Massachusetts House Passes Higher Education Bond Bill

The Massachusetts House of Representatives last week passed the BRIGHT Act, authorizing approximately $3.65 billion in capital investment to modernize Massachusetts’ public colleges and universities and support the state’s academic, research, workforce and climate goals. Originally filed by Governor Healey, the bill is financed by 10-year special obligation bonds that are backed by Fair Share surtax revenue. These funds will be used to address deferred maintenance, modernization projects, and decarbonization across higher education institutions.

“The BRIGHT Act will ensure that students across the state learn and train in modern, high-quality campus facilities, while strengthening Massachusetts’ competitiveness in research and innovation,” said House Speaker Ronald J. Mariano (D-Quincy). “Building on the Commonwealth’s increases in student financial aid, and on our commitment to making higher education more accessible and affordable, especially for low-income students, Massachusetts is undertaking a generational reinvestment in educating our residents and strengthening our higher education system. I would like to thank Representatives Michlewitz, Rogers and Finn for their work on this bill, my colleagues for supporting it, and Governor Healey for her commitment to this effort.”

“The BRIGHT Act will help usher in a new era for public higher education in Massachusetts,” Representative David M. Rogers (D- Cambridge), House Chair of the Joint Committee on Higher Education. “Under Speaker Mariano’s leadership, the House has created free community college, exponentially increased financial aid, and now the BRIGHT Act invests nearly $3.65 billion in public higher education campuses statewide. This new investment will: address essential campus infrastructure needs; develop modern learning spaces; and decrease reliance on fossil fuels.”

“The $3.65 billion BRIGHT Act, bonded through a new special obligation fund and backed by Fair Share revenues, will modernize every public higher education campus in Massachusetts,” said Representative Michael J. Finn (D-West Springfield), House Chair of the Joint Committee on Bonding, Capital Expenditures and State Assets. “This investment will spur economic development creating good-paying jobs, and deliver cleaner, state-of-the-art facilities that will prepare our students to lead in a competitive, sustainable future. I thank Speaker Mariano and House Leadership for prioritizing this landmark legislation and ensuring Massachusetts remains a national leader in public higher education.”

“Education is the great equalizer. This bill will allow for significant capital improvements to our public educational institutions which will foster increased economic growth and improved and expanding learning opportunities. I am pleased that the House came together to pass this legislation,” said Representative Jeffrey Rosario Turco (D-Winthrop).

The investments included in the bill create a long-term, statewide strategy for addressing aging facilities while aligning campuses with the state’s workforce, economic development, and climate goals. The bill also streamlines capital project delivery, expands the role of the Massachusetts State College Building Authority (MSCBA), and increases flexibility for campuses to manage facilities and property. The BRIGHT Act is estimated to create roughly 20,000 construction-related jobs across the Commonwealth as campuses undergo major capital improvements.

Specifically, the bill:

• Invests $3.65 Billion in Core Campus Infrastructure

• Authorizes approximately $3.65 billion in bond authorizations for investment in public higher education campuses. The Division of Capital Asset Management and Maintenance (DCAMM) will manage most of these investments. Of the approximately $3.65 billion, about $3.1 billion will support higher education capital projects related to deferred maintenance, decarbonization, modernization, and planning. The investments at public institutions of higher education are broken down as follows:

• $1.25 billion for the University of Massachusetts (UMass) System;

• $1.25 billion for state universities (9 campuses) and community colleges (15 campuses);

• $275 million for upgrades at MassArt;

• $100 million for the transition of campus facilities and property into housing and mixed-use developments;

• $80 million for costs associated with decarbonization and energy efficiency;

• $120 million for lab modernization, projects at community colleges to support collaboration with vocational technical schools, and projects related to student health and well-being; and

• $30 million for costs associated with developing required campus master plans.

• The remaining $170 million is authorized for several separate items as follows:

• $50 million for a grant program administered through the Executive Office of Administration and Finance (A&F) for general improvements and climate-related upgrades at public institutions of higher education;

• $20 million to the Executive Office of Technology Services and Security (EOTSS) for costs associated with facilitating or enhancing remote or hybrid learning at public institutions of higher education; and

• $100 million for a grant program administered by the Executive Office of Education (EOE) for improvements to upgrade and expand career technical education and training programs (Skills Capital Grants).

Updates to DCAMM Oversight

• Updates DCAMM’s project oversight in campus construction by raising the project delegation threshold from $5 million to $10 million for state universities and community colleges, allowing the Commissioner to delegate more projects to the MSCBA for supervision.

• Raises the threshold for schematic design to $500,000, exempting smaller repairs and upgrades from lengthy design and certification requirements.

Surplus Campus
Property Process

• Allows DCAMM to dispose of surplus campus property and directs all proceeds into a new Higher Education Property Disposition Fund. DCAMM needs to provide written notice to the municipalities where the property is located. These revenues can then be reinvested in other capital projects, including deferred maintenance, decarbonization, and other critical repairs, without requiring additional appropriations, giving campuses a sustainable way to reinvest in their own infrastructure.

• Requires DCAMM to conduct a public hearing to consider restrictions for property that exceeds 2 acres or is 150,000 square feet or greater.

• Anticipates delegating envelope/HVAC projects, which allows for increased decarbonization work.

Improves Education and Transportation Fund Capital Financing

• To support investments, the bill authorizes the State Treasurer to issue special obligation bonds backed by the Education and Transportation Fund, strengthening long-term funding capacity for capital projects.

• Education and Transportation Fund revenues pledged for debt services are protected from diversion, and Fair Share surtax rate cannot be reduced while those revenues are needed for repayment.

• Clarifies and expands allowable uses for the Education and Transportation Innovation and Capital Account to include public education, affordable higher education, transportation infrastructure, and related capital needs, such as rail, bridges, bicycle pathways, and other public transportation assets.

Modernizes Massachusetts State College Building Authority (MSCBA)

• Allows DCAMM Commissioner to delegate campus construction projects costing up to $10 million to the MSCBA, increasing it from $5 million.

• Updates MSCBA’s authority to provide expanded services to state universities and community colleges, including financing academic, administrative, and campus infrastructure, as well as managing decarbonization and energy efficiency improvements.

• Adds two ex officio non-voting seats to the MSCBA Board (one state university president and one community college president), increasing membership to 11 and allowing for enhanced information sharing.

Bond Issuance & Debt Structure

• To finance capital improvements, the bill authorizes the State Treasurer to issue up to approximately $3.1 billion in bonds for campus upgrades and $170 million for grants and technology services.

• Bonds are backed by Education and Transportation Fund revenues, not the state’s general obligation capacity, and are therefore exempt from statutory debt limits.

Enhances Reporting, Oversight & Accountability

• Requires annual reporting from DCAMM, A&F, EOE, UMass, the state universities, and the community colleges detailing project status, expenditures, emissions reductions, deferred maintenance addressed, square footage impacted, and alignment with campus master plans.

• Requires additional reporting for all deferred maintenance projects over $50 million within 90 days of the bill’s passage.

Increases Access to
Higher Education
Opportunities

• Provides private nonprofit institutions of higher education who are designated as federal minority serving institutions, or as municipally owned colleges, access to grant programs that are currently available to community colleges.

• Programs include MassReconnect, the SUCCESS program, and other grant programs that are run by the Department of Higher Education.

• Directs DHE to promulgate regulations accordingly. The bill passed the House of Representatives 148-5. It now goes to the Senate for consideration.