THE LEAGUE'S ADVOCACIES

Building Upon Our Gains and Breaking New Grounds

L-R Gov. Joson, Gov. Singson, Gov. Aumentado & Gov. Dela Cruz during the 1st NEB Meeting in Cebu

The Internal Revenue Allotment

  • The internal revenue allotment (IRA) in the proposed GAA for 2005 is pegged at P 151.623 Billion based on the provisions of the Local Government Code of 1991. And in accordance with the spirit of the Code, the IRA was not included as part of the National Expenditure Program (NEP) of the government. This is a dramatic and significant shift in the treatment of the IRA.
  • The National Executive Board (NEB) adopted a Resolution praising Her Excellency President Macapagal-Arroyo for this decision. This was previously done in 2002 but Congress deemed it part of the NEP and included it as an expense item. Hopefully this year, Congress would appreciate the wisdom of its own law despite the brewing fiscal crisis.
  • As proposed by the Department of Budget and Management (DBM), the IRA for 2005 was P10 Billion more than the 2004 IRA, which is actually a re-enactment of the GAA 2003.
  • The greatest threat to the IRA is the proposal of Albay Representative Joey Salceda to suspend the release of the IRA for 18 months. The NEB strongly opposed this proposal as it adopted a Resolution urging the President to reject the proposal. Concurrently, the NEB resolved to look for other measures to ease the fiscal crisis. This position has been presented to the President and to the Legislative-Executive Development Advisory Council (LEDAC) during its regular meetings. The President and some members of LEDAC are not inclined to reduce our IRA as evidenced by the proposed GAA.
  • The proposal was rejected on three fundamentals grounds: 1) it violates the Constitution and the Local Government Code of 1991; 2) it would disrupt the delivery of basic social services; 3) it does not resolve to ease the budget deficit but aggravate the fiscal situation; and 4) it would aggravate the insurgency problem in the countryside because of interference in the delivery of services.

The Budget Deficit

  • In line with the efforts to help the government address the ballooning budget deficit, the NEB adopted a resolution to fully harness the 20 Percent Development Funds for basic social and health services, education, livelihood, water and electrification projects and for the priority convergence programs under the 10-point agenda of the President. As we support the said agenda, the NEB agreed to pursue measures in our respective jurisdictions to champion these objectives.
  • The NEB also adopted a resolution urging all local governments to support the tax campaign of the government to increase the IRA and enhance economic development. Pursuant to this resolution, the League invited BIR Commissioner Guillermo Parayno to give local government units (LGUs) insights on how to ensure collection efficiency.
  • As the League sits in the LEDAC, we have also expressed our cooperation to reduce the budget deficit without however undermining local autonomy and disrupting the delivery of basic social services.

The Local Government Service Equalization Fund

  • During the NEB Meeting held in Cebu last 21 August 2004, and the General Assembly held in 6 September 2004 at the Shangri-la Hotel, the DBM gave a presentation on how the LGSEF was distributed. While some 70 % of the provinces gained in the allocation of the funds, the NEB resolved to encourage the Province of Batangas to file a Motion for Execution to clarify the issues and resolve conflicts especially the use of funds thru members of Congress. We are also requesting DBM to provide as a computation on how the LGSEF was allocated and how it should have been distributed as per the codal formula.
  • As regards unreleased portion of the IRA, the NEB passed a Resolution seeking the approval of the President for the securitization of the unreleased of the balance which amounts to P 12.4 Billion due to the re-enacted GAAs for FY 2000 and 2003.

Jumpstarting Local Development

  • The League in partnership with the Local Government Academy (LGA) sponsored a seminar-workshop for our new governors last 21-22 August 2004 in Cebu. As area managers and local chief executives, the new governors were given a brief but comprehensive course on jumpstarting local development. To maximize the program, their respective Vice Governors and Senior Board Members were also invited.
  • This program is a traditional activity of the League to professionalize the delivery of services by LGUs and promote the developmental and progressive management of local communities.
L-R Gov. Lee, Gov. Romualdo, Gov. Daza & Gov. Lara during the 2nd General Assembly in EDSA Shangri-La

 

A Strong League for a Strong Republic

  • We have began organizing the League with the vision to make it a major participant in shaping national and local policies, and in pursuing programs and projects that cater to the basic needs of our people.
  • We are also giving all our support to our media bureau to advocate for stronger local governments and for meaningful autonomy. This should be a powerful instrument to lobby for our interest and to oppose proposed legislations that hurt our welfare.

Our Thrust and Our Responsibility

  • The last quarter of 2004 is most crucial in protecting our IRA. With the on-going congressional deliberations on the general appropriations for 2005, there is an urgent need to close ranks. Not only to ensure the allocation of the right IRA but also to resist attempts to undermine our fiscal autonomy and disrupt the delivery of services.
  • The last quarter will also define our partnership with the national government for the next three (3) years. In this regard, we shall support all programs and projects of the government that seeks to bring economic progress in the countryside especially with regard to enterprise development to augment local revenues. We shall seek and strengthen all venues for cooperation and convergence. But we shall stop short where our autonomy and powers under the Local Government Code are eroded.

And lastly, the last quarter should also see a more dynamic and pro-active League. In this aspect, we shall actively participate in all venues that require our position and intervention, most especially in Congress and LEDAC. We shall also make our stand clear and credible in the media to protect our people’s interest.