An Assessment and An Assessment and Review of the New Review of the New

Tuition and Socialized Tuition and Socialized Financial Assistance Financial Assistance

ProgramProgram

Office of the Student RegentOffice of the Student Regent

Presented on the 28 September 2007 meetingPresented on the 28 September 2007 meeting

of the Board of Regentsof the Board of Regents

Outline of DiscussionOutline of Discussion

I.I. Introduction Introductiona. a. Objectives of the Policy ReviewObjectives of the Policy Reviewb.b. Scope and Limitation of the Policy ReviewScope and Limitation of the Policy Reviewc. c. Significance of the Policy ReviewSignificance of the Policy Review

II.II. Impact presentation and assessment Impact presentation and assessmenta. a. Low enrollment rates / High no-show ratesLow enrollment rates / High no-show ratesb. b. Threatened closure of particular courses Threatened closure of particular courses c. c. Driving away qualified studentsDriving away qualified students

d.d. Questioning the survival in UP Questioning the survival in UP

e. e. Stretching the limits of the Filipino Stretching the limits of the Filipino family’s financesfamily’s finances

f. f. Additional stress factors for the Additional stress factors for the education systemeducation system

g. g. Depriving education to majority of Depriving education to majority of the the youthyouth

h. h. Continued opposition, unified Continued opposition, unified freshmen freshmen perception perception

i. i. More damage to comeMore damage to come

III. III. Tuition and STFAP Policy CritiqueTuition and STFAP Policy Critiquea. a. On the basic postulates on the On the basic postulates on the concept concept of educationof educationb. b. On the “stagnation of state support”On the “stagnation of state support”c.c. On UP’s comparison to private On UP’s comparison to private schoolsschoolsd.d. On the “costing” and socialization of On the “costing” and socialization of

tuitiontuitione. e. On the faulty legitimacy of the On the faulty legitimacy of the implemented policyimplemented policy

IV.IV. Recommendations Recommendations

I. IntroductionI. IntroductionObjectives of the Policy Review

to determine the initial impacts of the tuition to determine the initial impacts of the tuition increase on UP freshman enrollment system-increase on UP freshman enrollment system-widewide

to re-examine the policy bases and to re-examine the policy bases and presumptions of the new tuition rates designed presumptions of the new tuition rates designed in the new Socialized Tuition Financial in the new Socialized Tuition Financial Assistance Program (STFAP)Assistance Program (STFAP)

to critique and disprove the bases of the new to critique and disprove the bases of the new policy in increasing the tuitionpolicy in increasing the tuition

to recommend policy measures to the Board of to recommend policy measures to the Board of Regents and the UP administration to address Regents and the UP administration to address the presented problemsthe presented problems

Scope and LimitationScope and Limitation

This Policy Review is limited by the This Policy Review is limited by the inadequacy and incompleteness of inadequacy and incompleteness of official enrollment and STFAP data official enrollment and STFAP data received from UP administration received from UP administration offices. Much of the official system-offices. Much of the official system-wide data only comprised of wide data only comprised of consolidated freshman enrollment consolidated freshman enrollment data, without a detailed breakdown data, without a detailed breakdown based on UPCAT qualifiers, walk-ins, based on UPCAT qualifiers, walk-ins, wait-lists, among others.wait-lists, among others.

As such, the study had to rely much As such, the study had to rely much on college-level data and reports from on college-level data and reports from the student councils of the Katipunan the student councils of the Katipunan ng mga Sangguniang Mag-aaral sa UP ng mga Sangguniang Mag-aaral sa UP (KASAMA sa UP), a system-wide (KASAMA sa UP), a system-wide alliance of student councils, and OSR alliance of student councils, and OSR volunteers. Nonetheless, these data volunteers. Nonetheless, these data would be sufficient for an assessment would be sufficient for an assessment of the new tuition and STFAP scheme, of the new tuition and STFAP scheme, and forward policy recommendations and forward policy recommendations to the UP Administration.to the UP Administration.

II. Impact presentation and II. Impact presentation and assessmentassessment

A.A. Low enrollment rates / High no-show rates Low enrollment rates / High no-show rates

If the freshman enrollment data collated by If the freshman enrollment data collated by different student councils and OSR volunteers are different student councils and OSR volunteers are used, low enrollment figures have been registered used, low enrollment figures have been registered in certain courses of study and professions.in certain courses of study and professions.

The 12.3% decreased enrollment figures in the The 12.3% decreased enrollment figures in the entire UP system may be seen as entire UP system may be seen as prima facie prima facie coincidental only with the implementation of the coincidental only with the implementation of the tuition increase, especially as the tuition increase tuition increase, especially as the tuition increase remain the only new variable introduced in this remain the only new variable introduced in this year’s enrollmentyear’s enrollment

Low enrollment was registered in various UP units Low enrollment was registered in various UP units systemwide.systemwide.

Appendix 2 (system-wide enrollment)Appendix 2 (system-wide enrollment)

Table 2.Selected UP Diliman Courses with Low Freshman Enrollment Relative to the Quota

CoursesQuota Freshman

QualifiersConfirmed Enrollees

Actual Enrollees

Actual enrollees /Course Quotas

BA Araling Filipino 25 1 1 0 0%

BA Filipino 25 n/a n/a 0 0%

BA Malikhaing Pagsulat sa Filipino

25 n/a n/a 0 0%

BA Theater Arts 25 9 1 1 4%

BS Mining Engineering 35 2 2 2 5.71%

BS Home Economics 30 3 2 2 6.67%

BA Comparative Literature 50 6 4 5 10%

BS Geodetic Engineering 75 15 12 9 12%

BA Creative Writing 30 5 6 5 16.67%

BA History 35 13 7 6 17.14%

BS Community Development 35 9 7 6 17.14%

BS Social Work 35 8 6 6 17.14%

B. Threatened closure of particular courses

Courses Quota FreshmanQualifiers

Confirmed Enrollees

Actual Enrollees

Actual enrollees /Course Quotas

B Landscape Architecture 35 12 6 6 17.14%

BS Geology 100 21 16 19 19%

BA Art Studies 10 4 2 2 20%

B Library and Information Science

35 10 8 7 20%

B Music 15 15 4 3 20%

BA Communication Research 40 14 9 9 22.5%

BA Public Administration 70 20 18 16 22.86%

BS Metallurgical Engineering 35 9 11 9 25.71%

BS Physical Education 15 2 1 1 26%

BA Philosophy 70 32 21 20 28.57%

B Elementary Education 35 16 13 10 28.57%

BA Speech Communication 70 29 24 21 30%

Courses Quota FreshmanQualifiers

Confirmed Enrollees

Actual Enrollees

Actual enrollees /Course Quotas

BA English Studies 75 40 29 27 36%

BS Interior Design 45 23 18 16 35.56%

BA Sociology 35 14 12 12 34.29%

BS Business Administration 100 102 49 44 44%

B Sport Science 20 14 9 9 45%

BS Applied Physics 60 28 27 24 40%

BS Materials Engineering 75 30 44 45 60%

BS Statistics 120 64 67 57 47.5%

B Fine Arts 35 33 19 19 54.29%

BS Physics 60 28 35 33 55%

BA Anthropology 30 22 15 16 53.3%

BS Business Administration and Accountancy

100 101 58 54 54%

BS Geography 10 10 7 5 50%

The use of the course quotas The use of the course quotas compared the actual freshman compared the actual freshman enrollment in a particular course is an enrollment in a particular course is an indicator of the prospective indicator of the prospective decreasing academic and market decreasing academic and market relevance of these courses, and the relevance of these courses, and the corresponding effect on the production corresponding effect on the production of knowledge and graduates for the of knowledge and graduates for the scientific and cultural development of scientific and cultural development of the university and the country. the university and the country.

Arts and Humanities Arts and Humanities CoursesCourses

There are no new freshmen in UPD’s Araling There are no new freshmen in UPD’s Araling Pilipino, Filipino, and Malikhaing Pagsulat sa Pilipino, Filipino, and Malikhaing Pagsulat sa Filipino. This is notwithstanding low Filipino. This is notwithstanding low freshman enrollment in Comparative freshman enrollment in Comparative Literature, Theater Arts, Speech Literature, Theater Arts, Speech Communications, Creative Writing, English Communications, Creative Writing, English Studies, and Art Studies, all in the College of Studies, and Art Studies, all in the College of Arts and Letters (CAL). Arts and Letters (CAL).

Low freshmen enrollment has also been Low freshmen enrollment has also been registered in other culture and arts courses registered in other culture and arts courses including Communications Research, including Communications Research, Interior Design, and Fine Arts. Interior Design, and Fine Arts.

