DEPARTMENT OF EDUCATION, CULTURE AND SPORTS

DEPARTMENT OF BUDGET AND MANAGEMENT

AND
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT

JOINT CIRCULAR NO. 01, S. 1998

14 April 1998

TO : GOVERNORS, MAYORS, SUPERINTENDENTS, AND DISTRICT

SUPERVISORS OF SCHOOLS, MEMBERS OF THE LOCAL SCHOOL
BOARDS AND OTHER NATIONAL AND LOCAL GOVERNMENT
OFFICIALS CONCERNED

SUBJECT : PRESCRIBING THE RULES AND REGULATIONS ON THE

UTILIZATION OF THE SPECIAL EDUCATION FUNDS (SEF) BY THE
LOCAL SCHOOL BOARDS FOR THE OPERATION AND
MAINTENANCE OF ELEMENTARY AND SECONDARY PUBLIC
SCHOOLS

1.0 PURPOSE

This Joint Circular is being issued to prescribe the rules and regulations to be
observed in the utilization of the Special Education Funds (SEF) by the Local
School Boards for the operation and maintenance of elementary and secondary
public schools.

2.0 COVERAGE

This Joint Circular shall cover the annual/supplementation requirement to be set

aside by the Local School Boards for the operation and maintenance of public
schools including organization of extension classes and payment of allowances of
public school teachers, construction, repair and maintenance of school buildings,
facilities and other needed capital outlays such as the purchase titling and
improvement of school sites, educational research and acquisition/procurement
of books, instructional materials, periodicals and equipment including information
technology resources as well as other expenses chargeable against the proceeds
from the additional one percent (1%) tax on real property accruing to the SEF
pursuant to Section 272 of R.A. No. 7160.

3.0 DEFINITION OF TERMS

3.1 For the purpose of this Circular, Public Elementary and Secondary Schools
shall mean government financed and managed schools which include pre-
school, elementary, secondary schools, national and general
comprehensive high schools and their annexes and those public
elementary and secondary schools that may be established by law.
 3.2 Extension classes as referred to shall mean additional classes needed to
accommodate all children of school age desiring to enter public schools to
acquire basic education.

4.0 PRIORITIZATION OF EXPENSES CHARGEABLE TO SEF

The Local School Board shall give priority to the following expenses chargeable
against SEF:

a. Operation and Maintenance of public schools, including organization of

extension, non-formal, remedial and summer classes, as well as payment
of existing allowances of teachers granted by local government units
chargeable against SEF as of 31 December 1997, provided that any
additional allowances that may be granted to teachers by LGUs shall be
charged to the general fund of LGUs, subject to existing budgeting rules
and regulations;
b. Construction and repair of school buildings, facilities and equipment
including the acquisition, titling and improvement of school sites;
c. Educational research;
d. Acquisition/procurement of books, instructional materials, periodicals and
equipment including information technology resources; and
e. Expenses for school sports activities at the national, regional, division,
district, municipal and barangay levels as well as for other DECS related
activities, including co-curricular activities.

5.0 RESOLUTION OF ISSUES

Issues and conflicts arising from the implementation of this Circular, and cases
not covered by the above provisions shall be submitted to the DECS for
resolution and in consultation with respective LGUs concerned.

6.0 REPEALING CLAUSE

All circulars, guidelines, rules and regulations or any provisions thereof which are
inconsistent with the provisions of this Circular are hereby modified or repealed
accordingly.

7.0 EFFECTIVITY

This Circular shall take effect immediately.

ERLINDA C. PEFIANCO EMILIA T. BONCODIN

Secretary Secretary
Department of Education, Culture & Sports Department of Budget and Management

EPIMACO A. VELASCO
Secretary
Department of the Interior and Local Government
 DEPARTMENT OF EDUCATION, CULTURE AND SPORTS
DEPARTMENT OF BUDGET AND MANAGEMENT
And
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT

Joint Circular No. 01-A

March 14, 2000

TO : GOVERNORS, MAYORS, SUPERINTENDENTS, AND DISTRICT

SUPERVISORS OF SCHOOLS, MEMBERS OF THE LOCAL SCHOOL
BOARDS AND OTHER NATIONAL AND LOCAL GOVERNMENT
OFFICIALS CONCERNED

SUBJECT : SUPPLEMENTAL PROVISIONS TO DECS, DBM AND DILG JOINT

CIRCULAR NO. 01, S. 1998 DATED 14 APRIL 1998

1.0 PURPOSE

This Circular is being issued to provide supplemental provisions to DECS, DBM

and DILG Joint Circular No. 01, S. 1998 dated 14 April 1998 entitled: “Prescribing
Rules and Regulations on the Utilization of the Special Education Funds (SEF) by
the Local School Boards (LSB) for the Operation and Maintenance of Elementary
and Secondary Public Schools”.

2.0 PRIORITIZATION OF EXPENSES CHARGEABLE TO SEF

2.1 The SEF may be used to fund the establishment of new classes as
extensions of existing public elementary or secondary schools as
approved by the DECS Secretary upon the recommendation of the DECS
Regional Director and the certification of the Division Superintendent
concerned of the necessity and urgency of establishing extension classes
in the province, city, or municipality as the case may be, provided that no
extension class shall be established unless the number of pupils/students
in such extension class shall at least be fifteen (15).

2.2 DECS shall be responsible for the assignment of teaching personnel to

handle newly established extension classes.

2.3 In instances where there are no teaching positions available in DECS to

handle these classes, a portion of the SEF may be utilized for the
payment of compensation of those teaching personnel who will be hired
to temporarily handle such DECS-approved extension classes, provided
that such hiring shall only be for the period covered by a particular SEF
budget.
 2.4 To temporarily handle these extension classes, as provided for in the SEF
budget, only those who have successfully passed the Licensure
Examination for Teachers shall be hired. Such hiring shall be approved by
the Local Chief Executive in accordance with pertinent CSC and DBM
guidelines on hiring and compensation.

2.5 Nothing in this provision shall be construed to mean an obligation on the

part of the national government to convert such positions chargeable
against SEF into regular positions to be funded from the national funds.

2.6 Subsequently, should new/additional positions be provided for DECS in a

budget year, DECS shall give priority in the deployment/assignment of
such teaching positions or items to those extension classes.

2.7 It is, however, understood that qualified personnel handling these

extension classes temporarily, may be considered by DECS to fill vacant
teaching positions as authorized in the DECS staffing pattern and funded
in its budget.

3.0 REPORTING REQUIREMENT

The SEF Budget and a quarterly report of its utilization (using form as per Annex
“A”) shall be prepared and submitted by the Local School Board to the DECS
ROs, copy furnished the DBM ROs and DILG ROs. The aforesaid quarterly report
shall be submitted one week after the end of the quarter.

4.0 EFFECTIVITY

This Circular shall take effect immediately.

ANDREW B. GONZALES BENJAMIN E. DIOKNO

Secretary Secretary
Department of Education, Culture and Sports Department of Budget and Management

ALFREDO S. LIM
Secretary
Department of the Interior and Local Government