II 

Calendar No. 204 

112TH CONGRESS 

1ST SESSION S. 1723 

To provide for teacher and first responder stabilization. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 17, 2011 

Mr. MENENDEZ (for himself, Ms. STABENOW, Mr. CASEY, Mr. REID, Mr. 

HARKIN, Mr. LEAHY, Mr. BLUMENTHAL, and Mrs. FEINSTEIN) introduced the following bill; which was read the first time 

OCTOBER 18, 2011 

Read the second time and placed on the calendar 

A BILL 

To provide for teacher and first responder stabilization. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Teachers and First 

5 Responders Back to Work Act of 2011’’. 


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1 TITLE I—TEACHER 

2 STABILIZATION 

3 SEC. 101. PURPOSE. 

4 The purpose of this title is to provide funds to States 

5 to prevent teacher layoffs and support the creation of ad6 ditional jobs in public early childhood, elementary, and 

7 secondary education in the 2011–2012 and 2012–2013 

8 school years. 

9 SEC. 102. GRANTS FOR THE OUTLYING AREAS AND THE 

10 SECRETARY OF THE INTERIOR; AVAILABILITY 

11 OF FUNDS. 

12 (a) RESERVATION OF FUNDS.—From the amount ap13 propriated to carry out this title under section 111, the 

14 Secretary— 

15 (1) shall reserve up to one-half of one percent 

16 to provide assistance to the outlying areas on the 

17 basis of their respective needs, as determined by the 

18 Secretary, for activities consistent with this part 

19 under such terms and conditions as the Secretary 

20 may determine; 

21 (2) shall reserve up to one-half of one percent 

22 to provide assistance to the Secretary of the Interior 

23 to carry out activities consistent with this part, in 

24 schools operated or funded by the Bureau of Indian 

25 Education; and 


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1 (3) may reserve up to $2,000,000 for adminis2 tration and oversight of this part, including program 

3 evaluation. 

4 (b) AVAILABILITY OF FUNDS.—Funds made avail5 able under section 111 shall remain available to the Sec6 retary until September 30, 2012. 

7 SEC. 103. STATE ALLOCATION. 

8 (a) ALLOCATION.—After reserving funds under sec9 tion 102(a), the Secretary shall allocate to the States— 

10 (1) 60 percent on the basis of their relative 

11 population of individuals aged 5 through 17; and 

12 (2) 40 percent on the basis of their relative 

13 total population. 

14 (b) AWARDS.—From the funds allocated under sub15 section (a), the Secretary shall make a grant to the Gov16 ernor of each State who submits an approvable application 

17 under section 104. 

18 (c) ALTERNATE DISTRIBUTION OF FUNDS.— 

19 (1) IN GENERAL.—If, within 30 days after the 

20 date of enactment of this Act, a Governor has not 

21 submitted an approvable application to the Sec22 retary, the Secretary shall, consistent with para23 graph (2), provide for funds allocated to that State 

24 to be distributed to another entity or other entities 

25 in the State for the support of early childhood, eleVerDate Mar 15 2010 01:01 Oct 19, 2011 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1723.PCS S1723

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1 mentary, and secondary education, under such terms 

2 and conditions as the Secretary may establish. 

3 (2) MAINTENANCE OF EFFORT.— 

4 (A) GOVERNOR ASSURANCE.—The Sec5 retary shall not allocate funds under paragraph 

6 (1) unless the Governor of the State provides 

7 an assurance to the Secretary that the State 

8 will, for fiscal years 2012 and 2013, meet the 

9 requirements of section 108. 

10 (B) SPECIAL RULE.—Notwithstanding sub11 paragraph (A), the Secretary may allocate up to 

12 50 percent of the funds that are available to the 

13 State under paragraph (1) to another entity or 

14 entities in the State, provided that the State 

15 educational agency submits data to the Sec16 retary demonstrating that the State will for fis17 cal year 2012 meet the requirements of section 

18 108(a) or the Secretary otherwise determines 

19 that the State will meet those requirements, or 

20 such comparable requirements as the Secretary 

21 may establish, for that year. 

22 (3) REQUIREMENTS.—An entity that receives 

23 funds under paragraph (1) shall use those funds in 

24 accordance with the requirements of this title. 


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1 (d) REALLOCATION.—If a State does not receive 

2 funding under this title or only receives a portion of its 

3 allocation under subsection (c), the Secretary shall reallo4 cate the State’s entire allocation or the remaining portion 

5 of its allocation, as the case may be, to the remaining 

6 States in accordance with subsection (a). 

7 SEC. 104. STATE APPLICATION. 

8 The Governor of a State desiring to receive a grant 

9 under this title shall submit an application to the Sec10 retary within 30 days of the date of enactment of this Act, 

11 in such manner, and containing such information, as the 

12 Secretary may reasonably require to determine the State’s 

13 compliance with applicable provisions of law. 

14 SEC. 105. STATE RESERVATION AND RESPONSIBILITIES. 

15 (a) RESERVATION.—Each State receiving a grant 

16 under section 103(b) may reserve— 

17 (1) not more than 10 percent of the grant 

18 funds for awards to State-funded early learning pro19 grams; and 

20 (2) not more than 2 percent of the grant funds 

21 for the administrative costs of carrying out its re22 sponsibilities under this title. 

