Section 62 Investing in Education Trust Fund

(a) Notwithstanding any general or special law to the contrary, there shall be established and set up on the books of the commonwealth an Investing in Education Trust Fund, for which the secretary of administration and finance shall serve as trustee. The fund shall be credited with certain revenues collected in fiscal year 2020, as defined in subsection (b). Revenues credited to the fund shall not include the dedicated sales tax revenue amounts, as defined in sections 35T and 35BB of chapter 10 of the General Laws. If revenues credited to the fund equal $200,000,000 or more in fiscal year 2020, the secretary of administration and finance shall transfer, without further appropriation, monies in the fund as follows:

(1) $100,000,000 to the College Affordability and Success Trust Fund, established in subsection (d);

(2) $50,000,000 to the Public School Improvement Trust Fund, established in subsection (e);

(3) $30,000,000 to the School Safety Trust Fund, established in subsection (f);

(4) $20,000,000 to the Water Pollution Abatement Revolving Fund, established in section 2L of chapter 29 of the General Laws, for public school deleading projects; and

(5) the balance to the Commonwealth Stabilization Fund, established in section 2H of said chapter 29 of the General Laws.

If the revenues credited to the fund are less than $200,000,000, the secretary of administration and finance shall transfer, without further appropriation, monies in the fund as follows:

(1) 50 per cent to the College Affordability and Success Trust Fund, established in subsection (d);

(2) 25 per cent to the Public School Improvement Trust Fund, established in subsection (e);

(3) 15 per cent to the School Safety Trust Fund, established in subsection (f); and

(4) 10 per cent to the Water Pollution Abatement Revolving Fund, established in said section 2L of said chapter 29 of the General Laws, for public school deleading projects.

(b) The revenues credited to the fund in fiscal year 2020 shall consist of the amount by which revenues collected under chapters 64G, 64H, 64I and 64L of the General Laws exceed the benchmarks established for those tax sources for the month of June by the department of revenue. The department of revenue's determination of this amount shall be conclusive.

(c) The fund created in subsection (a) shall expire as of June 30, 2020. Any balance remaining in the fund as of that date shall be transferred to the General Fund.

(d) There shall be established and set up on the books of the commonwealth a College Affordability and Success Trust Fund. The fund shall consist of monies transferred under subsection (a) and all monies credited or transferred to the fund from any other fund or source. Amounts credited to the fund shall be substantially committed over a 3 year period by the secretary of the executive office of education, without further appropriation, as follows:

(1) 25 per cent for the commonwealth commitment program, administered by the department of higher education;

(2) 15 per cent for the development and implementation of early college programs, administered by the department of higher education and the department of elementary and secondary education;

(3) 25 per cent for a matching grant program for scholarships to students who are participating in college success programs at public and private 4-year higher education institutions in the commonwealth; provided, however, that such programs meet criteria established by the department of higher education; and provided, further, that such grants may not supplant other forms of financial aid, as defined by the department of higher education;

(4) 25 per cent for a matching grant program, administered by the department of higher education, to fund paid internships and cooperatives for students in 2-year and 4-year public higher education institutions in the commonwealth; and

(5) 10 per cent for pilot programs that demonstrate innovative financial aid strategies for improving higher education affordability and success, including, but not limited to, income share agreements, initiatives focused on disconnected youth and adult learners, and competency-based programs developed in partnership with employers.

In committing funds from the College Affordability and Success Trust Fund, the secretary of the executive office of education shall prioritize public colleges and universities in the commonwealth that develop long-term plans for reducing student charges and ensuring financial sustainability for their institutions, aligned with their approved strategic plans.

The secretary of the executive office of education shall submit an annual report detailing expenditures from the trust and related activities to the secretary of administration and finance, the chairs of the house and senate committees on ways and means, the chairs of the joint committee on higher education and the chairs of the joint committee on education.

Up to 1 per cent of the funding transferred to this trust may be used to support the costs of administering the programs identified above.

The unexpended balance in the fund at the end of a fiscal year shall not revert to the General Fund but shall remain available for expenditure in subsequent fiscal years.

(e) There shall be established and set up on the books of the commonwealth a Public School Improvement Trust Fund. The fund shall consist of monies transferred under subsection (a) and all monies credited or transferred to the fund from any other fund or source. Amounts credited to the fund shall be expended, without further appropriation, by the secretary of the executive office of education to support effective and sustainable improvement initiatives in public schools designated as in need of assistance pursuant to the school accountability system established by the board of elementary and secondary education

The fund shall be administered by the department of elementary and secondary education.

The secretary of the executive office of education shall submit an annual report detailing expenditures from the trust and related activities to the secretary of administration and finance, the chairs of the house and senate committees on ways and means and the chairs of the joint committee on education

Up to 1 per cent of the funding transferred to this trust may be used to support the costs of administering the trust to support improvement initiatives.

(f) There shall be established and set up on the books of the commonwealth a School Safety Trust Fund. The fund shall consist of monies transferred under subsection (a) and all monies credited or transferred to the fund from any other fund or source. Amounts credited to the fund shall be expended, without further appropriation, by the secretary of the executive office of education, in consultation with the secretary of the executive office of public safety and security and the secretary of the executive office of health and human services. Any expenditures from this fund shall be for initiatives to assist public schools in enhancing safety and security measures, including, but not limited to, multi-year matching grants to school districts, charter schools, and higher education institutions for school security and communications upgrades, training and best practice guidance for school resource officers, school officials, educators, health professionals and first responders, and the design and implementation of statewide resources and infrastructure for improving school safety.

Any unexpended balance in the fund at the end of a fiscal year shall not revert to the General Fund but shall remain available for expenditure in subsequent fiscal years.

The secretary of the executive office of education shall submit an annual report detailing expenditures from the trust and related activities to the secretary of administration and finance, the chairs of the house and senate committees on ways and means, the chairs of the joint committee on higher education, the chairs of the joint committee on education and the chairs of the joint committee on public safety and homeland security.

Up to 2 per cent of the funding transferred to this trust may be used to support the costs of administering the trust to support safety and security initiatives.

(g) The funds established under subsections (d), (e) and (f) shall expire as of June 30, 2028. Any balance remaining in these funds as of that date shall be transferred to the General Fund.

This section creates the trust fund structure to invest the one-time proceeds of the Sales Tax Modernization initiative to higher education scholarships, school deleading, school safety, public school improvement and the stabilization funds.