One of the oft-mentioned cuts in the 2019 budget is that of the P3B cut in the Student Financial Assistance Program (StuFAP) of the Commission on Higher Education (CHED). From P4.7B in 2018, the program is allocated only P1.7B in the FY 2019 proposed national budget.

          According to the DBM, the budget for StuFAP was “rationalized” to make way for the implementation of the Free Tuition Law, particularly the Tertiary Education Subsidy (TES) component of the law which was given an additional P11B allocation in the 2019 budget.

          The Tertiary Education Subsidy component is allocated P27B in the 2019 proposed budget from an appropriation of P16B in 2018.

Under the TES, students enrolled in both Public and Private institutions can receive allowances for room and board costs, transportation, books, and school supplies. Those in private HEIs can even have their tuition or a portion of it covered by educational vouchers under the same program. There is also additional support for students with disability, or those in courses that require board examinations.

“Evidently, we have decreased the budget for some programs because they are already redundant with the Free Tuition Program,” Secretary Diokno explained. “What we’re doing is we’re focusing on the Free Tuition Program, and, in doing so, keeping our promise to fund the law as it was written and passed by Congress.”

The overall CHED budget decreased by less than one percent, from P50.5B in 2018 to P50.4B in 2019. Almost a third of this decrease in the CHED budget can be attributed to capital outlay with a decrease of P114M.

          “We did not allow any new construction under the 2019 budget. These schools cannot expand and allow free entry of students. Remember we want not just free education, but quality education, so let’s try to get the best of the best,” Secretary Diokno said.

“My instruction to the State Universities and Colleges is to invest in their faculty, not their buildings,” he added.

According to the DBM, the reduction in the budget allocation of other CHED programs in the 2019 budget can be attributed to the absorptive capacity of the agency.

In 2017, CHED received around P22.5B in allotments, equivalents to its appropriation in the 2017 General Appropriations Act. Of this amount, CHED was able to obligate around P20.7B, or 91.9% of its total allotment, but was only able to disburse P6.9B, or 30.6% of its total allotment.

(30)