Fiscal Management Challenges and Prospects of School Principals: A Policy Review of Finance Utilization

Abstract

This study sought to determine the challenges and prospects of school principals in the management of school finance, specifically the Maintenance and Other Operating Expenses of public schools in the Philippines, as a basis for policy analysis and review. The respondents generally agreed that the school MOOE is being used to a great extent in terms of school operations and development (mean=4.11), as far as school operations and development, teachers’ welfare and development, and students’ welfare and development are concerned. It was found out that there is a significant difference in position, while there are no significant differences as to Educational Attainment and Length of Service when compared between ratings of respondents on MOOE utilization in terms of school operations and development when grouped according to profile. There are no significant differences according to position, educational attainment, and length of service when comparing respondents on MOOE utilization in terms of teachers’ welfare and development, and students' welfare and development. The study reveals that school principals are increasingly transitioning into administrative roles due to rising external demands, potentially distancing them from their primary roles as educational catalysts. However, this shift is balanced by a strategic commitment to the Annual Improvement Plan and the effective utilization of MOOE funds. By prioritizing the welfare of both teachers and pupils, principals ensure that resource distribution directly supports the teaching and learning process. Ultimately, these firm fiscal decisions foster a healthy school environment that remains conducive to student growth. A policy review of fiscal guidelines is recommended to reinforce the alignment between budget distribution and school-level development, ensuring that financial decisions remain learner-centered even as administrative roles evolve.