Engineering, Natural and Engineering, Natural and Social Sciences CoursesSocial Sciences Courses

In UPD College of Engineering, out of all 12 In UPD College of Engineering, out of all 12 undergraduate engineering courses in UPD, undergraduate engineering courses in UPD, enrollment in the BS Metallurgical Engineering, BS enrollment in the BS Metallurgical Engineering, BS Geodetic Engineering and BS Mining Engineering Geodetic Engineering and BS Mining Engineering proved to be the most disturbing, with only 25.71%, proved to be the most disturbing, with only 25.71%, 12% and 5.71% actual enrollees relative to the course 12% and 5.71% actual enrollees relative to the course quotas, respectively. quotas, respectively.

Even other science courses have exhibited markedly Even other science courses have exhibited markedly low enrollment rates as compared to the course low enrollment rates as compared to the course quotas. This trend is reflected in both the natural quotas. This trend is reflected in both the natural sciences (as in the case of BS Geology, Physics and sciences (as in the case of BS Geology, Physics and Applied Physics) and the social sciences (BA History, Applied Physics) and the social sciences (BA History, Philosophy, Sociology, Anthropology and Geography). Philosophy, Sociology, Anthropology and Geography). The same can be observed for BS Home Economics The same can be observed for BS Home Economics and BS Statistics. and BS Statistics.

Other Professions and Other Professions and Courses of StudyCourses of Study

Only a little more than ten students in Only a little more than ten students in both courses of the College of Social Work both courses of the College of Social Work and Community Development.and Community Development.

Other courses focusing on the Other courses focusing on the improvement of social services delivery in improvement of social services delivery in the country share the same fate. Physical the country share the same fate. Physical Education, Sports Science, Elementary Education, Sports Science, Elementary Education and Library and Information Education and Library and Information Science barely filled up at least 10 slots in Science barely filled up at least 10 slots in their programs.their programs.

Also disturbing is the less than twenty Also disturbing is the less than twenty freshmen turn-out in BA Public freshmen turn-out in BA Public Administration, considering its status as a Administration, considering its status as a National College within the university.National College within the university.

In all of these, it is clear that there has been In all of these, it is clear that there has been low freshman enrollment for the Academic low freshman enrollment for the Academic Year 2007-2008 in important courses of Year 2007-2008 in important courses of study and professions. The relevance of study and professions. The relevance of these courses are being endangered should these courses are being endangered should the trend of low freshman enrollment the trend of low freshman enrollment continue in the coming years.continue in the coming years.

C.C. Driving away qualified Driving away qualified studentsstudents

Table 3Selected Courses with Low Freshman Enrollment Relative to the Number of Qualifiers

Courses FreshmanQualifiers

Confirmed Enrollees

Actual Enrollees

Actual enrollees / UPCAT Qualifiers

UPV Iloilo  

BSBA Marketing 124 46 68 54.84%

BS Accountancy 122 70 66 54.10%

BS Management 126 54 68 53.97%

BS Biology 102 30 32 31.37%

Source: Compiled data from the UPV OUR

By increasing the tuition, the university By increasing the tuition, the university has automatically lost some of its has automatically lost some of its comparative advantage to other schools in comparative advantage to other schools in terms of affordability. As the tuition gap terms of affordability. As the tuition gap between UP and other universities offering between UP and other universities offering similar courses narrowed with the similar courses narrowed with the implementation of the tuition increase, implementation of the tuition increase, UPCAT qualifiers and their families now UPCAT qualifiers and their families now readily look for alternative schools, readily look for alternative schools, compared to previous years when the compared to previous years when the default University of choice can often be default University of choice can often be UP, in terms of cost and quality.UP, in terms of cost and quality.

Presumably, UP shall now be freely Presumably, UP shall now be freely competing with the country’s top high-cost competing with the country’s top high-cost private schools insofar as higher income private schools insofar as higher income students are concerned, notwithstanding students are concerned, notwithstanding free competition with universities catering free competition with universities catering middle income students. middle income students.

UP shall also now be competing with other UP shall also now be competing with other SUCs, in getting the best students from SUCs, in getting the best students from lower income strata, as the tuition in UP lower income strata, as the tuition in UP for low-income students is substantially for low-income students is substantially higher compared to schools catering to higher compared to schools catering to students in these income levels.students in these income levels.

Richer students tend to choose courses Richer students tend to choose courses primarily based on the course curricula of primarily based on the course curricula of each university with tuition issues playing each university with tuition issues playing subsidiary considerations only. As the subsidiary considerations only. As the analysis go further down the socio-analysis go further down the socio-economic income levels, tuition economic income levels, tuition considerations can have more weight over considerations can have more weight over course curricula on the choice of courses course curricula on the choice of courses and schools. These observations were and schools. These observations were noted through the informal consultations noted through the informal consultations with freshmen’s parents during the with freshmen’s parents during the enrollment.enrollment.

D.D. Questioning the survival Questioning the survival in UPin UP

Originally, the UP administration Originally, the UP administration proposed 3 mechanisms to serve as proposed 3 mechanisms to serve as impact buffers: (1) early impact buffers: (1) early announcement of the new scheme, announcement of the new scheme, (2) putting in place an installment (2) putting in place an installment program for tuition payments and (3) program for tuition payments and (3) financial assistance through STFAP financial assistance through STFAP implementation of the new tuition implementation of the new tuition scheme.scheme.

Mechanism (1) was implemented in order to Mechanism (1) was implemented in order to provide prospective students “with an provide prospective students “with an informed choice regarding alternative informed choice regarding alternative education choices and their respective cost-education choices and their respective cost-quality trade-offs” according to the de Dios quality trade-offs” according to the de Dios report. It is then interesting to note that in the report. It is then interesting to note that in the freshmen perception survey, a significant freshmen perception survey, a significant 20.9% of the respondents became aware of 20.9% of the respondents became aware of the tuition increase only on the day of the the tuition increase only on the day of the enrollment itself. Also the source of enrollment itself. Also the source of information regarding the tuition increase information regarding the tuition increase was primarily the media, with 47.8%, and the was primarily the media, with 47.8%, and the relatives and friends, 40.3%. Only 22.8% got relatives and friends, 40.3%. Only 22.8% got the information on the tuition increase from the information on the tuition increase from the UP administration.the UP administration.

Option (2) of an installment program, Option (2) of an installment program, however, never materialized. Many however, never materialized. Many parents have stressed that the lack parents have stressed that the lack of measure to spread out the burden of measure to spread out the burden of raising their children’s tuition has of raising their children’s tuition has aggravated their hardships. aggravated their hardships.

The implementation of the STFAP, on the The implementation of the STFAP, on the other hand, was hardly felt to adequately other hand, was hardly felt to adequately address the students’ financial concerns. The address the students’ financial concerns. The freshmen survey states that among those freshmen survey states that among those who applied for STFAP and whose results who applied for STFAP and whose results were released, 66.1% felt the STFAP to be were released, 66.1% felt the STFAP to be inadequate.inadequate.

This inadequacy of the STFAP can be reflected This inadequacy of the STFAP can be reflected in the numerous cases of students being in the numerous cases of students being assigned to higher income brackets which are assigned to higher income brackets which are not reflective of their economic status. not reflective of their economic status. Inherent flaws in the STFAP leads to a Inherent flaws in the STFAP leads to a concentration of the population under the concentration of the population under the higher bracket groups.higher bracket groups.

The current STFAP placed more students The current STFAP placed more students under the policy of the tuition increase when under the policy of the tuition increase when compared to the old STFAP bracketing. Take compared to the old STFAP bracketing. Take the case of UPLB as an example. In the old the case of UPLB as an example. In the old STFAP, those under Brackets 1-5 qualified STFAP, those under Brackets 1-5 qualified for non-payment of tuition. This amounts to for non-payment of tuition. This amounts to around 5% of the population. In the new around 5% of the population. In the new STFAP, however, only 2.4% of the freshmen STFAP, however, only 2.4% of the freshmen will not pay tuition. will not pay tuition.

Furthermore, students who should have Furthermore, students who should have been granted tuition discounts, those in been granted tuition discounts, those in Bracket 6-8 under the old scheme for Bracket 6-8 under the old scheme for example, were faced with a more than 100% example, were faced with a more than 100% increase this year as their tuition effectively increase this year as their tuition effectively became P600/unit (under Bracket C).became P600/unit (under Bracket C).

Table 4.

