House Speaker Faustino Dy III said he is open to revisiting the National Tax Allotment framework and reviewing the 35-year-old Local Government Code to help municipalities manage their growing public service responsibilities.

Speaking before the League of Municipalities of the Philippines general assembly, Dy acknowledged a growing consensus among mayors that the 1991 law governing local autonomy is outdated.

“We heard your voices and your clamor is clear,” Dy said. “Based on your own consultations and surveys, it is very clear that it is time to review and update our 1991 Local Government Code.”

The Speaker noted that the three decades since the law’s passage have seen major shifts in governance and economic realities.

He also stressed that the need for reform became more urgent following the Supreme Court’s Mandanas-Garcia ruling, which increased the share of national taxes for local government units but also shifted more frontline service responsibilities to them.

“It is vital that we go back and examine this because after the Mandanas-Garcia ruling, the duty of local governments to deliver services to our countrymen has grown,” Dy said.

He acknowledged that while mandates have increased, many municipalities still struggle with limited resources, particularly in funding health workers and classrooms.

“The reality is that even as responsibilities increased, it did not necessarily mean an increase in our resources,” Dy said. “If the responsibility of the LGU is greater, there must also be sufficient resources for it.”

Dy said a legislative review would allow the House to examine reforms regarding fiscal powers and the National Tax Allotment to ensure municipalities remain effective partners in national development.