ABSTRACT
REDOBLADO, MARIETTA R.” PUBLIC EXPENDITURE MANAGEMENT CAPABILITIES OF STAE UNIVERSITIES ANC COLLEGES IN REGION V” (Unpublished master’s Thesis, Aquinas University, Legazpi City, March 2002)
This research is a study that focuses on the capabilities of State Universities and College in Region V on Public Expenditure management (PEM) reforms. The implementation of Public Expenditure management reforms took effects five years ago among all national government agencies including state universities and college in the Philippines. The extent of Public Expenditures management reform policy implementation can only be gauged or measured in the light of the capabilities of the agencies, and this particular study is intended for state universities and colleges. Such Public Expenditures management reform capabilities focus on the state universities and college particularly on the three outcome levels namely, (a) fiscal discipline, (b) allocative efficiency ,and 9) operational efficiency.

Statement of the Problem

This study determine the financial profile of state universities and colleges in Region V, the Public Expenditure management Capabilities of these state universities and college in terms of the three outcome levels,i.e Fiscal Discipline, Allocative Efficiency and Operational Efficiency, the significant relationship, among the state universities and colleges capabilities on Public Expenditure management performance in terms of the three outcome as perceived by the respondents, the problems encountered in the implementation of Public Expenditure management and the capability-building program(s) on Public Expenditure management of the State Universities and College that can be introduced to assure quality focuses performance outcome.

A thorough review of related literature and studies, write-ups, articles and publications gave the researcher the necessary focus and direction to undertake the study anchored on the theory of institution and the theory of the budget.

The study proceeded by employing descriptive-documentary method process to determine the three outcome levels, viz: fiscal discipline, allocative efficiency and operational efficiency. The researcher theorized that a well-performing government institution requires a continuous quality-focused performance by re-inventing (its) Public Expenditures management process. Institutional capabilities of state universities and college on Public Expenditure management outcomes will assure sustainability of resource performance despite their scarcity because financial predictability under a medium-term expenditure framework is a major strategic planning component.
A structures survey questionnaire was formulated and was used in gathering the data from the state universities and colleges in Region V. Six State Universities and College with 74 respondents were the subjects of this study. Conduct of a pre-test survey was undertaken in two out of the eight state universities and colleges in the region. Weighted mean, percentage rating and Pearson’s r based on a .05 significant level were the statistical tools used in this study.

Findings
This study found out that there was a decrease in the general fund appropriators of state universities and college, as reflected in the General Appropriations Act for Calendar Years 1998, 1999 and 2000. However, automatic representing the Retirement and Life Insurance Premium ( RLIP) which is a mandatory requirement increased by virtues of Republic Act No.8291 of the new Government Service Insurance Act of 1997. Reduced obligations in 1998 of state universities and colleges were due to the imposition of reserves under Administrative Order No.372 dated December 27, 1997, mandating economy measures for all government agencies including that of state universities and colleges.

This study also revealed that generally, all state universities and colleges were rated capable along fiscal discipline, allocative and operational efficiency except SUCD, which was rated moderately capable along allocative and operational efficiency and SUC along fiscal discipline.

This study also found out that there is a significant relationship in the perception on Public Expenditure Management among the state universities and college in Region V. The state universities and college in Region V have encountered problems in the implementation of Public Expenditure management in their programs among the state universities and college in region V to assure quality focused performance outcomes.

Conclusions

Based on the findings of the study, it was concluded that the decrease in appropriations for state universities and college for the 3-year period is due to the enactment of Republic Act No.8292, otherwise known as the “Higher Modernization Act of 1997,”mandating state universities and colleges to generate funds which shall constitute as special trust funds that can be earmarked for the operating expenses of said state universities and colleges.”

The researcher also concluded in this study that there is still much room for improvement on Public Expenditure management reforms among the state universities and colleges in the region despite their commonalities on curricular offerings. It also concluded that the state universities and colleges vary in their knowledge and practices on Public Expenditure management despite their commonalities on curricular offerings. The state universities and college had encountered problems on the implementation of Public Expenditures management and that these problems vary depending on their institutional goals and fiscal resources. The study also concluded that the implementation of Public Expenditure management along the three outcome levels needs more teeth.

Recommendations

From the conclusions drawn, the study recommends that states universities and college, through the Commission on Higher Education should come up with specific guidelines an alternative sources of funding including the optimum utilization of resources generated from income generating projects as mandates under Republic Act No. 8292, in order to sustain programs/projects and activities which cannot be sourced from the national coffers. The study also recommended that State Universities and Colleges should strive to attain optimum capability levels directed towards quality education by sharing their learning experiences. Intra and Inter-relations among state universities and college not only in the region but also with the rest of the one hundred two (102) state universities and colleges nationwide will enhance the capabilities on Public Expenditures management along fiscal discipline, allocative efficiency and operational efficiency.

This study also recommends that states universities and colleges should exert necessary efforts to minimize if not totally eradicate related problems. Bottlenecks once identified and addressed will enhance Public Expenditure management implementation strategies.

Recommendation is further offered for the government, through the Department of Budget and Management as lead agency on Public Expenditure management to set up a resource center to intensify implementation on Public Expenditure management reforms among state universities and college and other national government agencies for that matter. Planning activities should help identify the agency key results areas and ensure that their strengths, weaknesses, opportunities and threats are clearly identified and dealt with based on their institutional goals and resources.

Areas for Further Study

The areas for further study such as a replication of the study among other state universities and college in other regions, a training design to monitor Public Expenditure management implementation among state universities and colleges , a study on Public expenditure management constraints and study on alternative resources generations activities for state universities and colleges other than tuition fees will help the government safeguard the coffers and take a leap towards economic recovery.