Local officials support GMA and seek help on LGU issues
March 2, 2001
NEWS RELEASE
Union of Local Authorities of the Philippines
League of Provinces (Governors'League) of the Philippines

Local officials led by governors and mayors today trooped to Malacanang and threw their full support for President Gloria Macapagal-Arroyo even as they sought her help in resolving raging issues affecting local government units particularly the internal revenue allotment (IRA).

About 50 governors joined ranking local executives, comprising the top echelon of the 1.2 million-strong Union of Local Authorities of the Philippines (ULAP) headed by Dagupan Mayor Al Fernandez, made a courtesy call on President Arroyo at Malacanang Heroes Hall in a dramatic show of unity behind her leadership.

Led by League of Provinces president and South Cotabato Gov. Larry de Pedro, top officials of the various ULAP leagues of local officials vowed to help implement the programs of the new administration including intensified tax collection to help lessen the national budget deficit.

During the meeting also participated in by Interior and Local Government Secretary Joey Lina and Budget Secretary Emilia Boncodin, ULAP leaders discussed with the President varied LGU-related issues and also called for a policy review of executive orders and memo circulars viewed as "contrary to the principles of local autonomy."

The ULAP officials specifically sought to revoke three executive orders issued by former President Estrada which, they insist, violate a recent Supreme Court ruling on the Pimentel vs. Aguirre case that upheld  local and fiscal autonomy as provided in the Constitution.

They said such orders-EO 189 witholding 20% of the LGUs' IRA as development fund prior to submission of the annual investment plan; EO 190 deducting from the IRA share the LGUs' payments to GSIS and other financial institutions; and EO 250 mandating LGUs' budget for anti-drugs campaigns-infringe on fiscal autonomy and sets restrictions on the use of LGUs' funds.

Also discussed with the President were the LGUs' woes on this year's IRA which is still at last year's level-from P131 billion for 2001 down to P121 billion for 2000-due to the non-enactment of the 2001 budget, with a reduction of P10 billion transferred to an "unprogrammed fund" and another P5 billion set aside for "local government service equalization fund" half of which has yet to be released.

The local officials expressed optimism that issues related to the IRA, considered the lifeline of financially-beleaguered LGUs especially the 5th and 6th class provinces, cities and municipalities, would be satisfactorily resolved by the new administration even as they expressed hope that a supplemental budget could be passed by Congress to realize the P131 billion due LGUs this year. #

For inquiries, pls. call Sandy Paredes or Mr. Angel Tugado at 717-1810; 5346789;5342860; 09179247960