Comparison of STFAP Recipients in UP Los Baños

STFAP recipients (freshmen) 2007-08

STFAP recipients 2006-07

A 53 2.88% B9 8608 92.37%

B 1091 59.29%

C 382 20.76% B6-8 222 2.38%

D 87 4.73% B5 169 1.81%

E 44 2.39% B1-4 305 3.27%

TFE 183 9.95% B5A 15 0.16%

TOTAL 1840 TOTAL 9319

Source: data compiled by the UPLB USC

The tendency to lean more towards the The tendency to lean more towards the higher incomes is reflected by the very higher incomes is reflected by the very nature of the STFAP. It discourages the nature of the STFAP. It discourages the ordinary family to enter their child in UP for ordinary family to enter their child in UP for the great financial risk it poses. Meeting the the great financial risk it poses. Meeting the current daily cost of living entails a family of current daily cost of living entails a family of six to have an annual income of anywhere six to have an annual income of anywhere between Php254-286,000. In this set-up, between Php254-286,000. In this set-up, they can allocate only a miniscule, or they can allocate only a miniscule, or realistically close to nothing of their finances realistically close to nothing of their finances for their children’s education. This is further for their children’s education. This is further aggravated by the STFAP as the mentioned aggravated by the STFAP as the mentioned annual income merits a P300 per unit annual income merits a P300 per unit payment.payment.

E.E. Stretching the limits of Stretching the limits of the Filipino family’s the Filipino family’s

financesfinancesAs per the UP Diliman freshman perception survey and the As per the UP Diliman freshman perception survey and the informal consultations with parents during the freshman informal consultations with parents during the freshman enrollment last May 2007, the following are the most common enrollment last May 2007, the following are the most common outside sources of finances for their children’s UP education:outside sources of finances for their children’s UP education:

GSIS and SSS salary loansGSIS and SSS salary loans UP Student LoansUP Student Loans Private scholarshipsPrivate scholarships Government /LGU ScholarshipsGovernment /LGU Scholarships DOST ScholarshipsDOST Scholarships UP ScholarshipsUP Scholarships OFW remittances from relativesOFW remittances from relatives Looking for benefactors, either from relatives or family Looking for benefactors, either from relatives or family

friendsfriends Taking out savings originally intended for other purposesTaking out savings originally intended for other purposes Usurious loans from 5-6 operatorsUsurious loans from 5-6 operators

Loans can only do so much in Loans can only do so much in financing the entire education of a financing the entire education of a UP student in the family, as salary UP student in the family, as salary loans unnecessarily narrow the loans unnecessarily narrow the disposable income of families for disposable income of families for other essentials in the long-term, other essentials in the long-term, despite the short-term benefit of despite the short-term benefit of facilitating actual enrollment in the facilitating actual enrollment in the University.University.

On the other hand, the number of On the other hand, the number of scholarships which may be availed by UP scholarships which may be availed by UP students, particularly Department of students, particularly Department of Science and Technology (DOST)and private Science and Technology (DOST)and private scholarships, are now expected to become scholarships, are now expected to become less. The scholarship resources of these less. The scholarship resources of these institutions shall readily be drained with the institutions shall readily be drained with the increase in tuition and fees. Unless increase in tuition and fees. Unless scholarship resources increase considerably, scholarship resources increase considerably, students and scholarship institutions may students and scholarship institutions may face either fewer students with full face either fewer students with full scholarships, or more partial scholarships to scholarships, or more partial scholarships to accommodate more students.accommodate more students.

For example, assume that the DOST For example, assume that the DOST scholarship budget is pegged at scholarship budget is pegged at PhP1M. Instead of accommodating PhP1M. Instead of accommodating around 166 UP students for DOST around 166 UP students for DOST scholarships under the old tuition scholarships under the old tuition structure (300/unit, assumed structure (300/unit, assumed simplified total tuition/fee at PhP simplified total tuition/fee at PhP 6000), it can now only accommodate 6000), it can now only accommodate around 71 students under the new around 71 students under the new tuition structure (Bracket C, 600/unit, tuition structure (Bracket C, 600/unit, simplified total tuition/fee at simplified total tuition/fee at PhP14000.PhP14000.

The hardships underwent by the The hardships underwent by the iskolars ng bayan and their families iskolars ng bayan and their families have led them to question the have led them to question the feasibility of continuing their feasibility of continuing their enrollment in UP.enrollment in UP.

F.F. Additional stress factors Additional stress factors for the education systemfor the education system

Given the university’s position as the Given the university’s position as the country’s country’s premier state universitypremier state university, it , it serves as a model of excellence to serves as a model of excellence to other educational institutions. With other educational institutions. With the UP administrations the UP administrations implementation of the new tuition implementation of the new tuition policy, it has laid basic premises for policy, it has laid basic premises for other universities to follow suit.other universities to follow suit.

In a span of six months after UP has In a span of six months after UP has approved its tuition increase, other major approved its tuition increase, other major universities have declared intentions to universities have declared intentions to increase their tuition using the same bases increase their tuition using the same bases as that of UP’s tuition and STFAP policy as that of UP’s tuition and STFAP policy presumptions. An example is the scrapped presumptions. An example is the scrapped 500 percent proposed tuition hike in The 500 percent proposed tuition hike in The Polytechnic University of the Philippines’ Polytechnic University of the Philippines’ (PUP).(PUP).

Other universities: Eulogio Amang Rodriguez Other universities: Eulogio Amang Rodriguez Institute for Science and Technology Institute for Science and Technology (EARIST), the Philippine Normal University (EARIST), the Philippine Normal University (PNU) the Mindanao State University [MSU] (PNU) the Mindanao State University [MSU] and University of Northern Philippines and University of Northern Philippines (UNP).(UNP).

UP’s tuition hike has also been cited, UP’s tuition hike has also been cited, although in not in black-and-white, by although in not in black-and-white, by other private universities as justification for other private universities as justification for their own increases. The universities point their own increases. The universities point out that their tuition cannot be lower than out that their tuition cannot be lower than that of a State University like UP, such that of a State University like UP, such include the Philippine School for Business include the Philippine School for Business Administration (PSBA) administration. Administration (PSBA) administration.

Furthermore, the cost of tuition in UP is Furthermore, the cost of tuition in UP is now nearly double the national average now nearly double the national average tuition set in private institutions. The new tuition set in private institutions. The new P1000/unit base tuition in UP even P1000/unit base tuition in UP even surpasses the average tuition in the surpasses the average tuition in the National Capital Region.National Capital Region.

Table 5.

Tuition throughout the years (2003-2007)

2003-04 2004-05 2005-06 2006-07

Average tuition per unit

National 284.28 316.60 353.03

NCR 585.48 648.89 722.41 863.71

Average rate of tuition increase

National 11.37% 11.52%

NCR 10.83% 11.33%

Source: CHED partial report on tuition increases 2005 as reported inhttp://www.mb.com.ph/issues/2005/06/19/MTNN2005061937328.html

And http://archive.inquirer.net/view.php?db=1&story_id=36247

Considering that there is an underlying Considering that there is an underlying notion that spending more leads to higher notion that spending more leads to higher quality of education, who should then bear quality of education, who should then bear the burden of the expenditures? Should UP the burden of the expenditures? Should UP follow the characteristic of private schools follow the characteristic of private schools which pass this spending to the students which pass this spending to the students and their families? Also, assuming the and their families? Also, assuming the premise that the cost of UP education is premise that the cost of UP education is higher than that set by private schools, higher than that set by private schools, should this level then be a standard should this level then be a standard expenditure level for other schools to expenditure level for other schools to come close to the same quality and level come close to the same quality and level of UP education? of UP education?

G.G. Depriving education to Depriving education to majority of the youthmajority of the youth

As the UP tuition scheme become level As the UP tuition scheme become level with the rates in private universities, with the rates in private universities, many freshmen might soon find many freshmen might soon find themselves dropping out of the themselves dropping out of the university due to financial constraints. university due to financial constraints. This has been the experience in many This has been the experience in many private higher educational institutions, private higher educational institutions, especially those that cater to the especially those that cater to the lower and middle income classeslower and middle income classes

Table 6.

Enrollment figures throughout the years (2000-2004)Institutional Type 2000-2001 2001-2002 2002-2003 2003-2004

Philippines 2,430,842 2,466,056 2,426,976 2,420,856

         

Public 771,162 808,321 815,595 829,181

SUCs 700,199 733,827 734,224 742,108

LUCs 61,954 67,749 74,382 80,037

CSIs 4,043 360 554 561

OGS* 4,966 6,385 6,435 6,475

Increase/(Decrease)   37,159 7,274 13,586

         

Private 1,659,680 1,657,735 1,611,381 1,591,675

Sectarian 527,753 500,753 505,068 492,438

Non-Sectarian 1,131,927 1,156,982 1,106,313 1,099,237

Increase/(Decrease)   (1,945) (46,354) (19,706)

Comparison of 2000 to 2004 enrollment figures

Public 58,019 7.52%

Private (68,005) -4.10%

Source: Higher Education Statistical Bulletin AY 2003-2004, CHED

Despite increased enrollment in public Despite increased enrollment in public tertiary institutions, these cannot be tertiary institutions, these cannot be able to absorb all of those who have able to absorb all of those who have dropped out from private schools.dropped out from private schools.

