House Bill No. 6867 establishes the Universal Preschool Endowment (UPE), a dedicated fund aimed at enhancing preschool education accessibility for children aged three to five, particularly those not eligible for kindergarten. The bill allows for contributions from various public and private sources and specifies that the endowment's funds will not be considered state property, ensuring the state has no claims or obligations related to it. The state treasurer will manage the endowment, with provisions for transferring unappropriated surpluses from the General Fund into the UPE, allowing up to $300 million for the fiscal year ending June 30, 2025, and the entire surplus in subsequent years, contingent on the Budget Reserve Fund's status.

Additionally, the bill amends current law regarding the treasurer's management of the endowment, prohibiting the requirement for investments in government obligations or other state-managed funds. Instead, it mandates that the endowment's assets be continuously invested in alignment with its objectives until utilized by the Office of Early Childhood (OEC) commissioner. The bill also imposes oversight and requirements on the treasurer's investments similar to those for other state funds, such as the Teachers’ Pension Fund. Overall, this legislation aims to create a structured financial framework to support preschool education, reflecting a broader legislative commitment to improving early childhood education funding and resources.

Statutes affected:
Governor's Bill: 3-13c
ED Joint Favorable Change of Reference: 3-13c
APP Joint Favorable: 3-13c
File No. 858: 3-13c