The research focused on the fiscal problems frequently neglected in the Philippine public school system. In addition, the thesis comprehensively discussed the following topics: (1) state responsibility and control of public education; (2) principles of financing public schools; (3) financing public education in the Philippines; (4) Philippine educational system; and lastly (5) the economic problems of public education in the Philippines. In the end, it was concluded that the financial structure of educational system depend should be revised by tappping new sources of revenue in order to raise the standard of education in the 1950s.