Cebu Daily News / News

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Mandaue employees’ pay increase denied By Dale G. Israel Cebu Daily News Posted date: January 15, 2009 The Department of Budget and Management in Central Visayas (DBM-7) has disallowed the P1.3 million lump-sum item in Mandaue City’s Supplemental Budget No. 2 last year because the city government exceeded the limit for expenses to pay city employees. “The said ‘other personnel benefits’ are not specified. Nevertheless, this appropriation for personnel benefits is hereby disallowed,” said Carmela Fernan, DBM-7 regional director, in a letter sent to Mayor Jonas Cortes and the City Council. The entire P108-million supplemental budget approved by the City Council complied with most of the requirements under the Local Government Code. But the lump-sum cash benefits for employees will exceed the ceiling set by the code. “A review thereof showed substantial compliance of the code... and other relevant laws except for the lump-sum appropriation for other personnel benefits in the amount of P1.3 million since the personnel services limitation of the city has already been exceeded,” Fernan said. Vice Mayor Carlo Fortuna said that the lump-sum amount was intended for the mandatory 10-percent increase in the salaries of city government employees. He said that the issue raised by the DBM-7 was discussed by City Councilor Emiliano Rosal and City Budget Officer Lamberto Marababol. Fortuna said the DBM-7’s decision would not affect employees’ salaries. He said the City Budget Officer will send the DBM-7 an explanation. He said there was no excess in the personnel services expenses because the computations made by the DBM included pay allocation for casual employees. He said that the allocation was not used because city government has not been appointing new casual employees. “Since the mayor did not appoint casuals, the money was not spent. Hence, the actual expenditures for the personnel services did not exceed the limitations,” said Fortuna, presiding officer of the City Council. Section 325-A of the Local Government Code of 1991 states that the amount to be expended for personnel services and benefits should not exceed 45 percent of the annual budget, including its supplemental appropriations. Though there are rule exemptions, Fernan said. Some exemptions are: if the city government absorbed the additional cost due to the transfer of national government personnel on account devolution; creation the mandatory government positions; payment of the magna carta of public health workers; payment of retirement equity and retirement benefits; and payment of the monetization of leave credits of employees.