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TO:	The Minister of Education, Culture and Sports The Minister of Finance and the Collector of Internal
		Revenue
	The Minister of the Budget and the Director, Office,
		of Compensation and Position Classification
	The President, Government Service Insurance System The Director, National Tax Research Center
	The General Manager, Philippine Charity Sweepstakes
		Office

WHEREAS, the strength of the educational system depends on the quality of teaching;

WHEREAS, the compensation package of schoolteachers, including basic salary, allowances and fringe benefits, suffers in comparison with those of other professions and in comparison with teacher compensation in prior years when adjusted for price level changes, resulting in the progressive loss of attractivess of teaching as a career;

WHEREAS, a reasonable compensation level is needed to assure the standing of the teaching profession and the continued inflow of promising entrants into the teaching profession and the maintenance in the school system of the best and an adequate number of teachers;

WHEREAS, the amounts involved are large and consequently calls for a systematic study of financial needs and sources:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby Order and Instruct the Minister of Education, Culture and Sports to coordinate the preparation and, submission of a comprehensive financial study of schoolteachers ocmprensation package, including the stated aspects of the financial study assigned to Heads of Office to which this Letter is addressed:

1. The Minister of Education, Culture and Sports, with the assistance of the Director, Office of Compensation and Position Classification and the President of the Government Insurance System, shall estimate the financial requirements of a gradual but systematic upgrading of teacher salary, allowances and benefits to such levels as would would make these competitive with those of other professions demanding commensurate skills and training;
   
   
2. The Minister of the Budget shall study the potential of increasing the share of teachers in (a) the salary adjustment and related funds appropriated and programmed for release in 1984, and (b) the budgetary provisions for 1985 and succeding years;
   
   
3. The Minister of Finance, the Director of the National Tax Research Center and the Collector of Internal Revenue shall identify potential sources of revenue that may be tapped for the purpose of allowing reasonable increases in teacher compensation, including new revenue measures or changes in the purpose of existing special funds whose purposes may already have been adequately met.  The study shall cover both the national government and local government units, with reference to their respective capability of assuring a uniform level of salary and allowances;
   
   
4. The Minister of Education, Culture and Sports shall study and recommend on regular lotteries, the proceeds of which shall be earmarked for upgrading schoolteachers salaries and allowances, using such innovative techniques as the "Instant Panalo" feature of the "Swerte sa Bangko" campaign of the Central Bank to attract dollar remittances through the banking system.  This shall be done with the cooperation of the Philippine Charity Sweeptakes Office and other agencies concerned;
   
   
5. The Minister of Education, Culture, and Sports shall study and recommend on possible income generating of cost saving possibilities; the proceeds of which may be used for the purposes of this Letter.  The studies shall specifically include (a) realization of the full income producing potential of existing school resources, particularly for food production, (b) reducing overhead and non-urgent costs of the Ministry, and (c) rationalization of the income and expense policies and procedures of the various centers and projects under administration of the Ministry;
   
   
6. The Minister of Education, Culture and Sports is hereby authorized to organize the necessary task forces or study groups and to engage such consultants as may be necessary, to adequately conduct and coordinate the studies herein Ordered.  Costs shall be covered from the budgetary allocations of the Ministry.

Done, in the City of Manila, this 23rd day of January, nineteen hundred and eighty-four.