The Consultative Committee should come up with a specific provision in the proposed federal constitution that would expressly mandate that existing local government units will not be abolished once a federal form of government is installed.
Along with this, it must also mandate that the Internal Revenue Allocation of local government units will in no way be reduced or diminished.
“These should be expressed in black and white to allay the fears of local government officials that federalism will lead to the abolition of some LGUs,” said Architect Florencio “Chito” Gavino, consultant of the consultant of the Davao-based Kilos Pederal sa Pagbabago and one of the original advocates for federalism.
Quoting former Senator Joey D. Lina, Gavino said the proposed federal constitution is silent on many issues affecting LGUs.
He said the proposed 18 federal regions proposed by ConCom is certain to led to the abolition of provinces “to rationalize the governmental structure due to the unintended negative consequence of bloated bureaucracy.”
“This is the major concern of LGU officials and explains their deafening silence on federalism,” he said.
He said that to allay the fears of LGUs, the Con-Com must dialogue with the League of Governors to address their concerns and anxieties about the inadequate provisions of the federal constitution.
He said among the concerns that should be addressed is the role of LGUs in the collection of taxes, licenses and fees as pointed out by Lina.
The Concom should explain “how shall collected taxes and duties be appropriated among LGUs in the regions.”
Lina has proposed that the draft charter ought to have given emphasis on “crucial aspects pertaining to LGUs which can greatly help in the pursuit of federalism.”
Gavino said the other criticism is that while the 1991 Local Government Code provided for a 60-40 (national government-local government) allocation of IRA, the ConCom output “does not provide for an automatic allocation of any specific percentage to the LGUs.
“Hence, the implication is that the LGUs will be at the mercy of the federal region’s governor and the regional assembly,” he said.
He said the fear is that allocations may be delayed or undisturbed through the maneuvering of the governor or the regional assembly, thus opening the flood gates for palakasan.
He said that as a result, not a few LGU officials are more inclined at going for decentralization first before going federal. “This means upgrading the local government code before shifting to a federal system, following the Swiss model, with modifications to suit Philippine conditions.
“No doubt this is an interesting time for our country, and LGUs face the challenge of innovating or stagnating,” he said.
