NEGROS Occidental Governor Eugenio Jose Lacson has raised doubts over the proposed bill filed by Senator Robin Padilla which seeks to provide local government units (LGUs) with enough funding for their priority development projects through a budget reform.
Lacson is questioning how Padilla intends to fund Senate Bill No. 447 that will create a Local Development Equalization Fund (LDEF) to be used strictly for development projects, activities, and programs listed in their comprehensive local development plans.
Under the bill, the national government will fund the LDEF to make sure provinces, cities, municipalities, and barangays can implement their three-year comprehensive development plans.
This includes P500 million to P1 billion for provinces, P100 million to P200 million for cities, P50 million to P100 million for municipalities, and P3 million to 5 million for barangays annually.
The amount of the LDEF for each province, city, or municipality will be based prescribed amount for each first class LGU at 50 percent, prescribed amount for each second class at 60 percent, 70 percent for third class LGU, 80 percent for fourth class LGU, 90 percent for fifth class LGU and 100 percent for sixth class LGU.
The bill prohibits the use of the funds for cash gifts, bonuses, food allowance, medical assistance, uniforms, supplies, meetings, communication, payment of water, light, and fuel bills and salaries or overtime pay.
It cannot be used for traveling expenses registration or participation fees in trainings and seminars; repair and maintenance work in administrative offices; acquisition of furniture, equipment; and appliances acquisition or maintenance of vehicles either.
The bill also requires a performance- based evaluation of the use of the funds by an oversight evaluation committee to be headed by an undersecretary of the Department of Interior and Local Government (DILG).
The LDEF will be decreased for LGUs with an "unsatisfactory" performance rating. Two successive unsatisfactory ratings may result in the removal of the LDEF, although an LGU can reapply for it after one year.
Lacson, however, believes that the Mandanas-Garcia ruling was "the budget reform that gave the LGU's more funds for development projects."
The Mandanas-Garcia ruling fully transfers or devolves the delivery of basic services to LGUs, stemming from a 2013 petition made by Governor Mandanas and former Bataan Governor Enrique Garcia Jr., together with other local elective officials, before the Supreme Court (SC) on LGU shares of the IRA or National Tax Allotment (NTA).