Wednesday, August 28, 2013

Why 
the 
government 
should 
continue 
increasing 
the 
UP 
Budget






By Chancellor Caesar
 Saloma

University
 of 
the 
Philippines 
Diliman 
26
 August 
2013

The
Philippine government, through the
Aquino 
administration, started to
 increase earnestly the
 budget
of the University of
the Philippines in
fiscal
year
2013.
It allocated Php10.09B
 which 
is
1.66 times
 more than the 2012 UP budget.
 The average
UP budget
 per year 
in the 
last
 ten
 years
 ending 2012 is
 Php5.63B.
 The UP budget
 was 
Php 4.34 B in 2003.

UP 
is
 the
 only
 national
 university
 of
 the
 country (Republic
 Act
9500). Its
 annual
 budget consists
 of
 three
 major expense categories: Personnel Services (PS),
 Maintenance,
 Operating
 &
Other Expenses (MOOE),
 and Capital
Outlay
 (CO).
 The PS allocation
 is used
 to pay for
 the 
salaries,
 wages
 and
 other
compensation
 of
 permanent,
 temporary,
 contractual
 and
 casual
employees
 while the
 MOOE is
 utilized to 
operate the 
seven
 (7)
constituent
 universities
 of
 UP and 
maintain
 its 
fifteen
 campuses.
 On 
the
 other
 hand, the
 CO
 allocation
 permits
 UP 
to
 purchase
goods 
and
 services 
as
 well
 as
 implement 
infrastructure projects
that
 add
 to
 its
 collection
 of assets.

 Included in
 the
 UP budget 
is
the
 allocation for the Philippine
 General
 Hospital (PGH).

The
 PS
 component
 of
 the
 2012
 UP 
budget
 was
 64.8% 
higher
than
 that
 in 
2008 
implying an
 annual
 average
 increase
 of
 16.2%
in 
the
 said span
 of
 time.
 The
 increases
 enabled
 UP to apply
 a
series
 of
 compensation
 adjustments 
for
 its
employees
 in  accordance
 with 
the 
Salary
 Standardization 
Law
 Policy
 of 
the
Philippine 
government.
  For
 example,
the
 full
 professor
 salary
(SG
29‐8) 
in
 2012
 was
 1.37
times
 higher
 than
 that
 in 
2010.
 For
associate
 (SG
25‐5)
 and
 assistant
 (SG
21‐5)
 professors,
 the
corresponding
 increases
 were
 1.32 
and
 1.2 times, respectively.


Better 
compensation 
is
 aimed 
at
 attracting
 and
 retaining
 highly
talented
 and
 productive
 scholars,
 scientists, researchers
 and
artists 
to 
serve
 in
 UP 
on 
a
 full‐time
 basis.
The
 PS 
component
 of
the
 2013
 UP
 budget
 is
 24.69% 
higher 
than
 in
 2012.

The
MOOE 
component 
is
 a
 distinctive
 feature 
of
 the
 2013
UP
budget.
 At
 Php2.06B, 
it is 2.88times 
larger 
than 
its 
2012
counterpart.
 The 
relative
 increase
 is
 even
 more telling
 at
 3.53 times
 when 
the MOOE
 allocation
 for
 the
 PGH
 is
 considered
separately.
 The 
average annual
 MOOE 
budget 
for
 UP 
is
Php785.655 M
 from 2003 
to 
2012.

In 
2012,
 UP
 Diliman,
 the
 main
 campus
 of 
UP,
 received 
an
MOOE
 allocation of
 Php 103.243 M
 which
 was
 highly
inadequate
 to 
cover
 the
 cost 
of 
energy 
and
 water
 consumption
 as
 well 
as
 security
 and
 janitorial
 services.
 The
 energy 
bill 
of
 UP
Diliman
 amounted 
to
 Php 193.203737 M,
 which
 is
 6.99%
 higher
than
 that
 in
 2011.

 Energy consumption 
increased
 by
 4.18%
primarily
 due 
to 
the
 completion
 of
 new
 buildings
 and
 facilities
particularly 
in 
the National Science
 Complex
 and 
the
Engineering
 Complex.

 The
 2012
 water
 bill
 was
 Php70.130146 M,
 which
 is
 8.74%
 lower 
than
 in 2011.
 Concerted
 efforts
 to
repair
 or 
replace leaking
 pipes
 and
 defective
 water
 fixtures
 have
 led
 to a noticeable
 21.95%
 reduction 
in water
 consumption
 in 
UP 
Diliman
 buildings.


