LCO 4359 1 of 5
General Assembly Governor's Bill No. 6867
January Session, 2025
LCO No. 4359
Referred to Committee on EDUCATION
Introduced by:
Request of the Governor
Pursuant to Joint Rule 9
AN ACT CREATING THE UNIVERSAL PRESCHOOL ENDOWMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) There is established the 1
Universal Preschool Endowment. Said endowment may contain any 2
moneys required or permitted by law to be deposited in the endowment 3
and shall receive and hold all payments and deposits for contributions 4
intended for said endowment, as well as gifts, bequests, endowments or 5
federal, state or local grants and any other funds from any public or 6
private source and all earnings until disbursed in accordance with the 7
provisions of this section. 8
(b) The amounts on deposit in said endowment shall not constitute 9
property of the state and said endowment shall not be construed to be a 10
department, institution or agency of the state. Amounts on deposit in 11
said endowment shall not be commingled with state funds and the state 12
shall have no claim to or against, or any interest in, such deposits. Any 13
contract entered into by or any obligation of said endowment shall not 14
constitute a debt or obligation of the state and the state shall have no 15 Bill No. 6867
LCO 4359 2 of 5
obligation to any person on account of said endowment and all amounts 16
obligated to be paid from said endowment shall be limited to amounts 17
available for such obligation on deposit in said endowment. Said 18
endowment shall continue in existence as long as it holds any deposits 19
or has any obligations and until its existence is terminated by law. 20
(c) Notwithstanding the provisions of sections 3-13 to 3-13h, 21
inclusive, of the general statutes, the Treasurer shall invest the amounts 22
on deposit in said endowment in a manner reasonable and appropriate 23
to achieve the objectives of said endowment, exercising the discretion 24
and care of a prudent person in similar circumstances with similar 25
objectives. The Treasurer shall give due consideration to rate of return, 26
risk, term or maturity, diversification of the total portfolio within said 27
endowment, liquidity, the projected disbursements and expenditures 28
and the expected payments, deposits, contributions and gifts to be 29
received. The Treasurer shall not require said endowment to invest 30
directly in obligations of the state or any political subdivision of the state 31
or in any investment or other endowment administered by the 32
Treasurer. The assets of said endowment shall be continuously invested 33
and reinvested in a manner consistent with the objectives of said 34
endowment until expended by the Commissioner of Early Childhood in 35
accordance with the provisions of this section. 36
(d) The Treasurer, on behalf of said endowment and for purposes of 37
said endowment, may: 38
(1) Receive and invest moneys in said endowment in any 39
instruments, obligations, securities or property in accordance with this 40
section; 41
(2) Enter into one or more contractual agreements, including 42
contracts for legal, actuarial, accounting, custodial, advisory, 43
management, administrative, advertising, marketing and consulting 44
services for said endowment and pay for such services from the assets 45
of said endowment; 46
(3) Procure insurance in connection with said endowment's property, 47 Bill No. 6867
LCO 4359 3 of 5
assets, activities or deposits to said endowment; 48
(4) Apply for and accept gifts, grants or donations from public or 49
private sources to enable said endowment to carry out its objectives; 50
(5) Adopt regulations in accordance with chapter 54 for purposes of 51
this section; 52
(6) Sue and be sued; 53
(7) Establish one or more accounts within said endowment; and 54
(8) Take any other action necessary to carry out the purposes of this 55
section and incidental to the duties imposed on the Treasurer pursuant 56
to this section. 57
(e) The Commissioner of Early Childhood may expend the amounts 58
on deposit in the Universal Preschool Endowment, if any, for the 59
purposes of creating sufficient capacity for preschool to be universally 60
available to children who are three and four years of age and children 61
who are five years of age and not eligible to enroll in school, pursuant 62
to section 10-15c of the general statutes, through a public-private 63
system, in accordance with local needs assessments and through a 64
competitive grant process prescribed by the Office of Early Childhood 65
in consultation with the State Department of Education. Said amounts 66
shall not be expended for any other purpose. 67
(f) Not more than ten per cent of the balance of said endowment, 68
determined as of December thirty-first of the prior fiscal year, may be 69
expended in any fiscal year, except that up to thirty million dollars of 70
said endowment may be expended in the fiscal year ending June 30, 71
2026. The Treasurer shall ensure that sufficient liquidity exists within 72
the Universal Preschool Endowment to allow for expenditures in each 73
fiscal year to the extent authorized by this subsection. 74
Sec. 2. Section 3-13c of the general statutes is repealed and the 75
following is substituted in lieu thereof (Effective from passage): 76 Bill No. 6867
LCO 4359 4 of 5
As used in sections 3-13 to 3-13e, inclusive, and 3-31b, "trust funds" 77
includes the Connecticut Municipal Employees' Retirement Fund A, the 78
Connecticut Municipal Employees' Retirement Fund B, the Soldiers, 79
Sailors and Marines Fund, the Family and Medical Leave Insurance 80
Trust Fund, the State's Attorneys' Retirement Fund, the Teachers' 81
Annuity Fund, the Teachers' Pension Fund, the Teachers' Survivorship 82
and Dependency Fund, the School Fund, the State Employees 83
Retirement Fund, the Hospital Insurance Fund, the Policemen and 84
Firemen Survivor's Benefit Fund, any trust fund described in 85
subdivision (1) of subsection (b) of section 7-450 that is administered, 86
held or invested by the State Treasurer, the Connecticut Baby Bond 87
Trust, the Universal Preschool Endowment, any Climate Change and 88
Coastal Resiliency Reserve Fund created pursuant to section 7-159d and 89
all other trust funds administered, held or invested by the State 90
Treasurer. 91
Sec. 3. (NEW) (Effective from passage) (a) For the fiscal year ending June 92
30, 2025, after the accounts for the General Fund have been closed and 93
the Comptroller has determined the amount of unappropriated surplus, 94
if any, in said fund, the amount of such surplus to a maximum of three 95
hundred million dollars shall be transferred by the Treasurer to the 96
Universal Preschool Endowment established under section 1 of this act. 97
(b) For the fiscal year ending June 30, 2026, and each fiscal year 98
thereafter, after the accounts for the General Fund have been closed and 99
the Comptroller has determined the amount of unappropriated surplus, 100
if any, in said fund, the entire amount of such surplus shall be 101
transferred by the Treasurer to the Universal Preschool Endowment, 102
except that if the amount in the Budget Reserve Fund is less than 103
eighteen per cent of the net General Fund appropriations for the current 104
fiscal year, the amount of such transfer shall be reduced and an amount 105
equal to such reduction shall be transferred to the Budget Reserve Fund. 106
(c) Any amount transferred pursuant to this section shall be deducted 107
in determining the amount of unappropriated surplus to be transferred 108
to the Budget Reserve Fund pursuant to subsection (b) of section 4-30a 109 Bill No. 6867
LCO 4359 5 of 5
of the general statutes. 110
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 from passage 3-13c
Sec. 3 from passage New section
ED Joint Favorable C/R APP