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CEBU CITY, Philippines – With the demotion for newly upgraded cities comes worries that localities would receive fewer funds.
Because of this, Naga Mayor Val Chiong said affected mayors agreed to appeal the Supreme Court decision.
Both Chiong and Mayor Celestino Martinez Jr. of Bogo said reverting to the status of a municipality would mean a reduction of their Internal Revenue Allotment (IRA), which is a local government’s share in national tax collections.
Part of Naga's P180 million IRA share this year was spent on infrastructure projects like the ongoing construction of its City Hall worth P80 million to P100 million, said Chiong.
Naga allocated at least P40 million and planned to tap P40 million to P60 million more from Naga's IRA share next year to complete the project.
“Nasubo gyud ta ani kay daghan na man ta ug na plana as a newly created city (We are saddened by the SC decision because we have a lot of plans as a newly created city),” said Chiong.
Naga City has also opened new offices for the schools division, bureau of jail management and penology and the prosecutors’ office.
Meanwhile, Martinez said a drop in IRA for Bogo would disrupt the delivery of basic services and operations of newly created offices for the education schools division, city assessor, city legal department and general services.
“This will become a very complicated thing because we have already started with the creation of new positions. I only hope the Supreme Court will reconsider its decision,” Martinez told Cebu Daily News.
Among the three new cities in Cebu, Bogo was the first to get cityhood status.
Bogo became a city on June 16, 2007. Less than a month later, Carcar was converted into a city on July 1. About two months later, it was the turn of Naga to become a city on September 2.
The conversion increased their IRA share from P60 million P180 million.
Martinez said that Bogo should not be made to comply with requirements of RA 9009, which increased the average annual income requirement for a municipality to be converted into a city.
He said Bogo’s application was filed together with that of Talisay town, which became a city in 2007. Martinez said Talisay's cityhood was approved ahead because former senator John Osmeña brought Talisay City's papers directly to former president Joseph Estrada for signature.
He said Bogo City's 100,000-square-kilometer land area and annual income of P70 million qualified it to become a city even under the old law.
Chiong said Naga’s application for cityhood also fulfilled requirements of the old law in land area and an annual income of P60 million.
Martinez said he was hopeful that the Department of Budget and Management (DBM) would not automatically reduce IRA shares until the SC resolves the motion for recondition to be filed by the affected 16 cities.
Local revenues raised only P30 million per year when Bogo was still a municipality to P60 million this year.
“Ug ma usab ang among IRA share magubot gyud na,” he said.
Martinez said Bogo already drafted its 2009 budget based on their projected IRA share as a newly created city and local revenues. /Inquirer with Reporter Doris C. Bongcac
