Local Government Midterm Cheat Notes:

Decentralization
is a decision by the central government authorizing its subordinates, whether geographically or
functionally defined, to exercise authority in certain areas. It involves decision-making by
subnational units. It is typically a delegated power, wherein a larger government chooses to
delegate certain authority to more local governments. Federalism implies some measure of
decentralization, but unitary systems may also decentralize. Decentralization differs intrinsically
from federalism in that the sub-units that have been authorized to act (by delegation) do not
possess any claim of right against the central government.
Kinds of Decentralization
1) Deconcentration (administrative decentralization)
Involves the transfer of functions or the delegation of authority and responsibility from the national
office to the regional and local offices
The central government delegates administrative powers to political subdivisions in order to
broaden the base of government power and in the process to make local governments "more
responsive and accountable," and "ensure their fullest development as self-reliant communities
and make them more effective partners in the pursuit of national development and social
progress." At the same time, it relieves the central government of the burden of managing local
affairs and enables it to concentrate on national concerns. The President exercises "general
supervision" over them, but only to "ensure that local affairs are administered according to law."
He has no control over their acts in the sense that he can substitute their judgments with his own.
(Limbona v. Mangelin)
2) Devolution (political decentralization, decentralization of power)
The abdication of powers, responsibilities, and resources for the performance of certain functions
from the central government to local government units.
There is an actual transfer of powers and responsibilities.
It aims to grant greater autonomy to local government units in cognizance of their right to selfgovernment, to make them self-reliant, and to improve their administrative and technical
capabilities.
Involves an abdication of political power in the favor of local government units declared to be
autonomous. In that case, the autonomous government is free to chart its own destiny and shape
its future with minimum intervention from central authorities. According to a constitutional author,
decentralization of power amounts to "self-immolation," since in that event the autonomous
government becomes accountable not to the central authorities but to its constituency. (Limbona
v. Mangelin)
Naming of Local Government Units and Public Places, Streets and Structures.
SECTION 13. Naming of Local Government Units and Public Places, Streets and Structures.
(a) The Sangguniang Panlalawigan may, in consultation with the Philippine Historical
Commission (PHC), change the name of the following within its territorial jurisdiction:
(1) Component cities and municipalities, upon the recommendation of the Sanggunian
concerned;
(2) Provincial roads, avenues, boulevards, thorough-fares, and bridges;
(3) Public vocational or technical schools and other post-secondary and tertiary schools;
(4) Provincial hospitals, health centers, and other health facilities; and
(5) Any other public place or building owned by the provincial government.
(b) The Sanggunian of highly urbanized cities and of component cities whose charters prohibit their
voters from voting for provincial elective officials, hereinafter referred to in this Code as independent
component cities, may, in consultation with the Philippine Historical
Commission, change the name of the following within its territorial jurisdiction:

(1) City Barangays, upon the recommendation of the Sangguniang Barangay concerned;
(2) City roads, avenues, boulevards, thorough fares, and bridges;
(3) Public elementary, secondary and vocational or technical schools, community colleges and
non-chartered colleges;
(4) City hospitals, health centers and other health facilities; and
(5) Any other public place or building owned by the city government.
(c) The Sanggunians of component cities and municipalities may, in consultation with the
Philippine Historical Commission, change the name of the following within its territorial jurisdiction:
(1) City and municipal Barangays, upon recommendation of the Sangguniang Barangay
concerned;
(2) City, municipal and Barangay roads, avenues, boulevards, thorough fares, and bridges;
(3) City and municipal public elementary, secondary and vocational or technical schools, postsecondary and other tertiary schools;
(4) City and municipal hospitals, health centers and other health facilities; and
(5) Any other public place or building owned by the municipal government.
(d) None of the foregoing local government units, institutions, places, or buildings shall be named after a
living person, nor may a change of name be made unless for a justifiable reason and, in any case, not
oftener than once every ten (10) years. The name of a local government unit or a public place, street or
structure with historical, cultural, or ethnic significance shall not be changed, unless by a unanimous vote
of the Sanggunian concerned and in consultation with the PHC.
(e) A change of name of a public school shall be made only upon the recommendation of the local school
board concerned.
(f) A change of name of public hospitals, health centers, and other health facilities shall be made only
upon the recommendation of the local health board concerned.
(g) The change of name of any local government unit shall be effective only upon ratification in a
plebiscite conducted for the purpose in the political unit directly affected. In any change of name, the
Office of the President, the representative of the legislative district concerned, and the Bureau of Posts
shall be notified.
Jurisdictional Responsibility for Settlement of Boundary Dispute
SECTION 118. Jurisdictional Responsibility for Settlement of Boundary Dispute. - Boundary disputes
between and among local government units shall, as much as possible, be settled amicably. To this end:
(a) Boundary disputes involving two (2) or more Barangays in the same city or municipality shall be
referred for settlement to the Sangguniang Panlungsod or Sangguniang bayan concerned.
(b) Boundary disputes involving two (2) or more municipalities within the same province shall be referred
for settlement to the Sangguniang Panlalawigan concerned.
(c) Boundary disputes involving municipalities or component cities of different provinces shall be jointly
referred for settlement to the Sanggunians of the provinces concerned.
(d) Boundary disputes involving a component city or municipality on the one hand and a highly urbanized
city on the other, or two (2) or more highly urbanized cities, shall be jointly referred for settlement to
the respective Sanggunians of the parties.
(e) In the event the Sanggunian fails to effect an amicable settlement within sixty (60) days from the date
the dispute was referred thereto, it shall issue a certification to that effect. Thereafter, the dispute shall be
formally tried by the Sanggunian concerned which shall decide the issue within sixty (60) days from the
date of the certification referred to above.
Revenue making power of the LGU
Sources of LGU funds:

