabataan Rep. Mong Palatino remarked that this is imperative, as the proposed budget has barely any allocation for SUC’s capital outlay. How then can SUC’s affected by the recent calamities rebuild their schools?

A few days earlier, the DBM released a statement defending the budget cut in response to several protests launched by the National Union of Students of the Philippines (NUSP). They claimed that the proposed P21 billion budget is sufficient to sustain the services of SUC’s, as they are anyway allowed to generate their own income. What they didn’t say is that this forced income generating policy is done at the expense of students, through tuition and other fee increases. The statement only proves that our analysis as correct, that budget cuts and tuition increases are state policies that harm the future of the youth and the nation.

The motion to restore the P24 billion budget drew cheers from the attending university officials and employees. One state university president, however, remarked that though he was elated by the motion of the congressmen, he feared that it may be another disappointment. Apparently, congressmen, the politicians that they are, have for the past years committed to similar promises of budget increases, only to disappoint SUC’s once the General Appropriations Act is passed. Hopefully, the attending congressmen stay true to their word and maintain the P24 billion commitment–insufficient as it is, is better than the P21 billion budget proposed by the Executive.

It must be stressed, however, that this relief is temporary, as though the sub-committee approved the increase, the same must also be approved by the Committee on Appropriations and the House of Representatives in plenary session. It also has to get the approval of the Senate. Needless to say, it is too soon to be glad about the development.

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Tulong Kabataan’s relief effort for the victims of tropical storm Ondoy is still ongoing! You may drop off your donations at any of the donation centers in schools across the Metro. You may also donate via Paypal. Or you may go to our headquarters at 118-B Scout Rallos St., Quezon City for volunteer work. The HQ is near GMA Network’s main offices along Timog Avenue.

With your help, Tulong Kabataan was able to hold soup kitchens in some communities a few days ago. Yesterday, we joined Makabayan’s clean-up effort at Tumana, Marikina. Hand in hand, volunteers helped the residents fill up two garbage trucks of debris. Today, there will be a medical mission in Malate. This weekend, if the weather permits, we will push through with the centralization of all relief goods collected from the donation centers and do repacking and distribution to several affected communities.

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We make the university, they make the crisis

Today the House of Representatives will start hearing the 2010 budgets of country’s state universities and colleges (SUC’s). We are of course, for the increase of the budgets of public institutions of higher learning.

Unfortunately however, many of the appointed administrators of state universities are resigned, even subservient, to the government’s policy of reducing government support to SUC’s. This year, the total allocation for the country’s 110 state universities and its almost 1 million students was slashed by P3 billion pesos. This situation, for the past years, has lead to the rampant increases in tuition and other miscellaneous fees in SUC’s, fervently implemented by its administrators. These have, in turn, made tertiary education in the Philippines increasingly inaccessible to the vast majority of Filipino youth.

This phenomenon of state abandonment of public higher educational institutions is not confined to the Philippines. It is a challenge being faced by many state universities and colleges around the world as an effect of a global free market philosophy that forces governments to cut on social services such as higher education in order to “balance the budget” and finance debt servicing.

A few days ago, thousands of students from state-funded University of California (UC) and other state universities and colleges in California walked out of their classes and protested against the budget cuts and the consequent tuition increases that were to be implemented by the state government. In defense of the cuts, the state government hammers the justification that everyone has to tighten their belts in light of fiscal crises and growing budget deficits. It is a rhetoric that is echoed even by the Philippine government. These belt-tightening justifications are nevertheless rejected as crises of their own making and as hypocrisies because governments continue to provide huge sums on questionable allocations and continue providing huge tax incentives to large corporations. In the Philippines for example, the government annually allocates tens of billions of pesos in Presidential discretionary funds that are immune from auditing scrutiny.

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UC students walk-out against commercialization of California State U’s

Even state university students and faculty in California are walking out in protest to the present state government’s policy of privatizing state public higher education institutions, from UC Berkeley to California State University. Budget cuts, tuition hikes, limited admissions, corporate tie-ups, these are phrases that sound all too familiar to students from state universities in the Philippines. It is a reinforcement of the assertion that commercialization of public higher education is a product of a global free-market philosophy.

