NE-DAY

1. NE-DAY WORKSHOP ISSUES, CHALLENGES AND OPPORTUNITIES By Dr. Vincent K. Fabella

2. Outline of Talk • Workshop Objectives • Status of K12 • Impact of K12 on private education • Current remedies being considered • Next Actions: Results of the October 26, 2012 ADB-DepEd Meeting

3. Objectives of the One-day Workshop • Get the participants to understand PPP education models for Senior High School: ESC, vouchers, and concessions. • Identify a range of costs/subsidies per student, as requested by the DepEd. • Get to a short list of key factors and risk factors acceptable to the participants, to help DepEd develop a PPP model in more detail.   

4. Status of K+12

5. Status of K to12 • K + 12 Bill on “Enhanced Basic Education Act of 2012”(House Bill 6643). • Bill approved on second reading last October…just last November 19 it was approved for third and final reading. • The government is ready to implement the K+12 program … DepED Secretary assurance. • DepEd continues to address the lingering problems of shortage in classrooms, qualified teachers, sanitation facilities, textbooks, and school seats.

6. UPDATE FROM K TO12 STEERING COMMITTEE • Committee is composed of members from the DepED, CHED and TESDA • Responsible for gathering necessary information that will supplement the queries on th proposed model opted to use “K to 12” which highlights not only the additional years in basic education but the design of the curriculum as well.

7. Impact of K + 12 on Private Education

8. Issues, Challenges and Opportunities for Private Education • Resource constraint issues for DepEd –Need for DepEd to meet classroom, building and teacher development demands • Shortages in Qualified teachers –These are only for Grades 1-10 –These needs geometrically increase with introduction of Grades 11 and 12 • Sustainability Issues for Some Basic Education Schools –Private HS at capacity need to build to handle grades 11 and 12 (SHS) –Many HS don’t have finances or space to put up additional classrooms and resources • Opportunities for Others –Build for 11 and 12; offer its services to others –Expand mission, through reaching out to more

9. K+12 Financial Impact • As the number of enrollees are expected to decline by 2016, the NPV of losses for private schools and colleges nationwide amounting to P158 billion • Lost cohorts during transition • Smaller incoming cohorts (reduction of 16%) due to grades 11 and 12)

10. K+12 Employment Impact • The potential displacement of college professors and tech-voc instructors during the introduction of senior high school from 2016 onwards.

11. Current Remedies Being Considered

12. 1. Move Into Voc-Tech • Voc-Tech expansion • HEIs considering expanding into voc-tech • HS graduates at 18 may opt to forego college, look into short-term training • Market seen to grow?

14. 3. Improve Student Financing • Expanding ESC • Introducing a national student loan program • student loans in the Philippines at close to zero penetration, compared to average of 38% in ASEAN countries • 2 bills now in the Senate (Angara) and the House (Romulo)

15. 4. PPPs in Education PUBLIC PRIVATE NEED classrooms, teachers and expertise for Grades 11 and 12 PPP HAVE classrooms, teachers and expertise for Grades 11 and 12

16. 4. PPPs in Education (Con’t) • • DepEd in principle approves PPPs in education (K-12 Subcommittee on Transition looking into PPPs) • PEAC Board Resolution No. Series of 2011 approved the creation of a FAPE Education PPP steering team to provide needed services and collaborate with DepED’s PPP technical working groups

17. Proposed Timeframe

18. Next Steps

19. October 26 DepEd Roundtable • DepEd with assistance from ADB is now developing a PPP policy for education. Among the key activities are • Design an expanded ESC for Senior High School • Review PPP models for SHS • ESC • Vouchers • Concessions • Examine price at which private sector will participate • Examine capacity of private sector to absorb high school students

20. PPPs in Education - Ongoing • Next Actions: • Consult with private schools and come up with price and capacity estimates

21. Thank You

22. EXTRA SLIDES

23. Number of schools • 38,351 public elementary schools, • 7,268 high schools Participation rate • 91 percent for elementary. • 62 percent for high school How many senior high school students or enrollees is the DepEd expecting by 2016? Thirty-two percent of 1.1 million would be the yearly average.