1)
2)
3)
4)

Own sources of revenue

Taxes fees, and charges which accrue exclusively for their use and disposition
Just share in national taxes which shall be automatically and directly released to them
Equitable share in the proceeds from utilization and development of national wealth and
resources within their territorial jurisdiction

Note: LGUs, in addition to administrative autonomy, also enjoy fiscal autonomy. LGUs have the power to
create their own sources of revenue, in addition to their equitable share in the national taxes and their
power allocate resources in accordance with their own priorities (Pimentel v. Aguirre, 2000)
SECTION 18. Power to Generate and Apply Resources. - Local government units shall have the power
and authority to establish an organization that shall be responsible for the efficient and effective
implementation of their development plans, program objectives and priorities; to create their own sources
of revenue and to levy taxes, fees, and charges which shall accrue exclusively for their use and
disposition and which shall be retained by them; to have a just share in national taxes which shall be
automatically and directly released to them without need of any further action; to have an equitable share
in the proceeds from the utilization and development of the national wealth and resources within their
respective territorial jurisdictions including sharing the same with the inhabitants by way of direct benefits;
to acquire, develop, lease, encumber, alienate, or otherwise dispose of real or personal property held by
them in their proprietary capacity and to apply their resources and assets for productive, developmental,
or welfare purposes, in the exercise or furtherance of their governmental or proprietary powers and
functions and thereby ensure their development into self-reliant communities and active participants in the
attainment of national goals.
Creation of a Political Subdivision

Only Congress and, by authority of law, local legislative councils, can create specific LGs.
Creation is a legislative act. The enabling law is referred to as the charter of the LGU.

The President or the Executive Branch of Government has no power to create local governments
(Camid vs. Office of the President, G.R. No. 161414, January 17, 2005).

Municipalities created by executive fiat but whose existence were not judicially nullified and which
continue to operate and exist after 1992 are considered regular municipalities. The 1991 LGC is
thus a curative legislation. If judicially annulled in a quo warranto case, the 1991 LGC will have no
curative effect (Section 442[d], 1991 LGC).

An LGU created by executive fiat which operated or functioned without interruption is considered
a municipality by prescription (Municipality of Jimenez vs. Baz, G.R. No. 105746, December 2,
1996).

Congress can provide for the incorporation of Autonomous Regions identified under the 1987
Constitution. It has not power to create other Autonomous Regions other than in Muslim
Mindanao and Cordilleras.
o

The Organic Act shall define the basic structure of government for the region consisting
of the executive department and legislative assembly, both of which shall be elective and
representative of the constituent political units. The organic acts shall likewise provide for
special courts with personal, family, and property law jurisdiction consistent with the
provisions of this Constitution and national laws (Section 18, Article X, 1987 Constitution).
The creation of the autonomous region shall be effective when approved by majority of
the votes cast by the constituent units in a plebiscite called for the purpose, provided that
only provinces, cities, and geographic areas voting favorably in such plebiscite shall be
included in the autonomous region (Section 18, Article X, 1987 Constitution).
The President cannot create a state; i.e., Bangsamoro Juridical Entity established under
a Memorandum of Agreement, whose relationship with the government is characterized

by shared authority and responsibility. It is a state in all but name as it meets the criteria
of statehood: (1) a permanent population; (2) a defined territory; (3) a government; and
(4) a capacity to enter into relations with other states (Province of North Cotabato vs.
Government of the Republic of the Philippines Peace Panel on Ancestral Domain, G.R.
No. 183591, October 14, 2008).