The
 2013
 MOOE
 allocation
 of
 UP
 Diliman
is Php 268.983M, which
 is
 2.61 
times
 larger than
 in
 the
previous
 year.
 The
 said
amount however, is 
still
 not
 sufficient
 to cover the
 increasing
cost
 of 
energy
 and
 water
 consumption 
as 
well
 as
 security
 and
janitorial
 services
 that
 is projected 
to 
be 
at
 least 
Php 420M.

To
 bridge 
the
 gap
 between
 actual
 operations cost and
insufficient
 MOOE
 allotment
 from
 the
national
 government,
 UP
Diliman
 uses
 its
 income
 from tuition
fees
 and 
other
asset
utilization 
initiatives.
 Such
 a
 deficit‐funding
 scheme
however,
reduces
 the
 amount 
of
 money
 that
 is
 available
 for
 making
 the
campus
 more
 enabling
 and
 nurturing.

 It
 has
 postponed
 the
overdue
 rehabilitation/retrofitting
 of
 aging
infrastructures,
scaled
 down
 vital student
 support
 programs,
 and
 stymied
 the
acquisition
 of
 modern
 equipment
 and
 facilities that
 enhance
the safety
 and 
welfare 
of
 the 
UP
 community
 and
 the
 general 
public
that 
regularly 
spend 
time 
in 
the
 493‐hectare
 campus.

The
2013
 UP 
budget
 included
 a
 CO
 allocation
 of
 Php1.45 B
 –
none
 was
 allotted 
in
 the
 previous two
 years.
 In 
2012
however, UP, through
 the
 efforts
 of
 UP
 President
 Alfredo 
Pascual
 was
able
 to
 secure
 Php 1.3B
 from
 the
 Commission
 on
 Higher
Education (CHED) 
as part 
of
 the
 Disbursement
 Acceleration
Plan
 of
 Philippine President
 Aquino,
that enabled it 
to
implement
 new
 CO
 projects 
in
 its constituent universities.


For
 2014,
 UP
 has
 requested 
for 
a
 budget
 of
 Php17.1 B
 that
included
 funding
 proposals
 for 
major
 CO
 projects
 such
 as
 the
Sports
 Complex
 (Php435M), 
the
 College
 of Architecture
Complex 
(Php260.590M), 
the
 College
 of
 Home
Economics Complex
(Php 425M)
 and
 Vinzon’s
 Hall‐Student
Center
(Php100M)
 in UP
Diliman.
The
Executive Branch
 has
submitted
to
Congress
 a
 National
 Expenditure
 Program
 (NEP)
 for
 2014 
that
includes 
a
 UP
 Budget
 of
 Php
8.098 B
 of
 which
 Php1.991B
is
allotted
 for
 PGH.
 The
 UP
 Budget
 in
 the
 proposed
 2014
NEP
represents
 only
 47.36%
 of
 the
 amount
 that 
has been
 originally
requested.
 It 
features 
a
 proposed
 MOOE
 allocation
 that
 is
1.04%
 higher
 than
 in
2013 
and
 there 
is 
no
explicit
 CO
 budget
allocation.


The instruction 
is
 for UP
 to 
source
 the
 funds for its
 proposed
 CO 
projects
 separately from 
CHED. Investing
       seriously
 in
UP 
is
 a
 wise
 strategy
 for
 the 
Philippine
 government and the
country.
The
 infusion
 of 
public
 funds 
that
 permitted
 the
 on‐going
 completion
 of 
the
 National
 Science 
Complex and
t he
Engineering 
Complex, and
 increased
 the 
available
 number
of
graduate
 scholarships 
in
 the
 basic
 and
 applied
sciences,
mathematics
 and
 the
 engineering
 sciences, has
 already 
resulted
in
  meaningful
 human
 capital
 buildup
 in
 the
 form of
 more
 highly
 trained
 PhD
 and
 MS
 graduates.
 It
 has accelerated
 the
generation
 of
 new 
scientific
 knowledge,
 and
 advanced
 the 
development
 of
 technical
 expertise 
in
 critical areas
 of
 national 
importance
 such 
as
 weather
 forecasting,
 disaster 
risk
 response
and
 mitigation
 as
 well
 as
 terrestria l
and
 marine
 resource
management.



Other
 government
 agencies
 such
 as 
the
 DOST, CHED, DA, DENR, DOH, DA
 and
 DepEd as
 well
 as
 Congress
 and
 the
Judiciary
 continue
 to
 rely
 on 
the
 valuable
 expertise
 of
 UP
scholars
 and
 researchers
 in
 the formulation 
and
 implementation
 of
 their
respective
 programs 
and 
projects.