With an increase in tuition in the With an increase in tuition in the premier state university, and a premier state university, and a widespread tuition hike in the public widespread tuition hike in the public sector, it is prospective that sector, it is prospective that enrollment rates may drop for both enrollment rates may drop for both public and private educational public and private educational institutions.institutions.

A clearer context of the UP new tuition A clearer context of the UP new tuition scheme impact can be made with the scheme impact can be made with the consideration of the macro-economic consideration of the macro-economic conditions of the Filipino people in general. conditions of the Filipino people in general. By taking into account the daily cost of By taking into account the daily cost of living among various regions in the living among various regions in the country, it is possible to come up with a country, it is possible to come up with a national view of the annual cost of living. national view of the annual cost of living. Comparing national indicators such as the Comparing national indicators such as the cost of living estimates and the nominal cost of living estimates and the nominal wages, then superimposing it unto the wages, then superimposing it unto the STFAP mechanism, the interplay between STFAP mechanism, the interplay between these factors can root out the inadequacy these factors can root out the inadequacy of the STFAP to provide democratic access of the STFAP to provide democratic access to majority of the population.to majority of the population.

Table 7.

Comparison of Cost of Living Estimates and Nominal Wages

Region

 

Cost of Living Estimates   Nominal Wage

DailyAnnual

(daily rate x 365)Daily

Annual (daily rate x365)

NCR 786 286,890.00 300 109,500.00

CAR 744 271,560.00 235 85,775.00

I 731 266,815.00 225 82,125.00

II 645 235,425.00 218 79,570.00

III 665 242,725.00 278 101,470.00

IV-A 693 252,945.00 287 104,755.00

IV-B 693 252,945.00 230 83,950.00

V 666 243,090.00 220 80,300.00

VI 578 210,970.00 222 81,030.00

VII 751 274,115.00 241 87,965.00

VIII 494 180,310.00 220 80,300.00

IX 695 253,675.00 215 78,475.00

X 667 243,455.00 234 85,410.00

XI 653 238,345.00 240 87,600.00

XII 631 230,315.00 224.5 81,942.50

XIII N/A N/A 214 78,110.00

ARMM 1061 387,265.00 200 73,000.00

AVERAGE 697.06 254,427.81 235.50 85,957.50

Under this set-up, even minimum Under this set-up, even minimum wage earners will have to pay the old wage earners will have to pay the old level of maximum tuition at P300 per level of maximum tuition at P300 per unit, despite being unable to meet unit, despite being unable to meet the needed cost of living. the needed cost of living.

The current set-up of the STFAP The current set-up of the STFAP makes it extremely difficult for the makes it extremely difficult for the lower income brackets to enter and lower income brackets to enter and stay in the university.stay in the university.

Annual Cost of Living (national average) =

P254,427.81

Minimum wage earner (national average) =

P85,957.50

Figure 1.

The STFAP Bracketing System in lightof the National Cost of Living and Minimum Wage

Old New

1 0-45,000 0

E Up to P80,000 02 55,000 0

3 65,000 0

4 80,000 0 DP80, 001 to P135,

000P300/unit

5 130,000 0

CP135,001 to

P500,000P600/unit

6 170,000 P75/unit

7 210,000 P150/unit

8 250,000 P225/unit

9 250,001P300/unit

  

B P500,001 to P1M P1,000/unit

A Above P1M P1,500/unit

H.H. Continued opposition, Continued opposition, unified freshmen unified freshmen

perceptionperception A stratified random-sampling survey was A stratified random-sampling survey was

conducted by the OSR with UPD School of conducted by the OSR with UPD School of Statistics student volunteers among UPD Statistics student volunteers among UPD freshmen to present a scientific reading on freshmen to present a scientific reading on the perception and opinions of the current the perception and opinions of the current freshmen. freshmen. (See separate powerpoint on (See separate powerpoint on the freshmen perception survey).the freshmen perception survey).

A nation-wide formation opposing the A nation-wide formation opposing the tuition hike also now exists uniting the tuition hike also now exists uniting the ranks of freshmen, upperclassmen, ranks of freshmen, upperclassmen, parents and other sectors: the Students parents and other sectors: the Students and Parents Against the Rising Cost of UP and Parents Against the Rising Cost of UP education (SPARE).education (SPARE).

III. Tuition and STFAP III. Tuition and STFAP Policy CritiquePolicy Critique

The gravity of the impact of the tuition hike was The gravity of the impact of the tuition hike was already foreseen by the wide opposition of the UP already foreseen by the wide opposition of the UP community before it was approved by some members community before it was approved by some members of the BOR last year. The new tuition and STFAP of the BOR last year. The new tuition and STFAP policy was bound to have its ill effects, because from policy was bound to have its ill effects, because from its basic framework to its proposed methods, various its basic framework to its proposed methods, various points of contention have been laid to spell out its points of contention have been laid to spell out its ultimate defects.ultimate defects.

This part of the study scrutinizes the reports of the This part of the study scrutinizes the reports of the two ad hoc committees commissioned by the UP two ad hoc committees commissioned by the UP President. One is the de Dios report which aimed “To President. One is the de Dios report which aimed “To Review tuition and other fees,” the other is its Review tuition and other fees,” the other is its complimentary Atanacio report which aimed “To complimentary Atanacio report which aimed “To review the socialized tuition and financial assistance review the socialized tuition and financial assistance program”program”[1][1]..

[1][1] The de Dios committee consists of professors Emmanuel de Dios, Helen The de Dios committee consists of professors Emmanuel de Dios, Helen Valderrama, and Rene Felix. The Atanacio committee consists of professors Valderrama, and Rene Felix. The Atanacio committee consists of professors Edgardo Atanacio, Emmanuel Esguerra, and Rene FelixEdgardo Atanacio, Emmanuel Esguerra, and Rene Felix

A.A. On the basic postulates On the basic postulates on the concept of educationon the concept of education

The first section of the de Dios Report contains its basic The first section of the de Dios Report contains its basic premise on education:premise on education:

The hitherto prevalent notion that state-owned The hitherto prevalent notion that state-owned institutions are obliged to set uniformly low (even institutions are obliged to set uniformly low (even zero) tuition fees has gradually given way to zero) tuition fees has gradually given way to acceptance of the principle that students acceptance of the principle that students themselves – rather than the general taxpayer – themselves – rather than the general taxpayer – should pay for the cost of higher educationshould pay for the cost of higher education, , subject only to the equity-proviso that poor students who qualify should receive financial relief and assistance. This growing realisation has been prodded on by the stagnation of state-support given the government’s chronic budgetary difficulties; the spread notwithstanding of privately provided undergraduate education (though at times of uneven quality), thus reducing the social case for a public subsidy; and finally the University’s desire to reinforce its intellectual freedom through financial self-reliance. [emphasis mine][emphasis mine]

This paragraph is further elaborated This paragraph is further elaborated by a footnote particularly on the by a footnote particularly on the policy’s premise on tertiary policy’s premise on tertiary education. The footnote elaborates a education. The footnote elaborates a deeper basis for disregarding deeper basis for disregarding guarantee of access to education by guarantee of access to education by considering it as self-serving only.considering it as self-serving only.

A public subsidy to an activity is justified A public subsidy to an activity is justified based on likely positive externalities arising based on likely positive externalities arising from it, i.e., social benefits not apparent to from it, i.e., social benefits not apparent to the individual himself. It can be argued that the individual himself. It can be argued that virtually virtually all the benefits of an all the benefits of an undergraduate education are in fact undergraduate education are in fact appropriable by the private individual appropriable by the private individual himself, himself, who should be therefore be willing who should be therefore be willing to pay for its cost. Proof of this is people’s to pay for its cost. Proof of this is people’s demonstrated willingness to pay for private demonstrated willingness to pay for private college education (and indeed the college education (and indeed the Philippines already has an unusually high Philippines already has an unusually high ratio of college-finishers to total its labour-ratio of college-finishers to total its labour-force). force). [emphasis mine][emphasis mine]

This basic treatment to This basic treatment to undergraduate education is gravely undergraduate education is gravely erroneous in principle and in erroneous in principle and in implication. These postulates implication. These postulates completely deviate from regarding completely deviate from regarding education as a basic right, which is education as a basic right, which is supposed to be available and supposed to be available and attainable by all citizens.attainable by all citizens.

Such accessibility can only be Such accessibility can only be guaranteed if it is rightfully guaranteed if it is rightfully subsidized by the government using subsidized by the government using its collection from the public. The its collection from the public. The right to education and the national right to education and the national government’s responsibility of government’s responsibility of providing it is enshrined in Article 14, providing it is enshrined in Article 14, Section 1 of our national constitution:Section 1 of our national constitution:

The state shall protect and promote The state shall protect and promote the right of all citizens to quality the right of all citizens to quality education at all levels and shall take education at all levels and shall take appropriate steps to make such appropriate steps to make such education accessible to all.education accessible to all.

The UP charter itself elaborates The UP charter itself elaborates further this right by directing it further this right by directing it

to become beneficial to the to become beneficial to the society:society:

The University is an institution The University is an institution supported by the Filipino people: supported by the Filipino people: therefore, while it carries out the therefore, while it carries out the obligation to pursue and find abiding obligation to pursue and find abiding and universal principles, the University and universal principles, the University must relate its activities to the needs must relate its activities to the needs and aspirations of the people.and aspirations of the people.

Education should then be regarded Education should then be regarded as one of the basic and most as one of the basic and most significant investments of a significant investments of a government for the development of government for the development of its nation. The knowledge, skills its nation. The knowledge, skills training, and holistic development an training, and holistic development an individual may acquire through his individual may acquire through his education will have an inevitable education will have an inevitable impact to his society, as all impact to his society, as all individuals are default members of individuals are default members of communities. communities.

The de Dios report’s emphasis on the The de Dios report’s emphasis on the individual’s benefits of an individual’s benefits of an undergraduate education promotes a undergraduate education promotes a selfish mindset and course of action. selfish mindset and course of action. However, from the basic placement of However, from the basic placement of an individual in a society, his education an individual in a society, his education could have more benefits appropriable could have more benefits appropriable to his society if he is conscious of such to his society if he is conscious of such mandatory placement and the potential mandatory placement and the potential of utilizing that education as a positive of utilizing that education as a positive contributioncontribution

As a consequence of this de Dios As a consequence of this de Dios reports’ premise, education is deemed reports’ premise, education is deemed to be not necessarily accessible to to be not necessarily accessible to each and all, since it is not sought to each and all, since it is not sought to contribute to the general community. contribute to the general community. The policy implies that if an individual The policy implies that if an individual wants education, and since only he is wants education, and since only he is assured of benefits from it, then he assured of benefits from it, then he should pay for its entire “cost.” should pay for its entire “cost.”

In sum, the de Dios report alters In sum, the de Dios report alters completely the basic principles which completely the basic principles which should be rightfully upheld with regards should be rightfully upheld with regards to education: since it is an individual to education: since it is an individual capital only and is not recognized to capital only and is not recognized to contribute to society, it can be attainable contribute to society, it can be attainable by a citizen by choice and opportunity by a citizen by choice and opportunity only at a price and not through only at a price and not through government subsidy that is generated government subsidy that is generated from the people.from the people.

This twisted logic gives all the right This twisted logic gives all the right to increase payment demanded from to increase payment demanded from citizens for the “cost” of their citizens for the “cost” of their education, even in the premier state education, even in the premier state university.university.

B.B. On the “stagnation of On the “stagnation of state support”state support”

The de Dios report further asserts its The de Dios report further asserts its postulates on education by stating postulates on education by stating that “this growing realization has that “this growing realization has been prodded on by the stagnation been prodded on by the stagnation of state-support given the of state-support given the government’s chronic budgetary government’s chronic budgetary difficulties.” difficulties.”

Having contested the basic premise that Having contested the basic premise that education is not ought to be subsidized, education is not ought to be subsidized, the policy further makes two assertions: the policy further makes two assertions: (1) that the government is having (1) that the government is having “difficulties” in terms of budget “difficulties” in terms of budget allocation and (2) that the insufficient allocation and (2) that the insufficient state-support given to UP and the state-support given to UP and the education system merits a philosophical education system merits a philosophical shift in treating tertiary education as a shift in treating tertiary education as a basic right. basic right.

Data, however, dispute both assertions. Data, however, dispute both assertions. The national budget has continuously The national budget has continuously increased since 2001.increased since 2001.[1][1] Comparing Comparing the current level (2007) with that of the current level (2007) with that of fiscal year 2001, there is a nearly 60% fiscal year 2001, there is a nearly 60% increase. However, bulk of the increase. However, bulk of the increases is siphoned to just one item – increases is siphoned to just one item – the payment of debts.the payment of debts.

[1][1] The year 2001 is used as benchmark as this was The year 2001 is used as benchmark as this was the first year of office for Pres. Arroyo.the first year of office for Pres. Arroyo.

For the past six years, the amount For the past six years, the amount for debt servicing has continuously for debt servicing has continuously risen, nearly doubling the amount risen, nearly doubling the amount posted in 2001. Also, debt servicing posted in 2001. Also, debt servicing comprises nearly 1/4 to 1/3 of the comprises nearly 1/4 to 1/3 of the entire national budget every year.entire national budget every year.

Table 8.

Comparison of the national budget and debt servicing 2001-2007

Year National Budget

increase/(decrease

)

Debt Servicing(Interest

only)

Percent Allocation of

Debt Servicing

2001 707,093 -------- 174,834 24.73%

2002 742,022 34,929 185,861 25.05%

2003 825,113 83,091 226,408 27.44%

2004 861,629 36,516 271,531 31.51%

2005 947,554 85,925 299,807 31.64%

2006 1,044,827 97,273 310,104 29.68%

2007 1,126,339 81,512 318,185 28.25%

Source: General Appropriations Act and National Expenditures Program 2001-2003, 2005, 2007

Other portions of the national budget Other portions of the national budget which should take special scrutiny which should take special scrutiny are those allocations whose are those allocations whose specifications can be unavailable or specifications can be unavailable or uncertain. The dubious nature of uncertain. The dubious nature of these allocations could be a basis for these allocations could be a basis for demanding its re-channeling to the demanding its re-channeling to the university, which has clearly valid university, which has clearly valid needs for more subsidy. needs for more subsidy.

Table 9.

A rundown of various questionable items under the 2007 GAA and the 2008 proposed national budget (in thousand pesos)

Kilos Asenso Support Fund 2,010,000 under other economic services 2008

990,000 under other social services 2008

3,000,000 total

AFP modernization fund 5,000,000

E-government fund 1,000,000

NICA 2007 272,422

National unification fund 50,000present in 2004, 2005, 2007 GAA, and 2008 proposed budget

Exercise Balikatan 2007 42,740

Source: Proposed National Budget 2008

The supposed chronic budgetary The supposed chronic budgetary difficulties thus lie in the difficulties thus lie in the prioritization of finances, and not in prioritization of finances, and not in the fiscal position in itself.the fiscal position in itself.

Looking deeper into the various “state Looking deeper into the various “state support” acquired by the university from the support” acquired by the university from the national budget or from other forms of national budget or from other forms of appropriation, it can be seen that some appropriation, it can be seen that some shares of the university’s finances are not shares of the university’s finances are not properly allocated to the supposed basic properly allocated to the supposed basic priorities of the university. While the de Dios priorities of the university. While the de Dios report contends that state-support is report contends that state-support is stagnating due to the government’s chronic stagnating due to the government’s chronic budgetary difficulties, this insufficiency is budgetary difficulties, this insufficiency is further strengthened by the administration’s further strengthened by the administration’s faulty budget prioritization. The tuition faulty budget prioritization. The tuition increase actually does nothing to reverse increase actually does nothing to reverse this situation.this situation.

The Atanacio report reveals what The Atanacio report reveals what income the university projects income the university projects with the implementation of the with the implementation of the tuition hike:tuition hike: Depending upon the application rate Depending upon the application rate

assumed for STFAP, revenue from tuition assumed for STFAP, revenue from tuition and miscellaneous fees range from P85.1 and miscellaneous fees range from P85.1 million (40 percent application rate) to million (40 percent application rate) to P68.1 million (80 percent application rate)... P68.1 million (80 percent application rate)... Relative to the P40 million that the Relative to the P40 million that the University currently receives from tuition University currently receives from tuition and miscellaneous fees, this means an and miscellaneous fees, this means an additional P12-36 million in revenues for the additional P12-36 million in revenues for the University for one semester, or roughly P24-University for one semester, or roughly P24-72 million a year.72 million a year.

