Bureau of Local Government Finance Opinion

January 11, 2016 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Hon. Damian G. Mercado Congressman Lone District Southern Leyte Rm. 401, Ramon V. Mitra Bldg., Batasan Pambansa Complex, Constitution Hills, Quezon City Dear Congressman Mercado : This has reference to your letter dated December 1, 2015, seeking reconsideration of the opinion rendered by this Bureau dated October 5, 2015, pertaining to the request for income re-classification of Maasin City, Southern Leyte, pertinent portion of which states: "We would like to inform you that the DOF should have undertaken in 2012 another general income re-classification using the BLGF-proposed new income ranges that were based on FY2008 to FY2012 average annual regular income of LGUs. However, the proposal was held in abeyance in light of Department of Justice (DOJ) Opinion No. 68 s. 2012, dated 21 September 2012, that, in regard to EO No. 249, the authority of the Secretary of Finance 'with respect to revising or modifying such schedule of income or "income ranges" only extends to recommending such appropriate changes or revisions to the proper authority." The DOJ further opined that "the proper authority to modify, revise or amend the applicable provisions of law is the Philippine legislature, namely, the two houses of Congress". As such, a congressional amendment to the EO is therefore necessary to grant a clear and unequivocal authority to the Secretary of Finance to determine and set the appropriate changes or revisions to the income brackets every income re-classification period." "xxx xxx xxx" "In view of the foregoing, it is the considered position of this Bureau that we have no legal basis to act favorably on the request of the City Council of Maasin City, Southern Leyte." "We therefore wish to take this opportunity to request your support on the aforementioned DOF legislative proposal pending in the 16th Congress." Much to this Bureau's desire to be of assistance to the much needed support for the City of Maasin, Southern Leyte, we cannot, as of the moment, act on the same for lack of legal basis. HEITAD It is your representation however that instead of pursuing with the congressional action to amend Executive Order No. 249, which would entail a longer process, Senate Bill No. 2664 and House Bill No. 5656 could be adopted as a draft executive order to be sent to the Office of the President for signature, thus amending EO No. 249. Aforementioned proposal is taken into consideration. The Bureau is looking into the matter and is exploring all the possible means which includes the preparation of a draft Executive Order to be submitted to the President. However, pending approval of any of the said proposed measures, this Bureau is legally constrained to act on the request of the City Council of Maasin, Southern Leyte. Premises considered, this Bureau is reiterating its stand as contained under its letter dated October 5, 2015. Very truly yours, (SGD.) JOCELYN T. PENDON OIC-Executive Director