CAN the Sangguniang Panlungsod discuss other matters in its regular sessions even if it has yet to approve an annual budget for 2011?

Councilor Brian Lim, son of Mayor Benjamin Lim and minority floor leader of Dagupan City, insists that under Section 323 of the Local Government Code, the SP cannot.

Lim stood up to oppose a committee hearing set on January 26 by the appropriations committee to discuss barangay budgets.

Invoking the Local Government Code, Lim said no other business may be taken up by the city council until the annual budget of the city has been signed.

But the lone lawyer of the city council, Councilor Alipio Serafin Fernandez, disagreed with the minority leader’s interpretation.

Fernandez pointed out that the words “may be” in the section of the Local Government Code indicates that it is subject to the SP’s discretion and, therefore, it is the council’s prerogative to discuss any other business matter even if the annual budget of the city is still being reviewed.”

The pertinent part of Section 323 reads: “Failure to Enact the Annual Appropriations. – In case the sanggunian concerned fails to pass the ordinance authorizing the annual appropriations at the beginning of the ensuing fiscal year, it shall continue to hold sessions, without additional remuneration for its members, until such ordinance is approved, and no other business may be taken up during such sessions.”

The SP has yet to pass an annual budget for 2011 as it returned the proposed budget to city hall for further revisions after noting several discrepancies during budget hearing on January 18 and 19.

“MAY” VS. “SHALL”

Fernandez further explained that had it been worded as “shall”, then Lim would have been right in interpreting it as mandatory.

“So, it is our prerogative to tackle other business matters. But the annual budget is still a priority,” Fernandez said.

Still Lim insisted that “it is very clear” in the code’s provision that no other topic or business can be taken up by the SP until after the budget is finished.

Vice Mayor Belen Fernandez, who chairs the SP, referred the matter to retired City Judge George Mejia, former city legal officer and now legal consultant of the SP, who agreed with Councilor Fernandez’s interpretation.

Mejia said that when the word “may” is used in law, ordinance or statute, it means it is permissive and discretionary and therefore, the council has a choice or option on whether or not to tackle other business matters.

“It would have been different if the word ‘shall’ was used instead of ‘may’ because the word is mandatory and that there is no option or choice for the council to take but to legislate till the budget is finished,” Mejia stressed.

Mejia cited the book of Professor Ruben Agpaoa on “Legal Words and Phrases” which distinguishes the word “may” from “shall”.

According to the vice mayor, Local Government Operations Officer Roderick Dawis who was also consulted after the session supported the statements of Councilor Fernandez and Mejia.

Dawis is expected to give his formal statement on the issue in next session. –LM

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