Congress can create provinces, cities, municipalities and barangays subject to the criteria
specified under the 1991 LGC (Section 10, Article X, 1987 Constitution) and special laws such as
Republic Act No. 9009 (conversion of municipalities to component cities).
o Congress, by special law, can provide for different requirements other than those
specified in the 1991 LGC (League of Cities of the Philippines v. Commission on
Elections, G.R. Nos. 176951, 177499 and 178056, April 12, 2011).
o The implementing rules and regulations cannot provide different requirements other than
what is provided by law. Exemption by administrative regulation from land requirement
when the province to be created is composed of one or more islands is invalid (Navarro
vs. Ermita, G.R. No. 180050, April 12, 2011).
o The sangguniang panlalawigan and sangguniang panlungsod can create barangays
(Section 6, 1991 LGC). The sangguniang bayan has no such authority under the 1991
LGC.
An LGU is deemed created on the day its charter takes effect.
o It is deemed incorporated on the day the charter is approved by a majority of the votes
cast in a plebiscite in the political units directly affected.
o When a municipality is split into two, all the barangays of the original municipality must
vote. The plebiscite electorate includes those who will be economically dislocated and
based on plurality of units (Padilla vs. Commission on Elections, G.R. No. 103328,
October 19, 1992).
o A plebiscite is required when a municipality is converted into an independent component
city and when the latter is later converted to a component city as there was an upgrade
and downgrade particularly insofar as taxes and supervision are concerned (Miranda
vs. Aguirre, G.R. No. 133064, September 16, 1999).
o A boundary dispute presents a prejudicial question to a plebiscite and thus must be
resolved prior to the conduct of any plebiscite (City of Pasig vs. Commission on
Elections, G.R. No. 125646, September 10, 1999).
o The Commission on Elections, not the regular courts, has jurisdiction over plebiscite
protest cases (Buac vs. Commission on Elections, G.R. No. 155855, January 26, 2004).
o The corporate existence of an LGU shall commence upon the election and qualification of
its chief executive and a majority of the members of its sanggunian, unless some other
time is fixed therefor by the law or ordinance creating it (Section 14, 1991 LGC).
o
The requirements for creation of local governments are: (1) population; (2) income; and (3) land
area.
Under the 1991 LGC, these are specific requirements for every type or sub-type of LGU (Sections
461, 450, 442, 386, 1991 LGC):

Requirement
Income

Province
P20Mn

Population

250,000

Land Area

2,000 sq. km.

City
Component City =
P20Mn
Highly Urbanized
City = P50Mn
Component City =
150,000
Highly Urbanized
City = 200,000
100 sq. km.

Municipality
P2.5Mn

Barangay

25,000

2,000
/
5,000
(Metro Manila)

50 sq. km.

Contiguous

Income shall be certified by the Department of Finance

Population certified by Phlippine Statistics Authority
Land Area certified by the Lands Management Bureau

For purposes of creation, only the land area is material. The law is clear.
o The aggregate territory which includes waters is not the criteria for creation under the
1991 LGC (Section 131 [r]).
o A charter states the boundaries of the local government. Areas or barangays not
mentioned are excluded (Municipality of Nueva Era vs. Municipality of Marcos, G.R. No.
169435, February 27, 2008).
A charter need not mention the population census (Tobias vs. Abalos, G.R. No. 114783,
December 8, 1994).
Failure to state the seat of government in the charter is not fatal (Samson vs. Aguirre, G.R. No.
133076, September 22, 1999).
Income under the 1991 LGC pertains to all funds of the LGU including the Internal Revenue
Allotment (Alvarez vs. Guingona, G.R. No. 118303, January 31, 1996). However, under R.A.
9009 which deals with the conversion of a municipality to a component city, the funds must be
internally-generated.
The requirements for the creation of a component city and an independent component city are
the same.
Depending on the type of LGU created, the presence of all the requirements of Population (P),
Land Area (LA) and Income (I) may vary (Sections 461, 450, 442, 386, 1991 LGC):
.
Barangay = P and LA
.
City = P and I or I and LA
.
Province = P and I or I and LA
.
Municipality = P, I and LA
.
Highly Urbanized City = P and I
When a municipality is converted to a city, the latter acquires a distinct legal personality from the
former. There is material change in the political and economic rights of the two LGs (Latasa vs.
Commission on Elections, G.R. No. 154829, December 10, 2003).

Reasoning Concept Local Autonomy Compare and contrast with power of the National Government
over LGUs
Judge Dadole vs. COA, G.R. No. 125350, December 3, 2002, - even as we recognize that the
Constitution guarantees autonomy to LGUs, the exercise of local autonomy remains subject to the power
of control by Congress and the power of general supervision by the President. xxx The President can only
interfere in the affairs and activities of a LGU if he finds that the latter had acted contrary to law. The
President or any of his alter egos, cannot interfere in local affairs as long as the concerned LGU acts
within the parameters of the law and the Constitution. Any directive, therefore, by the President or any of
his alter egos seeking to alter the wisdom of a law-conforming judgment on local affairs of a LGU is a
patent nullity, because it violates the principle of local autonomy, as well as the doctrine of separation of
powers of the executive and legislative departments in governing municipal corporations.
Lina vs. Pano, G.R. No. 129093, August 30, 2001| Power of General Supervision over Local
Governments - according to the Supreme Court, the basic relationship between the national legislature
and the local government units has not been enfeebled by the new provisions in the Constitution
strengthening the policy of local autonomy. Without meaning to detract from that policy, Congress retains
control of the LGUs although in a significantly reduced degree now under our previous Constitutions. The
power to create still includes the power to destroy. The power to grant still includes the power to withhold
or recall. True there are notable innovations in the Constitution, like the direct conferment on the LGUs of
the power to tax which cannot now be withdrawn by mere statute. By and large, however, the national

