TO:	The Minister of Education, Culture and Sports, The Minister of Finance The Minister of Local Government The Minister of the Budget The Chairman, Civil Service Commission The Executive Director, National Tax Research
		Center
	The Vice Governor, Metropolitan Manila
		Commission

WHEREAS, existing legislation authorizes local government units to augment the compensation of elementary school teachers whose basic pay, allowance and benefits are paid by the national government;

WHEREAS, the compensation supplements extended by local government units vary with their capability to pay, leading to invidious comparisons in cases such as when a poor city adjoins a rich city;

NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue of the powers vested in me by haw, do hereby Order and Instruct:

1. A Committee is hereby created, headed by the Minister of Education, Culture and Sports and with member consisting of the Ministers of Local Government, of Finance and of the Budget,  the Chairman of the Civil Service Commission, the Executive Director of the National Tax Research Center, and the Vice Governor of Metropolitan Manila, to look into and propose remedial, legislation or Executive issuances, as may be appropriate, to rationalize policy and practice in compensation supplements paid by local government units to education personnel;
   
   
2. Among others, the Committee shall look into the following possibilities:
   
   
   1. The establishment of a coordinated compensation supplement program within a Region or other appropriate grouping of local government units, undertaken possibly by Regional Development Council decision;
      
      
   2. The inclusion of education support personnel among the beneficiaries of local government compensation supplements when warranted by available funds;
      
      
   3. The channeling from wealthy to poorer provinces, cities or municipalities, of excess Special Education Fund revenues in those cases where such excess is clearly established;
      
      
   4. A review of existing guidelines governing the utilization of Special Education Fund resources, so as to achieve a balance among the various priority activities that can be financed out of the said Fund.
      
      
3. The Committee shall submit its report and recommendations before the end of the year.

Done, in the City of Manila this 19th day of September, nineteen hundred and eighty-five.