Once we are under a federal system, all component states collect their own taxes and contribute only a small fraction of their revenues to the federal or central government for only three centralized functions, namely: National Defense, including the National Police, Justice and Foreign Affairs. All the rest shall be left to each state, including health, education, labor and employment, trade, transportation, communication, agriculture, agrarian reform, justice environment, natural resources. The states will manage mining and forest matters and shall control all natural resources. Each state will have its own unicameral congress and a separate court of appeals. There will be only one centralized Supreme Court and one federal senate with three senators from each state.
Read more: Why federalism will be good for the Philippines