WHEREAS, it is the declared policy of the National government to give priority to education, science and technology, arts, culture and sports to foster patriotism and nationalism, accelerate social progress, and promote total human liberation and development.

WHEREAS, the State recognizes the vital role of the youth in nation building and the need to develop physical, moral, spiritual, intellectual and social well-being;

WHEREAS, the State is mandated to establish and maintain a system of free education in the elementary and high school levels;

WHEREAS, the State realizes the need to effectively implement this educational reform at the earliest possible time.

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order the following:

SECTION 1. Nationalization. - All public secondary school teachers are hereby placed under the administrative supervision and control of the Department of Education, Culture and Sports. Henceforth, basic salaries and cost of living allowances of said teachers shall be paid by the national government.

SECTION 2. Appointment of Teachers. - The appointment of public secondary school teachers shall henceforth be made in accordance with the rules, regulations and standards applicable to national government employee.

SECTION 3. Compensation. - The salaries and cost of living allowances of nationalized public secondary school teachers shall be paid in accordance with the rates prescribed for their national counterparts; PROVIDED THAT, in case of nationalized public secondary school teachers whose basic salaries and cost of living allowances are in excess of those prescribed for their national counterparts, the excess shall continue to be paid by their respective local governments.

SECTION 4. Source and Administration of Fund. - The amount necessary to pay the salaries and COLA of teachers covered under this Order shall be taken from the Special Education Fund provided for under Republic Act No. 5447, as amended, the National Aid to Local Schools authorized under Executive Order No. 87, and such other funds as may be determined by the Department of Budget and Management.

The amount herein authorized shall be administered by the Department of Education, Culture and Sports.

SECTION 5. Special Education Fund. - Starting July 1, 1987, 80 percent of all collections accruing to the Special Education Fund shall be remitted immediately to the National Treasury. In case of failure of the local government units to remit the amount as herein prescribed, the Department of Budget and Management shall withhold a corresponding amount from the apportionment of the share of local government units in national internal revenue.

SECTION 6. Supplemental Appropriation. - To carry out the provisions of this Order, the amount of SIX HUNDRED MILLION PESOS (P600,000,000.00) is hereby appropriated out of the sources mentioned in Section 4 above. Thereafter, the necessary amount shall be provided for in the General Appropriations Act.

SECTION 7. Implementing Rules and Regulations. - The Department of Budget and Management and the Department of Education, Culture and Sports shall jointly issue the necessary rules and regulations to implement this Order.

SECTION 8. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 10th day of June, in the year of Our Lord, nineteen hundred and eighty-seven.


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary