Cebu City Vice Mayor Tomas Osmeña Raises Alarms Over P981.9 Million Supplemental Budget Proposal
During a committee hearing held on April 16, 2026, Cebu City Vice Mayor Tomas Osmeña expressed significant concerns regarding the proposed Supplemental Budget (SB) 1, which amounts to a substantial P981.9 million. This budget is intended to fund various programs and expenditures that were not included in the city's approved annual budget for 2026. Osmeña highlighted a critical issue: the lack of detailed explanations behind the additional appropriations, making it challenging for councilors to properly evaluate the increases.
Lack of Clarity in Allocations Sparks Debate
In a press conference on Thursday, Osmeña pointed out that many items in the proposal appear as added amounts without clearly identifying their original allocations, purposes, or current deficiencies. He emphasized, "Every single item there is asking for more, and they do not tell you what it is for." The structure of the proposal, he noted, presents amounts as additions without stating the base figures, leading to confusion. "You're told it's an addition, but addition to what? You don't even know what the original amount is. Everything is just 'in addition to X,' but you are not told what X is," Osmeña explained.
He warned that without clear breakdowns, the council risks approving items without fully understanding them, stating, "You're presumed to know what you're talking about. But many don't. That's the problem." This lack of transparency could potentially lead to misallocations or inefficient use of public funds.
Budget Process and Dispute Over Hearing Procedure
Following Osmeña's remarks, clarification was provided on how the budget was prepared. The committee on budget and finance, chaired by Dave Tumulak, explained that under the Local Government Code of 1991, only the mayor is authorized to prepare the executive budget, whether annual or supplemental. The proposal originates from the Cebu City Development Council, undergoes review by the local finance committee, and is submitted by the mayor to the City Council. Tumulak emphasized that the committee did not prepare the budget and is limited to conducting hearings, gathering inputs from resource persons, and submitting recommendations.
A dispute arose over the hearing procedure when Osmeña moved to suspend proceedings, resulting in the temporary dismissal of department heads and other resource persons. He sought more time for councilors to review and scrutinize the proposal before formal discussions. However, Tumulak opposed this move, stressing that the session was a committee hearing, not a regular session. "This is not a regular session. Under the House rules, the committee chair can call for a hearing to discuss proposals," he said. Tumulak added that the hearing had been scheduled through an official council resolution passed while the vice mayor was on leave, making it part of the formal legislative process.
Tumulak defended the hearing, stating, "This is the reason why we conduct budget hearings, for us to know what these programs are and how they were formulated." He noted that key bodies such as the local finance committee and the Cebu City Development Council were invited to explain how the proposed projects were developed, aiming to enhance understanding among councilors.
Concerns Over Funding Source and Unpaid Obligations
Councilor Alvin Arcilla also called for the suspension of the hearing, citing concerns over a P400 million entry listed as a source of funds. Arcilla raised questions about whether it is appropriate to use this amount, which allegedly represents previous obligations or payables to contractors and suppliers, for new expenditures. He explained that these obligations correspond to completed projects or delivered goods already used by the city, stating, "For me, this is alarming. These are obligations. There are contractors and suppliers who have already delivered, and they should be paid."
Arcilla emphasized the need for a detailed list of the payables, including the suppliers and contractors involved, to determine if the funds can be appropriately reallocated. "We need to see the list so we can determine if it is appropriate. The source of funds must match the expenditures," he said. He stressed that it would be unfair for the city to reallocate funds while businesses remain unpaid, as processing payments is the city's responsibility. His call to suspend the hearing aimed to give councilors time to review the details and ensure the proposed budget is properly supported.
Proceeding with Deliberations
Despite the concerns raised by Osmeña and Arcilla, the committee hearing proceeded. Officials indicated that these issues will be addressed during further deliberations before any final action is taken by the City Council. The ongoing discussions highlight the importance of transparency and accountability in local government budgeting processes, as Cebu City navigates the complexities of allocating nearly a billion pesos in supplemental funds.