Various spendings of the university Various spendings of the university administration can actually patch up this administration can actually patch up this amount, totally disregarding the need for amount, totally disregarding the need for the tuition hike whatever false the tuition hike whatever false presumptions it is based upon. Examples of presumptions it is based upon. Examples of these are the P24 million Special these are the P24 million Special Endowment Fund to the Centennial Awards Endowment Fund to the Centennial Awards in UP Diliman and Manila; the P30 million in UP Diliman and Manila; the P30 million vaguely allocated for Centennial Projects; vaguely allocated for Centennial Projects; and the P20 million for the construction of a and the P20 million for the construction of a “medical museum.” “medical museum.”

This practice of the university This practice of the university administration reveals the policy’s administration reveals the policy’s true intention: which is to recognize, true intention: which is to recognize, espouse and furthermore reinforce espouse and furthermore reinforce the imposed “stagnation of state the imposed “stagnation of state support” to justify the proposed support” to justify the proposed tuition hike.tuition hike.

C.C. On UP’s comparison to On UP’s comparison to private schoolsprivate schools

Faulty postulates on the treatment of Faulty postulates on the treatment of education as a right, coupled by a education as a right, coupled by a preempted stagnation of state support preempted stagnation of state support have led to the use of the private sector have led to the use of the private sector situation as benchmark for the tuition situation as benchmark for the tuition increase. Thus, the supposedly major increase. Thus, the supposedly major impact of de-subsidizing students has impact of de-subsidizing students has been relegated to the background, in been relegated to the background, in favor of income-generation.favor of income-generation.

The De Dios Report pits UP to other The De Dios Report pits UP to other private universities to as an added private universities to as an added justification to its basic postulates on justification to its basic postulates on education that support the move to education that support the move to increase tuition. Section 2.1. of the increase tuition. Section 2.1. of the report states:report states:

A comparison of the University’s A comparison of the University’s applicable full tuition fees with those applicable full tuition fees with those charged by private institutions shows charged by private institutions shows a wide discrepancy. Relative to a wide discrepancy. Relative to leading private universities in the leading private universities in the national capital region, the national capital region, the University’s current tuition fee is University’s current tuition fee is anywhere from 1/3 (UST) to less than anywhere from 1/3 (UST) to less than 1/7 (ADMU) of those prevailing.1/7 (ADMU) of those prevailing.

The policy assumes that the higher the The policy assumes that the higher the tuition, the better the quality of tuition, the better the quality of education a student receives. Section education a student receives. Section 2.1 also states that private universities 2.1 also states that private universities “are thus better able to reflect the “are thus better able to reflect the costs of a certain standard of education costs of a certain standard of education in their fees.”in their fees.” The De Dios report takes The De Dios report takes off from the point to conclude that off from the point to conclude that there is “people’s demonstrated there is “people’s demonstrated willingness to pay for private college willingness to pay for private college education.”education.”

The treatment of UP as a private The treatment of UP as a private university is basically wrong for it is, university is basically wrong for it is, and should be, a state university. and should be, a state university. Again this is still based on the Again this is still based on the policy’s faulty presumptions on policy’s faulty presumptions on education, stating that the quality or education, stating that the quality or “certain standard of education” are “certain standard of education” are always attainable and measurable by always attainable and measurable by “costs”; and that these costs are not “costs”; and that these costs are not to be subsidized by the state.to be subsidized by the state.

Major questions and observations also Major questions and observations also arise from concrete experiences contrary arise from concrete experiences contrary to the conclusions stated in the de Dios to the conclusions stated in the de Dios report. If there is a people’s demonstrated report. If there is a people’s demonstrated willingness to pay for private college willingness to pay for private college education, then why is there a continuous education, then why is there a continuous decline in enrollment in private decline in enrollment in private universities? Moreover, it has been the universities? Moreover, it has been the public sector of tertiary education that has public sector of tertiary education that has continuously experienced increased continuously experienced increased enrollment.enrollment.[1][1]

[1][1] See table 6 of the section on impact presentation. See table 6 of the section on impact presentation.

Even the Family Income and Even the Family Income and Expenditures Survey from 1988 to Expenditures Survey from 1988 to 2003 clearly show that there is no 2003 clearly show that there is no significant increase in spending for significant increase in spending for the average Filipino family. In reality, the average Filipino family. In reality, education account for a very small education account for a very small percentage of the annual expenses percentage of the annual expenses of the family.of the family.

Table 10.

Education expenditures of the average family

Percent allocationTotal

Amount

1988 2.9% 943.11

1991 3% 1, 559.73

1994 3.7% 2, 503.46

1997 3.7% 3, 682.87

2000 4.2% 4, 998.00

2003 4% 4, 960.00

Source: FIES 1988-2003

The supposed willingness to pay for The supposed willingness to pay for private college education may be private college education may be derived not from the idea that derived not from the idea that education is a private good, but rather, education is a private good, but rather, by the fact that there are simply too by the fact that there are simply too many private universities as compared many private universities as compared to public tertiary ones. These private to public tertiary ones. These private universities can oftentimes advertise universities can oftentimes advertise more as viable choices over state more as viable choices over state universities.universities.

In using private school as In using private school as benchmarks, the de Dios and benchmarks, the de Dios and Atanacio reports fail to recognize the Atanacio reports fail to recognize the inherently opposite characteristics inherently opposite characteristics between private and public between private and public institutions.institutions.

The major difference between UP and The major difference between UP and renowned private universities lies in renowned private universities lies in the financier – in UP, it is the the financier – in UP, it is the primarily the government, whereas primarily the government, whereas in private universities such as UST, in private universities such as UST, DLSU and ADMU, this responsibility is DLSU and ADMU, this responsibility is entirely shouldered by the student.entirely shouldered by the student.

Furthemore, it is in the characteristic of Furthemore, it is in the characteristic of private schools that these were established private schools that these were established to further the ideals of a particular group to further the ideals of a particular group (whether it is a religious order or a business (whether it is a religious order or a business group or family), supply the owner’s needs, group or family), supply the owner’s needs, and/or generate profit. It thus rely primarily and/or generate profit. It thus rely primarily on an individual’s tuition to cover the full on an individual’s tuition to cover the full cost of instruction. Returns of investment, cost of instruction. Returns of investment, given by individuals who desire and have given by individuals who desire and have the capacity to pay for such cost, can never the capacity to pay for such cost, can never be lesser than the cost of instruction. be lesser than the cost of instruction.

On the other hand, public institutions are On the other hand, public institutions are supposedly created to supply the needs and supposedly created to supply the needs and foster the development of the entire society. foster the development of the entire society. As such, the brunt of the full cost of instruction As such, the brunt of the full cost of instruction is placed upon society itself, thru the is placed upon society itself, thru the governments’ collections from the society.governments’ collections from the society.

The policy thus lays its operating framework The policy thus lays its operating framework for UP: “the University’s desire to reinforce its for UP: “the University’s desire to reinforce its intellectual freedom through financial self-intellectual freedom through financial self-reliance.” This makes the university ultimately reliance.” This makes the university ultimately follow the private school framework, for it is follow the private school framework, for it is pushed to generate its own finances.pushed to generate its own finances.

With the tuition increase, UP is With the tuition increase, UP is actually conditioned to be a private actually conditioned to be a private university. A significant comparison university. A significant comparison to see is how the students of the to see is how the students of the university are de-subsidized as its university are de-subsidized as its tuition climbs closer to that of tuition climbs closer to that of “leading private universities.” “leading private universities.”

Table 11.

Comparison of government subsidybetween the old and new tuition scheme

Old Scheme (P300/unit)

New Scheme (P1000/unit)

Total cost of instruction P1,531/unit x 18 units = P27,558

Student payment for 18 unit load (per semester)

P6, 015 P21, 240

Government subsidy (per semester)

P21, 543 P6, 318

Daily government subsidy per student (150 academic days or 5 mos/sem)

P143.62 P42.12

D.D. On the “costing” and On the “costing” and socialization of tuitionsocialization of tuition

The de Dios and Atanacio reports mainly The de Dios and Atanacio reports mainly banks on inflation as the basis for the banks on inflation as the basis for the appropriated increase in tuition. Although appropriated increase in tuition. Although such computations may provide an accurate such computations may provide an accurate measurement of how the cost of education measurement of how the cost of education has increased, it does not depict a has increased, it does not depict a comprehensive picture to justify a massive comprehensive picture to justify a massive alteration in the tuition policy. But since the alteration in the tuition policy. But since the policy rests on wrong presumptions in the policy rests on wrong presumptions in the first place, inputting other important factors first place, inputting other important factors may have become secondary.may have become secondary.

