Problems of the Panganiban Formula: Underallocation, Nonallocation, Overallocation

The Panganiban Formula was introduced by the Supreme Court when it ruled on the case Veterans Federal Party vs. Comelec (2001). In the said formula, a party-list group is entitled to one seat if it reaches the two-percent threshold of all the party-list votes. The additional number of seats that the party-list group shall receive is determined as follows:

1. if the party-list group has the most number of votes (called as the first party) and if it obtains
a. at least 6% of the total number of party-list votes, then it shall receive two more seats; or
b. at least 4% but less than 6% of the total number of party-list votes, then it shall receive one more seat, or
2. if the party-list group obtains the same number of votes as the first party then it receives the same number of additional seats as the first party, or
3. if the party-list group obtains at least one-half but less than the number of votes of the first party, then it shall receive one more seat, or
4. if the party-list group obtains less than one-half of that of the first party, then it does not receive any additional seat.
Party-List Canvass Report No. 30, the latest Party-list Tally of the Comelec shows that there are 17 party-list groups that obtain at least 2% of the total party-list votes where Buhay is the first party with 7.418753% of the total party-list votes. If we apply the Panganiban Formula we have the following results.

The 1987 Constitution mandates that the party-list shall constitute 20% of the total number of representatives in the House of Representatives including the party-list. There are 220 legislative districts now, the total number of party-list seats available is 220/4 = 55 seats. Note that 55/(220+55) = 0.2 or 20%.

Hence, the Panganiban Formula allocates only 23/55 = 0.41818182 or 41.82% of the total number of seats available. This is a case of underallocation.

In the 2007 party-list election, ninety-three party-list groups were allowed to participate by the Comelec. Thus, there is a possibility that no party will be able to reach the 2%-threshold. If this happens, no party-list group will receive a seat and the party-list will not be represented in the House of Representatives. This is a case of noallocation.

If the first party obtains 6% of the total party-list votes and 27 party-list groups obtains 3% of the the total party-list votes, then there will be 28 party-list groups that are entitled to a seat and their combined share of the party-list votes is 27(3%) + 6% = 87%. Using the Panganiban Formula, the first party shall receive 3 seats and the 27 party-list groups shall receive 2 seats each. The Panganiban Formula will allocate 3+54 = 57 seats. This allocation is two seats over the available number of seats.

Actually, the largest possible allocation of the Panganiban Formula is 65 seats where the first party obtains 6% and there are 31 party-list groups with 3% of the total party-list votes. This allocation is 10 seats over the available number of seats.

These are cases of overallocation.