legislature is still the principal of LGUs, which cannot defy its will or modify or violate it. Ours is still a
unitary form of government, not a federal state. Being so, any form of autonomy granted to local
governments will necessarily be limited and confined within the extent allowed by the central authority.
In our outline:
Batangas CATV, Inc. vs. CA, G.R. No. 138810, September 29, 2004, - an ordinance enacted by virtue
of the general welfare clause is valid, unless it contravenes the fundamental law of the Philippines, or an
act of the Legislature, or unless it is against public policy, or is unreasonable, oppressive, partial,
discriminating, or in derogation of common right.
A local government unit cannot enact an ordinance or approve a resolution in violation of a general law.
Municipal authorities, under a general grant of power, cannot adopt ordinances which infringe the spirit of
a state law or repugnant to the general policy of the state. It is clear that in the absence of constitutional
or legislative authorization, municipalities have no power to grant franchises.
SJS vs. Atienza, Jr. G.R. No. 156052, March 7, 2007, - the Sangguniang Panlungsod shall enact such
ordinances as may be necessary to carry into effect and discharge the responsibilities conferred upon it
by law, and such as shall be necessary and proper to provide for the health and safety, comfort and
convenience, maintain peace and order and promote the general welfare of the community and
inhabitants. There is a duty to enforce the Ordinance as long as it has not been repealed by the
Sanggunian or annulled by the courts.
Powers of the ARMM
According to Dimasangcop v. Datumanong and Republic Act No. 9054 or An Act to Strengthen and
Expand the Organic Act for the Autonomous Region in Muslim Mindanao, Amending for the Purpose
Republic Act No. 6734, entitled An Act Providing for the Autonomous Region in Muslim Mindanao, as
Amended are:
SEC. 1. Powers and Functions. Subject to the provisions of the Constitution, the
Regional Government shall exercise those powers and functions expressly granted to it in this
Organic Act, or necessary for or incidental to the proper governance and development of all the
constituent units within the autonomous region consistent with the policy on regional and local
autonomy and decentralization.
The Regional Government may enact its own regional administrative code and regional
local government code consistent with the Constitution. The powers and functions already vested
upon and the shares of the national taxes provided by Republic Act No. 7160, the Local
Government Code of 1991, to provinces, cities, municipalities, and barangay in the autonomous
region shall not be reduced.
SEC. 2. Corporate Entity. The autonomous region is a corporate entity with jurisdiction
over all matters devolved to it by the Constitution and this Organic Act.
SEC. 3. Scope of Regional Assembly Legislative Power; Exceptions. The Regional
Assembly may exercise legislative power in the autonomous region for the benefit of the people
and for the development of the region except on the following matters:
(a) Foreign affairs;
(b) National defense and security;
(c) Postal service;
(d) Coinage and fiscal and monetary policies;

(e) Administration of justice; It may, however, legislate on matters covered by the

Shariah. The Shariah shall apply only to Muslims. Its application shall be limited by
pertinent constitutional provisions, particularly by the prohibition against cruel and
unusual punishment and by pertinent national legislation that promotes human rights and
the universally accepted legal principles and precepts;
(f) Quarantine;
(g) Customs and tariff;
(h) Citizenship;
(i) Naturalization, immigration and deportation;
(j) General auditing;
(k) National Elections;
(l) Maritime, land, air transportation, and communications; The autonomous government
shall, however, have the power to grant franchises, licenses and permits to land, sea and
air transportation plying routes in the provinces or cities within the region, and
communications facilities where frequencies are confined to and whose main offices are
located within the autonomous region;
(m) Patents, trademarks, trade names, and copyrights, and
(n) Foreign trade.

Cordillera Broad Coalition vs. COA 181 SCRA 495 - On the other hand, the creation of autonomous
regions in Muslim Mindanao and the Cordilleras, which is peculiar to the 1987 Constitution, contemplates
the grant of political autonomy and not just administrative autonomy to these regions. Thus, the provision
in the Constitution for an autonomous regional government with a basic structure consisting of an
executive department and a legislative assembly and special courts with personal, family and property
law jurisdiction in each of the autonomous regions.
The dynamic and more important aspect of local autonomy must be measured in terms of the scope of
the powers given to the local units.