Created in
Bond Ratings for Senior Lien Bonds as of 1/2018
Bonds Outstanding as of 6/30/2017
$5.8 billion

About MSBA Investor Relations

The Massachusetts School Building Authority (“MSBA”) is a quasi-independent government authority created by the Legislature in 2004 to reform the process of funding capital improvement projects in the Commonwealth's public schools. The MSBA replaced the former school building assistance program administered by the Department of Education (now the Department of Elementary and Secondary Education).

Chapter 208 of the Acts of 2004 (“Chapter 208,” and together with Chapter 70B of the Massachusetts General Laws, Section 35BB of Chapter 10 of the Massachusetts General Laws, and Chapter 210 of the Acts of 2004, each as amended from time to time, the “Act”) created the Authority to administer and fund a program for grants to cities, towns, and regional school districts for school construction and renovation projects (the “Program”).

Pursuant to the Act, all moneys received by The Commonwealth of Massachusetts (the “Commonwealth”) raised by a 1.00% statewide sales tax (drawn from the existing statewide 6.25% sales tax), excluding sales tax revenues on meals and from certain additional statutorily exempted revenues from sales, as further described herein (the “Dedicated Sales Tax Revenue Amount”), are to be credited to the Massachusetts School Modernization and Reconstruction Trust Fund (the “SMART Fund”), without appropriation, allotment or other action. Such amounts are credited to the SMART Fund pursuant to procedures established in a Memorandum of Understanding (the “MOU”), dated as of August 1, 2005, by and among the Authority, the Treasurer and Receiver-General of the Commonwealth (the “Treasurer”), the Comptroller of the Commonwealth (the “Comptroller”), and the Department of Revenue of the Commonwealth (the “Department of Revenue” or “DOR”).  

The Act expressly designates owners of the Authority’s bonds and notes (collectively, “Obligations”) as beneficiaries of the SMART Fund and, together with the Trust Agreement (defined below), provides that the Authority’s obligations to make payment of principal of, and premium, if any, and interest on Obligations are senior to all other claims on the Dedicated Sales Tax Revenue Amount. The Trust Agreement further provides that the Authority’s obligations to make payment of principal of, and premium, if any, and interest on Senior Bonds are senior to claims on the Dedicated Sales Tax Revenue Amount with respect to owners of Subordinated Bonds. The Act and the Trust Agreement prohibit the diversion of the Dedicated Sales Tax Revenue Amount from the Authority’s control and further prohibit the reduction of the rate of the taxes from which the Dedicated Sales Tax Revenue Amount is derived as set forth in the Act for as long as any Obligations of the Authority remain outstanding.

The MSBA strives to work with local communities to create affordable, sustainable, and energy efficient schools across Massachusetts. In its ten-year history, the MSBA has made more than $13 billion in reimbursements to cities, towns, and regional school districts for school construction projects. Instead of waiting years for reimbursement, districts now receive payments from the MSBA as costs are incurred, usually within 15 days of submitting a request through the MSBA’s online Pro-Pay System. 

For more information about the MSBA's programs, please see our website at

Massachusetts School Building Authority

40 Broad Street, Suite 500

Boston, MA  02109

Welcome Letter

On behalf of the Massachusetts School Building Authority (MSBA) and our citizens, I want to thank you for your interest in the MSBA and our bond program. Your investments in our bonds help us provide incredible K-12 public school buildings to school children all across the Commonwealth. As an issuer, we are committed to doing everything we can to maintain our high bond ratings. We are also committed to being as transparent as possible, and our new dedicated investor websites embodies that commitment.

I hope you find the new website a useful tool as you research the MSBA and its credit fundamentals. Please also feel free to contact me with any suggestions for how we can be more helpful to our bond investors.

Jennifer Gonzalez
Jennifer Gonzalez
Chief Financial Officer