25. OPPORTUNITIES FOR PPP EXPANSION • GASTPE / Expanded ESC • K to 12 Senior High School PPP Schemes

26. ESC Expansion

27. 2013 GASTPE Budget • Php 7.0 billion in 2013 vsPhp 6.3 billion in 2012 • 2013 budget sufficient for 1 million grantees. Source: Usec Varela’s PPt Presentation: “Enriching PPP in Education”

28. Issues in the GASTPE Expansion • Demand vs. Supply Issues • Distribution among schools • Appropriate grantee selection process • Will it increase enrollment in private schools? Source: Usec Varela’s PPt Presentation: “Enriching PPP in Education”

29. Government Objectives in Expanding GASTPE • Decongest public schools • Minimize cost of expanding education services • Improve quality of education for beneficiaries • Improve quality of education for non-beneficiaries by improving conditions in the public schools. Source: Usec Varela’s PPt Presentation: “Enriching PPP in Education”

30. Wrong Grantee Selection Will Not Help Private Schools • Inappropriate grantees are those students who would have enrolled in a private school, even without government subsidy. • If subsidy is given to these students, the enrollment in private schools will not increase. • The revenue to the school will remain the same. Gov’t subsidy will be enjoyed by private households. Source: Usec Varela’s PPt Presentation: “Enriching PPP in Education”

31. if the Committee or the Department for that matter, has the formula as to how the senior high schools shall be allocated?

32. those who can go to college under the new scheme must be a graduate of senior high school. • paanongayoniyongmgaibangbarangayna may junior high school, walang senior high school? So, the problem of access is there. We will be back to square one, Mr. Speaker. So, my first question is, what is the formula in determining—in this high school, mayroontayong senior,

33. The DepEd will also be providing the voucher system and the service contracting to augment the deficiency of present existing facilities in areas that cannot provide, as you say, senior high school. • senior high schools will be built in catchment areas so that graduates will have somewhere to go for the particular example that you have mentioned.

34. The second question is, if you have a voucher, is the amount involved uniform? I mean, if not throughout the Philippines, at least, in specific localities or provinces. Kung uniform, angibigko pong sabihin kung iyongisang voucher, for example, ang cost is P15,000 yearly, itopo ba ay P15,000 sa lahat? • REP. OCAMPO. Mr. Speaker, at the moment, the Government Assistance to Students and Teachers in Private Education (GASTPE) costs the government P10,000 for the National Capital Region (NCR) and P6,500 for outside of Metro Manila. In the discussion regarding this matter, we were assured that the DepEd is studying the increase of the GASTPE subsidy for our students, in fact, to P22,000 per student in 2016 which is more than half of what they are providing for at the moment for this GASTPE subsidy.

35. how is this public-privatepartnership program being done? that the public-private partnership program of the government will help solve the shortage of classrooms in our basic educational system. My question is: • how is this PPP modality being done and implemented? • How is the distribution of the school buildings being done—will it be concentrated in the urban centers like Metro Manila and others to the prejudice of the rural areas which need more of these classrooms as those in Metro Manila? • The urban centers are being provided with assistance by the local government units which have some resources/some remittances to augment the funding of the Department of Education for the basic educational requirements of our students.

36. Currently, the DepEd is mapping in the whole country through the regional directors, where is the acute need for classrooms. I would like to reiterate that by 2013, we would have built the 30,000 classrooms. The question of the Gentleman from Bohol is: What are the criteria in choosing where to build the new classrooms? It is entirely on a need basis. The DepEd will build the classrooms where there is a need. • How is the PPP being done? What is the mode of repayment, et cetera?