First, an increase in the consumer price First, an increase in the consumer price index (CPI),on which the cost of education index (CPI),on which the cost of education was computed from, does not necessarily was computed from, does not necessarily mean that there was also an increase in the mean that there was also an increase in the average real income. Real income would average real income. Real income would have been a better indicator. The average have been a better indicator. The average income could be growing in nominal terms, income could be growing in nominal terms, but shrinking in real terms.but shrinking in real terms.

It may be true that prices have nearly It may be true that prices have nearly tripled since 1989, and nominal wage tripled since 1989, and nominal wage values have also increased by the same values have also increased by the same value. However, the real values of wages value. However, the real values of wages have eroded to only 29% of their 1989 have eroded to only 29% of their 1989 values. values.

Table 12.

Comparison of the Various Economic Indicators

Source: NSO compiled data 1989-present

1997 83.10 207.75 1.20 0.48 185.00 107.87% 88.80

1996 78.70 196.75 1.27 0.51 165.00 85.39% 83.82

1995 73.20 183.00 1.37 0.55 145.00 62.92% 79.46

1994 68.60 171.50 1.46 0.58 145.00 62.92% 84.68

1993 62.10 155.25 1.61 0.64 135.00 51.69% 86.94

1992 58.20 145.50 1.72 0.69 118.00 32.58% 81.18

1991 53.60 134.00 1.87 0.75 118.00 32.58% 88.26

1990 44.90 112.25 2.23 0.89 106.00 19.10% 94.55

1989 40.00 100.00 2.50 1.00 89.00  ------ 89.00

 Consumer Price

IndexPurchasing Power of

Peso Minimum Wages

year2000 as

base1989 as

base2000 as

base1989 as

basenominal amount

inc/(dec)

current value (1989 base)

 

Consumer Price Index

Purchasing Power of Peso Minimum Wages

year2000 as

base1989 as

base2000 as

base1989 as

basenominal amount

inc/(dec)

current value (1989 base)

2006 137.90 344.75 0.73 0.29 300.00 237.08% 87.60

2005 129.80 324.50 0.77 0.31 275.00 208.99% 84.70

2004 120.60 301.50 0.83 0.33 250.00 180.90% 83.00

2003 113.80 284.50 0.88 0.35 250.00 180.90% 88.00

2002 110.00 275.00 0.91 0.36 250.00 180.90% 91.00

2001 106.80 267.00 0.94 0.38 250.00 180.90% 94.00

2000 100.00 250.00 1.00 0.40 250.00 180.90% 100.00

1999 96.20 240.50 1.04 0.42 223.50 151.12% 92.98

1998 90.80 227.00 1.10 0.44 198.00 122.47% 87.12

Source: NSO compiled data 1989-present

Second, it is also important to consider what Second, it is also important to consider what the people could afford. Even in the current the people could afford. Even in the current set-up, there is already a large disparity set-up, there is already a large disparity between the living wage estimates and the between the living wage estimates and the nominal wage. Minimum wage earning nominal wage. Minimum wage earning families would need at least 2 breadwinners families would need at least 2 breadwinners just to be able to close this gap, yet they just to be able to close this gap, yet they would still qualify under Bracket C (or with a would still qualify under Bracket C (or with a base tuition of P600/unit). base tuition of P600/unit).

Table 13.

Nominal Minimum Wage vs. Family Living Wage Estimates,January-June 2007

Region Family Living Wage Estimates Nominal Wage Wage Gap

NCR 786.00 300.00 (436.00)

CAR 744.00 235.00 (509.00)

I 731.00 225.00 (506.00)

II 645.00 218.00 (427.00)

III 665.00 278.00 (387.00)

IV-A 693.00 287.00 (406.00)

IV-B 693.00 230.00 (463.00)

V 666.00 220.00 (446.00)

VI 578.00 222.00 (356.00)

VII 751.00 241.00 (510.00)

VIII 494.00 220.00 (274.00)

IX 695.00 215.00 (480.00)

X 667.00 234.00 (433.00)

XI 653.00 240.00 (413.00)

XII 631.00 224.50 (406.50)

XIII N/A 214.00 ---

ARMM 1,061.00 200.00 (861.00)

MAXIMUM ANNUAL FAMILY INCOME = P156,000(P300/breadwinner x 2 breadwinners/family x 5 days/week x 52 weeks/year)

Using the 2003 FIES and other past Using the 2003 FIES and other past FIES leads to the same conclusion – FIES leads to the same conclusion – only the higher income groups will only the higher income groups will have the capacity and leeway to have the capacity and leeway to spend enough for the new tuition spend enough for the new tuition scheme.scheme.

Nationwide 2003 data of FIES showed that Nationwide 2003 data of FIES showed that families in bracket D spent, on average, families in bracket D spent, on average, 59% of their total income on food (inflated 59% of their total income on food (inflated to the current year), and half of them spent to the current year), and half of them spent no more than P800 a year on education. no more than P800 a year on education. Minimum wagers exempt from income tax Minimum wagers exempt from income tax belong here. Families in Bracket C (who belong here. Families in Bracket C (who would be paying 600 pesos per unit) spent would be paying 600 pesos per unit) spent on average, close to 50% of their total on average, close to 50% of their total income on food (inflated to 2006), and half income on food (inflated to 2006), and half of them spent at most P2,200 a year on of them spent at most P2,200 a year on education.education.

It would thus be impossible for them to pay It would thus be impossible for them to pay the “discounted” tuition fee corresponding the “discounted” tuition fee corresponding to their bracket.to their bracket.

Researches made by the IBON Researches made by the IBON Foundation Inc. have shown that 65 Foundation Inc. have shown that 65 million Filipinos, or 80% of the million Filipinos, or 80% of the population, are living only with 96 pesos population, are living only with 96 pesos (2 dollars) everyday - around 35,040 (2 dollars) everyday - around 35,040 pesos annually. pesos annually.

Statistically speaking, the STFAP has Statistically speaking, the STFAP has been unable to attract the lower income been unable to attract the lower income students to enter and further stay in UP. students to enter and further stay in UP. Since it was originally introduced in Since it was originally introduced in 1989, the trend has been towards 1989, the trend has been towards increased Bracket 6-9 students, with increased Bracket 6-9 students, with majority belonging to the Bracket 9 majority belonging to the Bracket 9 population. population.

Table 14.

Breakdown of STFAP Recipients in UP Diliman, 1989-2005

Year 1 2 3 41-4

sum 5 5A 6 7 8 9 9A 9tot 9-May TOTAL %B1-B4 %B9

89-90 205 303 735 655 1898 1898  ND 1674 998 1018 ND ND 0 5588 7486 25.35% 0.00%

90-91 164 211 579 405 1359 1702 1348 1506 882 610 6331 12 6343 12391 13750 9.88% 46.13%

91-92 151 165 507 386 1209 1324 1219 1045 853 574 7259  ND 7259 12274 13483 8.97% 53.84%

92-93 200 206 469 432 1307 1460 1188 791 561 400 7585  ND 7585 11985 13292 9.83% 57.06%

93-94 166 19 481 518 1184 980 1121 960 598 437 8517 472 8989 13085 14269 8.30% 63.00%

94-95 122 151 331 547 1151 830 1592 998 617 420 7943 446 8389 12846 13997 8.22% 59.93%

95-96 105 143 263 505 1016 861 1538 1031 681 398 10701  ND 10701 15210 16226 6.26% 65.95%

96-97 91 86 203 432 812 728 1385 927 704 413 12243 285 12528 16685 17497 4.64% 71.60%

97-98 58 67 170 277 572 685 2047 989 694 488 11800 215 12015 16918 17490 3.27% 68.70%

98-99 63 50 156 298 567 533 2700 826 602 363 14328 279 14607 19631 20198 2.81% 72.32%

99-00 75 45 124 259 503 469  ND 702 536 370 17773  ND 17773 19850 20353 2.47% 87.32%

00-01 52 38 122 246 458 372 87 530 393 245 17415 298 17713 19340 19798 2.31% 89.47%

01-02 54 35 130 214 433 358 2285 494 321 221 13414 1716 15130 18809 19242 2.25% 78.63%

02-03 44 35 95 197 371 307 1479 355 205 131 14075 1716 15791 18268 18639 1.99% 84.72%

03-04 35 27 81 171 314 246  ND 252 158 82 16653  ND 16653 17391 17705 1.77% 94.06%

04-05 32 20 70 144 266 231 2644 230 120 46 12855 249 13104 16375 16641 1.60% 78.75%

Source: compiled data from various UP Diliman offices

The new STFAP bracketing was based primarily The new STFAP bracketing was based primarily on the income profile of the 2004 students in UP. on the income profile of the 2004 students in UP. This profiling is skewed altogether as the effect of This profiling is skewed altogether as the effect of the old STFAP on the income profile has already the old STFAP on the income profile has already been established. When the tuition was originally been established. When the tuition was originally raised to P300/unit in 1989, the higher income raised to P300/unit in 1989, the higher income brackets already gained the advantage in brackets already gained the advantage in entering and staying in the university. It is entering and staying in the university. It is therefore not surprising that majority of the therefore not surprising that majority of the deciles in the UP student population had average deciles in the UP student population had average incomes higher than those normally found in the incomes higher than those normally found in the general Filipino populace. general Filipino populace.

