Many colleges and universities are taking note that state legislators in
The new proposal still has a long way to go before it becomes law. The Massachusetts Senate currently has the state budget under consideration, after which action by the House and Senate budget conference committee and the Governor await. With the end of the state’s June 30 fiscal year looming, the budget should be passed, with or without the amendment, within the next six weeks.
While the proposed tax, as written, would be levied on only nine institutions in the Commonwealth, many observers have noted that it reflects a larger effort to scrutinize the endowments of higher education institutions. The chair and ranking member of the U.S. Senate Finance Committee in January sent a letter and questionnaire to 136 colleges and universities with endowments of $500 million or more, asking a series of questions about the growth and use of endowments, and in particular about spending on financial aid.
Quite apart from its wisdom as a matter of public policy, the
If you have any questions about this proposed budget amendment, please consult your Ropes & Gray lawyer or any of the attorneys listed on this page.
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