 State
universities
 serve 
about 
a 
third
 of
 all 
college
 students 
in
 the
country, and 
they
 have
 depended
 on
 UP 
to
 provide
 them
 with
their 
next
 generation
 of
 PhD
 faculty
members.The
 number
of
high
 school 
seniors 
taking
 the
 yearly
 UP College
 Admission
 Test
 is 
increasing
 at
 an
 average
 rate of
 3.94%
 since
 August
2007.

 In
 the
 2012
 UPCAT,
 only
 one 
out
 of
 every
 13
applicants
qualified
 for
 admission
 into 
UP
Diliman
 –
 a
 majority
 of
 them
came
 from
 private
 (55.7%)
 and
 public
 science
 (29.4)
high
schools.

 A
 total
 of
 12,732 applicants
 were
 qualified 
for 
the
 entire
 UP 
System indicating
 a
 success
 rate
 of
 one
 in
5.83.

More 
than
 83,500
 high 
school
 seniors
 took
 the
 2013 UPCAT
‐ an
increase
 of
 8.95%
 than 
the
 number 
in
 2012.
 About
 65%
 of
 them
are
 competing
 for
 the 
3,875 
available
 slots 
(the 
same
 number
 as
in 
2012) 
that
 are
 distributed 
in
 the
 68
 undergraduate
 degree
programs
 offered 
by UP
 Diliman.
 Admission
 is
 getting 
more
difficult
 for
 SY
 2014‐2015.

Providing 
solid
 budgetary 
support
 to
 UP
 would
 allow
 it
 to
continue
 rationalizing
 public
 access
 to
 top‐quality
higher
education
 by 
young 
Filipinos
 from
 all
 over 
the
 country.

The
 additional
 funds
 would
 enable
 the
training
 of
 more 
talented
undergraduate
 students
 at a
 rate
 that
 is
 proportional
 to
 the
annual
 increase
 in
 the
 number 
of 
UPCAT
 applications. 
More
investments 
are
 also 
needed 
to
 enhance
 and
 strengthen
 the
academic
 and
 research
 programs
 in the 
other
 six
 constituent
universities
 (UPLB,
 UP
 Manila, 
UP
 Baguio, 
UP
 Visayas,
UP Mindanao,
 Open
 University) 
and 
reduce the
 relatively 
high
concentration 
of
 undergraduate
 and
 graduate
 students
(representing
 45% 
of
 all
 UP 
students)
 studying 
in
 UP
 Diliman.

As 
the leading 
university
 of 
the
 country
 in terms
 of
 research
productivity
 and
 breadth
 of academic
 programs,
UP 
is
 at
 the
forefront
 of
 on‐going efforts to
 harmonize
 and
 standardize
 the
academic
 degree
 programs
 that
 are
 offered
 by
 leading
 ASEAN
 universities 
in
 line with
 the 
implementation
 of
 the
ASEAN
Economic Community Blueprint
 in
 2015.
 UP
 should
 be
 provided
 with
 the
 means
 and
 resources
 necessary
 to 
become one 
of
 the 
truly
 great 
universities
 in
 the
 ASEAN.
 The
 success
 of
UP
 will
 mean greater
 opportunities
 of 
leadership 
for
 many
 more
 highly
 skilled Filipinos in
 this
 dynamic
 ASEAN
 region
 and 
the
 Pacific
 Rim.

Thank
you.

-----------------
About
 the
 author.
 Dr. Saloma
 is 
a professor
 of 
physics
 at 
the
National
 Institute
 of
 Physics,
UP
 Diliman.
He
 received
 the
Galileo
Galilei
 Award
 from
 the international
 Commission
 for
 Optics
 in
 2004
 and
 the
 triennial
 ASEAN Outstanding
 Scientist
 and
Technologist
 Award
 from
 the
 ASEAN
 Committee
on
 Science
and Technology
 in
 2008.
 He 
is
 included
 in
 the
 Ultimate
 List
 of
 15
Asian Scientists
 To
 Watch 
by
Asian
 Scientist
magazine 
(15
May 2011).
He 
is
 a
 member 
of
 the
 National
 Academy 
of 
Science 
and
Technology Philippines and
 a
 Senior
Member
 of
 the
 Optical
 Society
 of
 America.
 In
 August
 2011,
 he 
wrote
 an
 article
 entitled,
 “Why
 the
 Philippine
 Government Should
 Increase 
Its
Budget for
 the
 National
 University.



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