Further points of contention apply to the income Further points of contention apply to the income function determination and the process in itself of function determination and the process in itself of determining the bracket. Questions on income determining the bracket. Questions on income function are based upon the inconsistencies in function are based upon the inconsistencies in valuing assets owned by the students’ families. valuing assets owned by the students’ families. Former Faculty Regent Roland Simbulan points this Former Faculty Regent Roland Simbulan points this out in his critique on the new STFAP by laying as an out in his critique on the new STFAP by laying as an example the comparison between possessing ten example the comparison between possessing ten 1979 Toyota Corolla cars and single Toyota Altis 1979 Toyota Corolla cars and single Toyota Altis wherein they can be treated both as having equal wherein they can be treated both as having equal values. Although this may seem hypothetical to values. Although this may seem hypothetical to some, it is a reality as expressed in the different some, it is a reality as expressed in the different appeal letters forwarded to the various University appeal letters forwarded to the various University Committees on Scholarships and Financial Aid.Committees on Scholarships and Financial Aid.

Also, by using the highest determined Also, by using the highest determined bracket as the final bracket for the student, bracket as the final bracket for the student, the tendency to concentrate the students the tendency to concentrate the students towards either Bracket C or B is heightened. towards either Bracket C or B is heightened. In doing so, incoming students will In doing so, incoming students will effectively undergo a 100% tuition increase effectively undergo a 100% tuition increase in much the same way as what happened in in much the same way as what happened in 1989. Thus, it may further contribute to the 1989. Thus, it may further contribute to the direction that has been established by the direction that has been established by the 1989 tuition increase.1989 tuition increase.

E.E. On the faulty legitimacy On the faulty legitimacy of the implemented policyof the implemented policy

The de Dios and Atanacio reports The de Dios and Atanacio reports were approved despite the were approved despite the widespread and significant widespread and significant contentions among many sectors contentions among many sectors inside and outside UP.inside and outside UP.

The consultation process with the The consultation process with the sectors involved is greatly lacking. Even sectors involved is greatly lacking. Even though the de Dios report was available though the de Dios report was available on June 2006, consultation with on June 2006, consultation with students began only during late students began only during late October. Faculty consultations were October. Faculty consultations were also limited. The Atanacio report was also limited. The Atanacio report was only submitted to the UP President on only submitted to the UP President on November 2006, only a month before it November 2006, only a month before it was approved.was approved.

Another point of contention lies in the Another point of contention lies in the absence of the student and faculty absence of the student and faculty regents in the meeting for the regents in the meeting for the approval of the tuition policy. approval of the tuition policy. Although the reasons behind their Although the reasons behind their absence remain debatable, weight absence remain debatable, weight must be given to their absence as must be given to their absence as they represent the major stakeholders they represent the major stakeholders concerned in the matter. concerned in the matter.

Furthermore, there was minimal Furthermore, there was minimal consultation with the incoming consultation with the incoming freshmen students. as mentioned freshmen students. as mentioned previously with regards to the previously with regards to the perception survey.perception survey.

IV. RecommendationsIV. Recommendations

The presentation of the actual and The presentation of the actual and prospective impacts of the new prospective impacts of the new tuition and STFAP scheme, and the tuition and STFAP scheme, and the re-examination of the policy re-examination of the policy presumptions from which it is based, presumptions from which it is based, prove the incorrectness and injustice prove the incorrectness and injustice of enforcing such a scheme. of enforcing such a scheme.

IV. RecommendationsIV. Recommendations

Given this, the following recommendations Given this, the following recommendations are forwarded to the Board of Regents and are forwarded to the Board of Regents and the UP administration for their immediate the UP administration for their immediate action:action:

1.1. The university should reaffirm the The university should reaffirm the fundamental principles of fundamental principles of democratic democratic accessaccess and and widening participationwidening participation with with regards to UP education. All policies regards to UP education. All policies related to enrollment and tuition schemes related to enrollment and tuition schemes should be reckoned with these principles. should be reckoned with these principles.

2.2. The implementation of the new tuition The implementation of the new tuition and STFAP policy should be immediately and STFAP policy should be immediately suspended before the 2nd semester suspended before the 2nd semester enrollment of Academic Year 2007-2008. enrollment of Academic Year 2007-2008.

Refutations, counterproposals and other Refutations, counterproposals and other explanations in favor of its continuance explanations in favor of its continuance should be discussed to the constituents of should be discussed to the constituents of the university and the prospective the university and the prospective freshmen.freshmen.

3.3. It is recognized that sufficient It is recognized that sufficient annual government subsidies are annual government subsidies are fundamental for the university’s fundamental for the university’s development in the long-term. In this development in the long-term. In this light, the following are proposed:light, the following are proposed:

a.a. Official twice-a-semester UP Official twice-a-semester UP administration-student leaders administration-student leaders Congressional lobbying for a higher UP Congressional lobbying for a higher UP BudgetBudget

b.b. Proactive student participation in the Proactive student participation in the committees-in-charge of annual UP budget committees-in-charge of annual UP budget proposals. The participation of multi-sectoral proposals. The participation of multi-sectoral representatives can be granted in the representatives can be granted in the budget planning undertaken by the Office of budget planning undertaken by the Office of the Vice President for Planning and Finance, the Vice President for Planning and Finance, and the UP System Budget Officeand the UP System Budget Office

4.4. The current appropriations of the The current appropriations of the UP budget should also be reviewed, UP budget should also be reviewed, grounded on a framework of grounded on a framework of prioritizing the more essential needs prioritizing the more essential needs of the university and its constituents. of the university and its constituents. 5.5. There should also be a There should also be a comprehensive review of the comprehensive review of the financial health of the university, financial health of the university, wherein the following can be wherein the following can be enacted:enacted:

a.a. A comprehensive and independent A comprehensive and independent internal audit of the Universityinternal audit of the Universityb.b. Formation of a multi-sectoral Formation of a multi-sectoral University Committee to further University Committee to further review the internal efficiency of the review the internal efficiency of the university, without prejudice to the university, without prejudice to the principle of democratic access and principle of democratic access and widening participation, and the widening participation, and the employment security of academic employment security of academic and non-academic personneland non-academic personnel

c.c. Institutionalization of a Institutionalization of a Comprehensive Donations System Comprehensive Donations System where projects and programs where projects and programs available for pledges and donations available for pledges and donations are subject to a prioritization are subject to a prioritization measure for funding items of greater measure for funding items of greater importance to the objectives of the importance to the objectives of the University. University.

6.6. With regards to the decrease in With regards to the decrease in enrollment figures, particularly in less known enrollment figures, particularly in less known but very important courses of study and but very important courses of study and professions, the UP administration can fund professions, the UP administration can fund system-wide popularization campaigns of system-wide popularization campaigns of these courses through high school these courses through high school information drives and the popular media.information drives and the popular media.7.7. The guarantee of enrollment of all UPCAT The guarantee of enrollment of all UPCAT qualifiers must be thoroughly studied in qualifiers must be thoroughly studied in pursuance of greater democratic access for pursuance of greater democratic access for the underprivileged. Automatic entry of the underprivileged. Automatic entry of valedictorians, and/or other high-ranking valedictorians, and/or other high-ranking high school students can also be adopted.high school students can also be adopted.

8. 8. Without prejudice to the fundamental Without prejudice to the fundamental contentions on the new STFAP, which is contentions on the new STFAP, which is essentially the execution of the new tuition essentially the execution of the new tuition policy, the following are recommended:policy, the following are recommended:

a.a. Reassessment of the STFAP mechanism, Reassessment of the STFAP mechanism, which may include but is not limited to, which may include but is not limited to, the formula on determining the STFAP the formula on determining the STFAP brackets and the entire process of brackets and the entire process of application and inclusion in such brackets application and inclusion in such brackets b.b. Simplification of access to STFAP, where Simplification of access to STFAP, where a prima facie presumption of bracket a prima facie presumption of bracket access shall be given to students based on access shall be given to students based on the submitted Income Tax Return, pending the submitted Income Tax Return, pending the full assessment of their socio-the full assessment of their socio-economic profileeconomic profile