The budget cuts in California and in the Philippines take on very similar forms, as do their consequences. State policies (Higher Education Compact in California, Medium Term Higher Education Development Plan in the Philippines) declare that state universities should generate their own income from privatization and tuition hikes. Consequently, state funding is reduced as school administrators raise tuition and limit certain student services. It’s even worse in the University of California where salaries are also being slashed and enrollment/admissions are being limited.

In California as it is in the Philippines, despite gradual state abandonment of public higher education institutions, enrollment in state universities is increasing, students continue to flock to public institutions and their share in the total enrollment of all college students is growing larger by the year. The situation is more serious in California where public institutions enroll 79% of all college and university students. The share in the Philippines is 35% in 2008 (from only 10% in 1980). These figures should actually reinforce the policy of strengthening support to public higher education institutions instead of cutting subsidies.

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Budget cut in SUC’s means added burden to students

As the national government continues to cut down spending on the country’s 110 state universities and colleges (SUCs), students carry the burden of the steep cost of higher education, Kabataan Party-list Representative Raymond “Mong” Palatino said.

In the proposed national budget for 2010, allocation for SUCs will be slashed by 13 percent or a whopping P3.2 billion, thus forcing SUCs to generate income mostly from students.

Based on the 2010 National Expenditure Program, bulk of SUCs’ projected income of P10.2 billion will be sourced from tuition fees (P4.59 Billion) and other income from students (2.23 billion).

Palatino said “SUCs are being forced to rely less on government subsidy and more on internally-generated income in the form of tuition and other fees and privatization of assets. Unfortunately, the burden of financing tertiary education is placed on Filipino students, many of whom will be unable to afford it,” Palatino said.

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Budgets, budgets

The past week had been spent largely reading through the 2010 budget proposals of the government and its various departments and agencies. It can get frustrating and confusing, for someone who’s not used to reading accounting sheets and pages full of numbers. After a few days of flipping through the pages and scrutinizing the items, one will eventually get used to it. It is imperative, too, to look at the budget figures over the past years and at government policy declarations, to track the trend of government priorities as reflected in the money it is willing to spend on certain services and projects.

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State abandonment of higher education

This table shows the share of state subsidy and internally-generated income in state universities and colleges’ (SUC) total operating budget through the years. What is evident is that SUC’s are being forced to rely less and less on government subsidy and more and more on internally-generated income (in the form of tuition and other student fees, privatization of assets, etc.).

One sector which has always suffered from the government’s policy of contracting spending for social services in favor of continued debt servicing is the sector of higher education. When I was still in UP, I had friends who abhorred militant activists and the “leftist” slogans. One of the state policies they continuously deny is existing is “state abandonment of education.”

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Contracting social services, taxing the people dry

It has always been a priority for the Arroyo administration to “balance the budget”—meaning, to decrease the gap between government revenues and government spending.

In plain reading, this is good. Trimming the budget deficit should mean less borrowing, and eventually more money for health, education and other social services. However, the goal of balancing the budget under the Arroyo administration, and even before, has always been to ensure the payment of our debt obligations, unfortunately at the expense of social services spending.

To make matters for ordinary citizens worse, in order to balance the budget and earn more revenues, the government, for years, has always put a stress on consumer taxes (E-VAT, sin taxes, proposed text tax) instead of directly taxing corporations and high-income tycoons, instead of taxing imports or plugging the leaks from corruption. In the age of trade liberalization and globalization, government would rather give rich foreign investors, high-income tycoons and importers tariff cuts, tax holidays and other tax incentives.

Aside from taxing the consumer, government has also been selling its assets and privatizing services and public utilities in an effort to hide its poor and lopsided tax effort. This results to private companies concerned largely with profit and not with public service controlling public utilities. Thus, the high power and water rates we experience.

When corruption and smuggling comes into the picture, we arrive at the terrible fiscal decay we find ourselves in. Ordinary people are being taxed dry, and yet social services are continuously deteriorating, and despite all these, our debt just keeps growing and growing.

Below are some graphs that would illustrate the trend of the government in its budget proposals for the past years.

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