After a laconic discourse on the intelligence fund in last week’s issue, we will now proceed to the second source of pork barrel in the local level, the so-called 20% development fund found in the annual budget of every local government unit. Under Section 287 of the bible on local governments, the Local Government Code, it provides that each local government unit shall appropriate in its annual budget no less than twenty percent (20%) of its annual internal revenue allotment (IRA) for development projects. IRA is the share of every local government including provinces, cities, municipalities and barangays coming from the national government which releases automatically. Most local government units simply rely on the IRA because local income generation is not sufficient to sustain their annual budget.

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This means that if the annual budget of a local government unit reaches P100 M for instance, at least P20 M may be set aside for the development fund. Thus, an annual budget of P1 B, there is at least P200 M that could be set aside for the development funds. The local government code mandates that copies of the development plans of local government units shall be furnished the Department of Interior and Local Government (DILG). A Joint Memorandum Circular No. 2011-1 dated April 13, 2011 by DILG and the Department of Budget and Management (DBM) was issued to governors and mayors including the Punong Barangays as well as to the presiding officers and members of the local sanggunians. It amended the DILG-DBM Joint Memorandum circular No. 1 dated September 20, 2005 entitled “Guidelines on the Appropriation and Utilization of the 20% of the Annual Revenue Allotment for Development Projects” and the DILG Memorandum Circular No. 2010-138 dated December 2, 2010 entitled “Use of the 20% Component of the Annual Internal Revenue Allotment Shares”.

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What are the projects or programs allowed to be financed by this development fund? It may be used for the following priority programs and projects like social, economic development and environmental management. To summarize these programs and projects, the late DILG Sec. Jessie Robredo earlier explained that local government officials may use it for expenditures that are “connected to or related with” the implementation of a particular development project. These development projects may include construction or rehabilitation of evacuation centers, portable water supply system, evacuation centers, local roads or bridges, sanitary landfills, material recovery facility and public facilities such as multi-purpose halls; purchase or repair of area-wide calamity-related alarm or warning system and appropriate alarming-related rescue operations equipment; and purchase and development of land for relocation of victims of calamities, among others. But take note of this, the 20% development fund cannot be used for administrative expenses such as cash gifts, bonuses, food allowance, medical assistance, uniforms, supplies, meetings, communication, water and light, petroleum products and the like. It cannot be used for salaries, wages or overtime pay, travelling expenses, registration or participation fees in training, seminars, conferences or conventions, purchase of administrative office furniture, fixtures equipment or appliances; and purchase, maintenance or repair of motor vehicles or motorcycles. Frankly stated, the 20% development fund is indeed a pork barrel. It can be used to propagate votes in the next polls.

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In one of my hearings last week, there was an exchange of ideas, as an aside, sparked by the ideas of the presiding judge about the pork barrel. There were two former board members present in the court room. They both confirmed that they also have pork barrels of at least P1 million for every year during their term. One ex-board member confirmed that she strictly monitored the releases of her pork barrel. She found out that there was one instance that a Punong Barangay requested an amount from her pork barrel to buy a computer set. When she visited the barangay later, there was no computer in the barangay hall. She questioned the Punong Barangay what happened to her financial assistance, but the latter merely replied that the amount was not enough to buy a computer set, so they used her pork barrel in other projects. In the next election, she only got two votes in the said barangay.

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In the city level, the availability of this 20% development fund may depend upon the political configuration between the mayor and the vice-mayor as well as the members of the sanggunian. Firstly, it is the executive branch headed by the mayor who prepares the proposed annual budget. The budget officer can always follow and make the adjustments according to baton of the mayor who may place the 20% development fund in his office. The city mayor can also share the fund with the office of the vice-mayor and the city councilors. But just like the present configuration in the city, wherein the mayor comes from one group and the vice-mayor from another faction plus the members of the sanggunian are products of a three-cornered fight, we cannot expect the 20% development fund to be that readily available to the vice-mayor and the city kagawads. We will see try to see the proposed budget next year. If the 20% development fund is under the office of the mayor, only his party mates in the sanggunian can only have access to that if he so desires.

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POSTSCRIPT: As the barangay polls draw near, we heard several stories in the sidelines especially in the city level. One, that a vice-gubernatorial bet last May who may run as a Punong Barangay may end taking the wife of the mayor as her opponent. We also heard two former colleagues seeking for a Punong Barangay in their areas after losing their bids last May. One thing is for sure in the meantime, the barangay election is going to be a positioning among those former, present and future dispensations. There are still more when we return.