SUCs Grapple with Structural Funding Inequities Under Free Tertiary Education Law
A critical policy issue emerged during the Cebu Technological University FY 2025 Fourth-Quarter Full-Time Delivery Unit Performance Review and the FY 2026 Performance Planning and Commitment Meeting, held from January 14 to 18, 2026. The discussions unveiled a long-standing systemic problem: structural inequities that bind State Universities and Colleges (SUCs) due to a gap between their multiple mandates and the persistently limited funding under the Free Tertiary Education Law.
Uniform Subsidies Fail to Address Cost Disparities Across Disciplines
For many years, SUCs have been forced to operate under a uniform subsidy of approximately P8,000 per student per semester, regardless of the program undertaken. This one-size-fits-all allocation does not account for the real cost differences among various disciplines. Courses and services such as Engineering, Industrial Technology, Education, Research, Extension, Production, Applied Sciences, and Mathematics require substantial and ongoing investments in laboratories, facilities, equipment, consumables, maintenance, and regulatory compliance. These expenses are simply not covered by the current funding approach, inevitably affecting the quality of education provided.
Contrast with TESDA's Needs-Based Funding Model
The disparity becomes evident when comparing SUCs to the Technical Education and Skills Development Authority (TESDA), another government-funded agency. TESDA funds skills training on a per-student, per-program basis, where the budget is prepared according to the actual needs of training. This includes tools, materials, equipment depreciation, and trainer fees. As a result, their targets are more realistic, and their outcomes are clearer. In contrast, SUCs are expected to fulfill four major mandates—instruction, research, extension, and innovation—yet are constrained by a rigid and insufficient subsidy system.
Additional Burdens from Civil Service Commission Mandates
Compounding the difficulties are new mandates from the Civil Service Commission affecting personnel management in SUCs. As discussed in the CTU performance review, hiring non-teaching personnel must now go through agency providers. Under this system, salaries are set at P24,000 per month, including benefits and gratuity. While the aim is to protect employee welfare and professionalize services, this unavoidably increases operational costs for SUCs—without a corresponding increase in funding from Free Tertiary Education allocations.
Challenges for Contract of Service Teaching Personnel
Another pressing issue is the situation of teaching personnel under Contract of Service arrangements. Despite rising living costs and increased teaching responsibilities, the per-hour pay has remained nearly unchanged for many years. There is a clear need to revise this to ensure fair compensation, maintain teaching quality, and prevent the continuous loss of skilled and experienced educators to higher-paying sectors.
Call for Legislative Reform to Ensure Equity
Dr. Romeo C. Lepiten, Campus Director of CTU Barili, emphasized that SUCs must meet higher performance and compliance standards while operating under funding that is no longer suitable for current policies and conditions. He pointed out that unless Congress and the Senate amend the Free Higher Education Law—particularly by adopting funding based on per student, per semester, and per program—SUCs like CTU will remain at a disadvantage, struggling to deliver quality education amidst financial constraints.
