The Senate Committee on Higher and Technical-Vocational Education is pushing for sweeping reforms to improve the quality and oversight of local universities and colleges (LUCs). During a hearing on Wednesday, April 23, committee members and education officials addressed critical governance gaps in these institutions, which are funded and established by local government units (LGUs).
Rapid Growth Outpacing Quality Control
Data from the Second Congressional Commission on Education (EDCOM 2) indicates that LUCs are currently the fastest-growing segment of the higher education system. Enrollment in baccalaureate programs increased by 44 percent, rising from approximately 343,000 in 2021 to about 493,000 in 2023.
However, this growth has not been matched by consistent oversight. Out of 152 LUCs listed by the Commission on Higher Education (CHED), only 107 were granted Institutional Recognition for Academic Year 2024–2025.
EDCOM 2 Commissioner Sherwin Gatchalian noted that roughly 34 percent of LUCs lack institutional recognition. This deficiency suggests issues with quality and compliance, which effectively prevents these institutions from accessing free higher education.
Systemic Barriers and Faculty Disparities
Beyond regulatory issues, officials highlighted systemic challenges that hinder performance. EDCOM 2 Executive Director Karol Mark Yee explained that faculty salaries in LUCs are tied to the income classification of their respective LGUs.

This funding structure creates a disparity where instructors in some LUCs may receive only about 65 percent of the salary earned by their counterparts in state universities and colleges. Such limited resources can hinder the ability of poorer areas to recruit qualified educators.
Outdated Legal Frameworks
The commission pointed out that the legal frameworks governing LUCs, primarily the Local Government Code of 1991 and Batas Pambansa Blg. 232, are now considered outdated. These policies may be insufficient to handle the challenges facing modern institutions.
Historically, compliance with CHED standards has been weak. According to Yee, many LUCs only began seeking recognition after the Universal Access to Quality Tertiary Education Act tied government subsidies to quality assurance.
Moving Toward National Standards
CHED Chairperson Shirley Agrupis has supported the introduction of stricter, standards-based pathways for the development of LUCs. She emphasized that public support could be made contingent on demonstrated compliance and capacity.
Senator Loren Legarda stated that a proposed measure may establish mandatory national guidelines for the operation, creation and quality assurance of LUCs. This could include minimum requirements that LGUs must satisfy before they are permitted to set up latest institutions.
Such reforms are likely to target the one-third of publicly funded institutions that currently operate without meeting minimum requirements.
Frequently Asked Questions
Why is institutional recognition important for LUCs?
Institutional recognition is necessary for compliance with CHED requirements; without it, these institutions cannot access free higher education.
How many LUCs currently lack institutional recognition?
Of the 152 LUCs listed by CHED, only 107 have been granted Institutional Recognition for Academic Year 2024–2025, meaning about 34 percent lack this recognition.
What causes the salary gap for instructors in local colleges?
Salaries are tied to the income classification of the local government units (LGUs) that fund them, which can result in some instructors earning only about 65 percent of the salary of those in state universities and colleges.
Do you believe that tying university funding to local government income creates an unfair disadvantage for students in poorer provinces?
