Bill > S2013

This bill establishes a new annual 2.5% excise tax on private higher education institutions with endowment funds exceeding $1 billion, with the collected funds being deposited into a newly created Educational Opportunity for All Trust Fund. The fund will be administered by a seven-member Board of Trustees, which includes representatives from the departments of higher education and early education, as well as experts appointed by the Senate President, House Speaker, and education secretary. The fund is specifically designated to subsidize higher education, early education, and child care costs for lower-income and middle-class Massachusetts residents. The board members will serve two-year terms and can be reappointed, with the board electing its own chair. Importantly, any unspent funds at the end of each fiscal year will remain in the trust fund and will not revert to the General Fund, ensuring that the money continues to be available for educational support. The bill aims to create a sustainable funding mechanism to support educational opportunities by leveraging the resources of well-funded private educational institutions to help make education more accessible to Massachusetts residents.

Budget and Finance

https://malegislature.gov/Bills/194/S2013