37. PPP, the initial areas that were chosen were Regions I, IV-A and III on a pilot basis….. P15 billion …. mode of repayment…10-year period…rate of interest • The program of the PPP is to build, lease and transfer. From the very start, it was already determined—what the cost would be to build these classrooms. Therefore, there will not be any fluctuation on the interest because the terms have been determined and agreed upon from the very start. • The intention of the Department is to pay, to regularize one-third of the 22,000 kindergarten teachers by 2013 and, progressively, until we would have regularized the whole 22,000.

38. The DepEd is ready and that is the reason we implemented the policy that for school year 2012 to 2013, Grade I and Grade VII will be using the new curriculum. By 2016, with the amount of P42.3 billion, increasing to P50 billion plus for 2017, projecting a high growth scenario and like I have earlier mentioned, we are going to address all the shortages in classrooms, teachers, seats, books and sanitation facilities before 2016. • all gaps will be addressed by 2014. The creative programs of the DepEd in enlisting the support of all stakeholders in the Adopt-A-School program, the private sector, the LGU funds, the Special Education Fund from the LGU, the donor communities, the donor institutions and financial institutions, will help us address these gaps.

39. Absorptive capacity of the DepEd has been questioned in terms of building the classrooms, providing the teachers and preparing the materials for the K to 12 Program. • DepED’s commitment to bridge the gap in classrooms, teachers, seats, textbooks and sanitation facilities by 2014. • We started with the implementation of the PPP that commits P15 billion over a period of 10 years to deliver 9,000 classrooms. • Question of readiness and preparedness of DepED in collaboration with stakeholders in implementing K to 12. • absorptive capacity of the system

40. Number of schools • 38,351 public elementary schools, • 7,268 high schools Participation rate • 91 percent for elementary. • 62 percent for high school • how many senior high school students or enrollees is the DepEd expecting by 2016? Thirty-two percent of 1.1 million would be the yearly average.

41. CHALLENGES AND OPPORTUNITIES(PESA) • In this regard, the education system needs to have sufficient classrooms ready at the opening of school year 2011-2012 to pave the way for the universalization of kindergarten. • DepEd plans to pass on K+12 smoothly into the next administration in2016 when the first batch of senior students enroll in senior high or Grades 11 to 12.Through this program, DepEd will have to overhaul the curriculum and solve the shortages of teachers, classrooms, textbooks, and other problems. • While the government is convinced that this is a necessary and a long-overdue step, notwithstanding its obstacles mainly in the financing of education, some quarters believes otherwise. Hence, there is a need for a continuous monitoring and evaluation of the program as it progresses and casts the net as wide as possible in consulting key sectors as it is the biggest education reform that will be undertaken.

42. School-community partnerships on the ground have shown the way forward in making schools perform better. • Government and the private sector must ensure that these islands of excellence become the norm for all by scaling up these successful initiatives.

43. Public-Private Partnerships or PPPs must indeed become part of our education reform effort. • As PBEd and others stakeholders of private education has done, FAPE also commits to facilitating, encouraging, initiating and seeing through such partnerships.

44. EXTRA SLIDES

45. OPPORTUNITIES FOR PPP EXPANSION • GASTPE / Expanded ESC • K to 12 Senior High School PPP Schemes

46. ESC Expansion

47. ESC Expansion

48. 2013 GASTPE Budget • Php 7.0 billion in 2013 vsPhp 6.3 billion in 2012 • 2013 budget sufficient for 1 million grantees. Source: Usec Varela’s PPt Presentation: “Enriching PPP in Education”

49. Issues in the GASTPE Expansion • Demand vs. Supply Issues • Distribution among schools • Appropriate grantee selection process • Will it increase enrollment in private schools? Source: Usec Varela’s PPt Presentation: “Enriching PPP in Education”

50. Government Objectives in Expanding GASTPE • Decongest public schools • Minimize cost of expanding education services • Improve quality of education for beneficiaries • Improve quality of education for non-beneficiaries by improving conditions in the public schools. Source: Usec Varela’s PPt Presentation: “Enriching PPP in Education”