Press Release - P3.058 billion budget increase to prevent funding shortfall in Free Higher Education -Gatchalian

To prevent a funding deficiency in the implementation of free higher education, the Senate accepted Senator Win Gatchalian's proposal to allocate P3.058 billion for 82 State Universities and Colleges (SUCs) next year.

Gatchalian's proposal was carried in the Senate's final and approved version of the General Appropriations Act (House Bill No. 10800) for fiscal year 2025. The senator emphasized that preventing a budget shortfall will help SUCs expand their enrollment capacity and accommodate the rising demand for admission.

The P3.058 billion increased free funding higher education funding for Fiscal Year (FY) 2025 by 13% compared to the National Education Expenditure (NEP) level. The lawmaker also pointed out that a funding deficiency will lead to the deterioration of education quality. This is because SUCs will be forced to stretch limited resources across a growing student population, which could lead to overcrowded classrooms, increased faculty workload, and overuse of facilities such as laboratories and libraries.

"Sa paglalaan natin ng sapat na pondo para sa Free Higher Education, hindi lamang ang patuloy na pag-aaral ng mga kabataan ang matitiyak natin. Masisiguro rin nating may kakayahan ang ating mga SUCs na maghatid ng dekalidad na edukasyon," said Gatchalian, co-author and co-sponsor of the Universal Access to Quality Tertiary Education Act (Republic Act No. 10931) or the Free Higher Education Law.

Gatchalian also looks forward to the output of a technical working group that would resolve issues on funding deficiencies for free higher education.

He pointed out that funding deficiencies were expected because the Department of Budget and Management (DBM) uses free higher education billings from two years prior as the basis for preparing the National Expenditure Program (NEP). This approach is inconsistent with the free higher education law, which states that the projected number of enrollees should be the basis for determining the funding for free higher education.

Gatchalian said that using enrollment billings as the basis for free higher education funding does not take into consideration the growth of enrollment. Because of this, the growth of