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The Education Service Contracting _ESC_ Program of the Philippines


  • pg 1
									The Education Service Contracting
 (ESC) Program of the Philippines
           Michael M. Alba
    De La Salle University  Manila
   The ESC program in a nutshell
• provides a fixed tuition subsidy
  to graduates of public elementary schools
  who opt to enroll
  in participating private high schools.

• effectively, contracts private schools
  to provide secondary education
  to students who otherwise would have
    attended public schools.
             Program Features
• Beneficiaries
  – graduates of public elementary schools
     • who opt to enroll in participating private high schools
         – Grantees pay school fees and expenses in excess of
           the tuition subsidy.
     • who are accepted by the participating private high
         – A school committee processes applications and
           screens grant applicants.
             Program Features
• Benefits
  – a fixed annual tuition subsidy through 4 years of
    high school
     • Value of the grant since SY 2008-2009: PhP10,000 per
       year in NCR and PhP5,000 elsewhere in the country.
• Requirements
  – Grantees must pass all academic requirements in
    each year level.
  – Grantees cannot take a leave from schooling
    except due to force majeure or illness.
              Program Features
• Service Providers
  – Private high schools
     • who apply to DepEd to participate in the program
     • who pass an annual certification process for quality of
 How the ESC Program came to be
• Education policy makers (in government and
  the private sector) wanted to make use of
  excess resources in private schools to address
  congestion and poor quality in public schools
  – Legal bases
     • RA 6728 of 1989: Government Assistance to Students
       and Teachers in Private Education (GASTPE)
     • RA 8545 of 1998: Expanded GASTPE
          Program Objectives
• Make quality secondary education more
  accessible to poor Filipino students
• Enhance the complementary roles of public
  and private education sectors
• Maximize the use of existing resources in the
  private education sector
• Realize savings for the government
• Ease the need for constructing new
  classrooms and hiring new teachers
    What has been achieved? (1)
• National Coverage as of SY 2008-2009
  – 476,776 grantees
     • 9.3 percent of 5.1 million students in public high schools
     • 35.8 percent of 1.3 million students in private high schools
  – 2,033 participating private high schools
     • 39.8 percent of 5,110 public high schools
         – On average, 4 private high schools handle the enrollment
           spillovers or congestion problems of 10 public high schools
     • 46.3 percent of 4,392 private high schools
  – 234.5 grantees per school, on average
     • 58.6 grantees per year level per school, on average
    What has been achieved? (2)
• The ESC program provides a lower cost
  alternative to direct public provision of
  – Cost of a public high school student: PhP9,048
  – Cost of an ESC grantee: PhP5,344
   What has been achieved? (3a)
• On average, a participating school receives
  PhP1.18 million per year from DepEd due to
  the ESC program
• But, in general, school fees exceed the ESC
  – The average support value of the ESC program is
  – sv = ESC grant ÷ school fees
ESC grants generate
                  OWN?                       P4.43 billion in
              TOTAL = ESC B
      revenues for P 4.43 schools

 GRANTEE,                                                         PAID BY ESC
2,040 , 46%                                                      GRANT, 2,393 ,

              ESC grantees shoulder P2.0 billion of the P4.43 billion.
   What has been achieved? (3b)
• In effect, the ESC program generates resources
  for participating schools, in excess of
  government transfers, since grantees make
  significant co-payments.
  More resources are thus generated for basic
• Can the ESC program be expanded without
  increasing costs and lowering the quality of
  private school education?
   – What is the cost structure of the program?
   – What is the optimal mix of delivery? Will private
     schools themselves become congested or suffer in
• Can the ESC program be better targeted to
  improve the overall accessibility and quality of
  secondary education?
   – How can the ESC program be used to improve public
     high schools?

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