IN the aftermath of typhoons Ondoy, Pepeng and recently, Santi, the local government units’ (LGU) response to calamities was placed under the microscope. Some blamed the LGUs for the damage wrought by the typhoons, while some asked if the LGUs could have done more.

In furtherance of genuine local autonomy, LGUs can do so much more than what is given them. LGUs, as agents of (sea) change, are expected to go beyond the “cut-and-paste.” The principle of subsidiarity dictates that local concerns are best addressed by LGUs. No national law can possibly respond to all local problems. Even if a statute can anticipate everything, it is also up to the LGUs—as the frontliners—to configure and apply appropriate solutions.

In prescribing solutions to problems, LGUs have a wide array of powers. The LGUs’ powers can be classified into three categories—the enumerated or specific powers; the exclusionary or negative list of powers; and the residual or unstated powers.

The first class of powers comprises those powers which are expressly stated in the 1991 Local Government Code (LGC), other national laws and the charters of LGUs. Examples of this are the power to expropriate, issue business permits, prevent and suppress vagrancy, drug addiction and enforce environmental laws.

The second class of powers is that set of powers which, if exercised by LGUs, would be violative of the 1987 Constitution, be inconsistent with the LGC and other statutes, be in contravention of the charter of the LGU concerned, and belong to another governmental agency or instrumentality as provided by the Constitution or by law. Under this class, an LGU cannot levy income tax, cannot prohibit the setting up of lotto outlets, order the outright closure of an establishment for nonpayment of taxes, and regulate the issuance of drivers’ licenses.

The third class of powers consists of those powers not expressly delegated to LGUs (not belonging to the first class of powers), and those not prohibited to be exercised by LGUs (those not falling under the second class), and yet can be exercised by LGUs. These are the “residual” or unstated powers of LGUs. The term “residual,” in its ordinary usage, can be interchanged with the terms balance, excess, leftover, remainder, or surplus.

Despite the absence of a categorical provision in the Constitution, LGUs have residual powers in the same way as the President can exercise residual executive powers. They can exercise unstated, nondelegated, or nonprohibited powers provided these powers are necessary to carry out of the mandates and duties entrusted to LGUs, with the end in view of promoting general welfare in response to local concerns. The grant of residual powers recognizes that local conditions are innately diverse, that national-local government relations cannot be divided into fields of black and white, and  the delineation of national and local powers cannot be made with mathematical precision.

The residual character of LGU powers is seen in four areas of local governance—Police Power, Power of Taxation, Sources of Local Revenues and Corporate Powers.

Police power. The basis of residual powers insofar as police power is concerned is the second branch of the general welfare clause (police power proper).  In the promotion and protection of the general welfare, LGUs may enact ordinances, adopt policies and issue regulations that are not explicitly conferred on them by law. Two examples of this is the power to impose a curfew and direct the confiscation of driver’s licenses of errant drivers.

Power of taxation. The LGC expressly allows LGUs to levy taxes, fees or charges on any base or subject not otherwise specifically enumerated or taxed under the provisions of the National Internal Revenue Code. Under this category, a city can levy business tax on all other business not enumerated in Section 143 of the LGC.

Source of local revenues. The Constitution itself affords LGUs the power to create their own sources of revenues. There is no exclusive listing of local sources of revenues. This is the basis for the fiscal autonomy now enjoyed by all LGUs. Thus, since there is no statutory proscription, LGUs may raise revenues from money placements and investments in stocks.

Corporate powers. The LGC categorically empowers local governments to exercise such other powers granted to private corporations, subject to the limitations provided in the LGC and other laws. Thus, the list of corporate powers under the LGC is not finite.

The recognition that LGUs have residual powers is an admission that a “cut-and-paste” approach to governance will not serve the interests of the people and the State. Being straight-jacketed into blind compliance with national policies, while perfectly legal, will only reinforce a tradition local autonomy intended to break. A sincere affirmation of broad local government powers should also guide LGUs in facing the challenge of adopting and pursuing policies, ways and programs that are dynamic, creative, innovative and transformative. The opportunities for LGUs are therefore vast and are only limited by law and the imagination of local officials.