Calapan aims for 2nd class city status

CALAPAN CITY, Oriental Mindoro: Rep. Arnan Panaligan said there is a big possibility that cities and municipalities will be reclassified under a new law.

“Since 2012, no upgrading of local government unit classification has been made in the country, but because of the recently passed Republic Act (RA) 11964, which I was one of the principal authors, there is a big possibility that Calapan City would be promoted as a 2nd class city,” said Panaligan.

The Mindoro lawmaker took to social media to explain why this city and other local government units (LGUs) have not been upgraded from its classification as to income class and why Calapan City remains as 3rd class.

In his social media page, Panaligan posted on April 16, 2024 that contrary to common belief, the classification of LGUs based on average annual income is not the barometer of the level of development or the quality of life of residents, as these are merely based on the revenues from taxes collected that would serve as the basis of the salaries of employees and the setting of the minimum wage.

“This classification is also made as the basis if an LGU is qualified for financial assistance or being part of a national government program. For example, 4th and 5th class LGUs are usually the recipient of assistance, subsidy or grant or programs from the national government. There are national government programs in which 1st and 2nd class LGUs are disqualified,” Panaligan said in his post.

Citing RA 11964 that stipulates automatic reclassification of LGUs, Panaligan said there is a possibility that in 2025, Calapan City would be reclassified as a second class city.

Republic Act 11964, also known as the Automatic Income Classification of Local Government Units Act, was signed into law by President Ferdinand Marcos Jr. on Oct. 26, 2023.

The law institutionalizes the automatic income classification of local government units to provide a more responsive approach to the promotion of local autonomy and to enable LGUs to realize its full economic potential.

RA 11964 mandates that the finance secretary, in consultation with the National Economic and Development Authority and the LGU leagues concerned, shall have the power to adjust income ranges based on the actual growth rate of the annual regular income from the last reclassification.