Debt Management

*Problems in financing public

education by the national
government
*How to get out of debt
HAZEL R. DIMARANAN
 Debt Management
refers to an unofficial agreement with unsecured creditors for
repayment of debts over a specific time period, generally
extending the amount of time over which the debt will be paid
back.
The basic aim of debt management is, therefore, to help you
clear your debts at a compact level over a fixed time period
thus helping you make a new start with your finances.
Who can use debt management?
are facing a short term cash flow problem and believe
that their financial position will change in the near
future
are not able or do not want to take out any additional
loans or use their equity in their home
want to do away with the pressure from creditors
want to pay off all their debts but are struggling with
their present repayment schedule
Financing Public Education
1. Funding Sources
1.1.State and Local Funding. State governments provide a
national average of around 49 percent of their education
budgets using a combination of income taxes, corporate taxes,
sales taxes and fees. Local or county governments contribute
on average about 43 percent, typically using revenue from
local taxes from residential and commercial properties.
Financing Public Education
1.2.Federal Funding. The federal government contributes
the remaining 8 percent of the public education budget, a
percentage that has increased since 1990. This amounts to
$70 billion annually, which is equal to 3 percent of the total
federal budget. Much of this funding is discretionary, which
means that Congress sets the amount annually through the
appropriations process.
Distribution of Funds
Generally, funding formulas have two distinct parts that are used
exclusively or combined in some way: foundation funding ensures a
minimum amount per pupil, and categorical funding finances specific
tasks, facilities, and special programs. The formulas consider any
combination of factors, including median family income levels,
property values, teacher allocation, total student enrollment,
inflation and additional weighting for students with extra need,
like low-income, special education, English language learners or
low-performing students.
EDUCATION-PHILIPPINES:
Problems to Finance Public Schools
The Philippine Constitution has mandated the government
to allocate the highest proportion of its budget to
education. But, in reality, Philippines still has one of the
lowest budget allocations to education among the
ASEAN countries.
 The education department admits it needs to build 21,000
classrooms and hire 10,000 teachers for public schools across
the country to fill the current shortfall, but the problem is
finding the money to fund this.
The Department of Education is also not only considering how to
increase access to education; it is concentrating more in improving the
quality of education, shifting further away from proposing additional
school buildings or new teachers and emphasizing instead more critical
inputs for education: textbooks, trainings, and better deployment.
The Commission on Higher Education is a Department of Education
component that has taken advantage of the new budget system. Last
year, in weeding out underperforming programs in state colleges, the
Commission cancelled 90 courses in 86 private and government state
colleges where the percentage of graduates passing exams for a license
was less than 3 percent.
“Although public elementary education is free, school-
related expenses like transportation fare, snacks, lunch,
school supplies and other learning materials are beyond the
financial capabilities of poor parents,” UNESCO said.
Out of every 100 Filipino schoolchildren enrolled every
year, 66 will complete elementary education, 42 will finish
high school but only 14 will earn a college degree, says the
Centre for Asia- Pacific Studies
 How to Get Out of Debt
Step 1: Use this tool to find out how much debt you REALLY
have
Step 2: Choose your “plan of attack” for paying off
debt
Step 3: Freeze your credit card debt — literally — to
stop it from growing
Step 4: Ask for lower interest rates on your credit cards
— and negotiate other bills.
Step 5: Earn more money
Thank You