LCP hails Supreme Court ruling junking cityhood of 16 towns
The League of Cities of the Philippines (LCP) yesterday hailed the Supreme Court ruling declaring as unconstitutional the elevation of 16 municipalities into cities in 2007.
"We thank the Supreme Court for this decision which will benefit our 20 members," LCP President and Mandaluyong City Mayor Benjamin "Benhur" Abalos said in telephone interview.
Iloilo City Mayor Jerry Treñas, LCP chair, said the ruling upheld the law. "It means that the position of the LCP was correct all the while."
The High Court on Tuesday ruled that laws passed last year converting the 16 towns into cities violated Republic Act 9009 which amended the Local Government Code and increased the annual income requirement for conversion of a municipality into a city from P20 million to P100 million.
It also requires the towns to have a land area of at least 100 square kilometers or a population of 150,000.
The 16 towns had sought exemption from the income requirements in cityhood laws passed last year. They have annual locally generated incomes ranging from P62 million to P82 million.
These include Baybay in Leyte province; Bogo in Cebu; Catbalogan in Samar; Tandag in Surigao Del Sur; Borongan in Eastern Samar; Tayabas in Quezon; Lamitan in Basilan; Tabuk in Kalinga; Bayugan in Agusan Del Sur; Batac in Ilocos Norte; Mati in Davao Oriental; Guihulngan in Negros Oriental; Cabadbaran in Agusan Del Norte; Carcar in Cebu; El Salvador in Misamis Oriental; and Naga in Cebu province.
In its petition filed in March last year, the LCP had asked the High Court to nullify laws converting the towns into cities. It said that the conversion of towns into cities that do not meet the income requirements will drastically cut the share of each city in Internal Revenue Allotment (IRA).
The increase in IRA share of cities drop by an average of P40 million because of the 16 new cities.
Puerto Princesa City in Palawan got only a P1 million increase instead of P145 million, according to Abalos.
The IRA is the tax share of local government units, which get 40 centavos of every peso in taxes collected by the government.
Abalos said they are not against cityhood in general but against "shortcuts" in converting towns in cities even if these do not meet the requirements.
"The Local Government Code has set parameters for cityhood including the P100 million minimum income. It is unfair to municipalities like San Juan and Navotas who had worked hard to meet the requirements," said Abalos.
But Abalos said the problem will not stop with the Supreme Court ruling as more towns will become cities in the coming years.
He pointed out that the number of cities have doubled from 60 a decade ago to the present 120.
"The bigger and long term issue is whether the allocation of resources can sustain the growing number of cities," he said.
He said that because of the increase in the number of cities, the income of cities have grown only by 49 percent in the last 15 years compared to the 160 percent increase of provinces.
"A lot more towns will become cities while the number of provinces and towns will be generally the same and even smaller if towns become cities," said Abalos.
The LCP is proposing to amend the IRA sharing from the 60-40 favoring the national government to 50-50.
"This will give the LGUS a fair share in the resources and help fund social services for a fast growing population," said Abalos.