23 (b) STATE RESPONSIBILITIES.—Each State receiving 

24 a grant under this title shall, after reserving any funds 

25 under subsection (a)— 


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1 (1) use the remaining grant funds only for 

2 awards to local educational agencies for the support 

3 of early childhood, elementary, and secondary edu4 cation; and 

5 (2) distribute those funds, through subgrants, 

6 to its local educational agencies by distributing— 

7 (A) 60 percent on the basis of the local 

8 educational agencies’ relative shares of enroll9 ment; and 

10 (B) 40 percent on the basis of the local 

11 educational agencies’ relative shares of funds 

12 received under part A of title I of the Elemen13 tary and Secondary Education Act of 1965 for 

14 fiscal year 2011; and 

15 (3) make those funds available to local edu16 cational agencies no later than 100 days after receiv17 ing a grant from the Secretary. 

18 (c) PROHIBITIONS.—A State shall not use funds re19 ceived under this title to directly or indirectly— 

20 (1) establish, restore, or supplement a rainy-day 

21 fund; 

22 (2) supplant State funds in a manner that has 

23 the effect of establishing, restoring, or 

24 supplementing a rainy-day fund; 


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1 (3) reduce or retire debt obligations incurred by 

2 the State; or 

3 (4) supplant State funds in a manner that has 

4 the effect of reducing or retiring debt obligations in5 curred by the State. 

6 SEC. 106. LOCAL EDUCATIONAL AGENCIES. 

7 Each local educational agency that receives a 

8 subgrant under this title— 

9 (1) shall use the subgrant funds only for com10 pensation and benefits and other expenses, such as 

11 support services, necessary to retain existing employ12 ees, recall or rehire former employees, or hire new 

13 employees to provide early childhood, elementary, or 

14 secondary educational and related services; 

15 (2) shall obligate those funds no later than Sep16 tember 30, 2013; and 

17 (3) may not use those funds for general admin18 istrative expenses or for other support services or ex19 penditures, as those terms are defined by the Na20 tional Center for Education Statistics in the Com21 mon Core of Data, as of the date of enactment of 

22 this Act. 

23 SEC. 107. EARLY LEARNING. 

24 Each State-funded early learning program that re25 ceives funds under this title shall— 


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1 (1) use those funds only for compensation, ben2 efits, and other expenses, such as support services, 

3 necessary to retain early childhood educators, recall 

4 or rehire former early childhood educators, or hire 

5 new early childhood educators to provide early learn6 ing services; and 

7 (2) obligate those funds no later than Sep8 tember 30, 2013. 

9 SEC. 108. MAINTENANCE OF EFFORT. 

10 (a) The Secretary shall not allocate funds to a State 

11 under this title unless the State provides an assurance to 

12 the Secretary that— 

13 (1) for State fiscal year 2012— 

14 (A) the State will maintain State support 

15 for early childhood, elementary, and secondary 

16 education (in the aggregate or on the basis of 

17 expenditure per pupil) and for public institu18 tions of higher education (not including support 

19 for capital projects or for research and develop20 ment or tuition and fees paid by students) at 

21 not less than the level of such support for each 

22 of the 2 categories for State fiscal year 2011; 

23 or 

24 (B) the State will maintain State support 

25 for early childhood, elementary, and secondary 


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1 education and for public institutions of higher 

2 education (not including support for capital 

3 projects or for research and development or tui4 tion and fees paid by students) at a percentage 

5 of the total revenues available to the State that 

6 is equal to or greater than the percentage pro7 vided for State fiscal year 2011; and 

8 (2) for State fiscal year 2013— 

9 (A) the State will maintain State support 

10 for early childhood, elementary, and secondary 

11 education (in the aggregate or on the basis of 

12 expenditure per pupil) and for public institu13 tions of higher education (not including support 

14 for capital projects or for research and develop15 ment or tuition and fees paid by students) at 

16 not less than the level of such support for each 

17 of the two categories for State fiscal year 2012; 

18 or 

19 (B) the State will maintain State support 

20 for early childhood, elementary, and secondary 

21 education and for public institutions of higher 

22 education (not including support for capital 

23 projects or for research and development or tui24 tion and fees paid by students) at a percentage 

25 of the total revenues available to the State that 


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1 is equal to or greater than the percentage pro2 vided for State fiscal year 2012. 

3 (b) WAIVER.—The Secretary may waive the require4 ments of this section if the Secretary determines that a 

5 waiver would be equitable due to— 

6 (1) exceptional or uncontrollable circumstances, 

7 such as a natural disaster; or 

8 (2) a precipitous decline in the financial re9 sources of the State. 

10 SEC. 109. REPORTING. 

11 Each State that receives a grant under this title shall 

12 submit, on an annual basis, a report to the Secretary that 

13 contains— 

14 (1) a description of how funds received under 

15 this part were expended or obligated; and 

16 (2) an estimate of the number of jobs supported 

17 by the State using funds received under this title. 

18 SEC. 110. DEFINITIONS. 

19 In this title: 

20 (1) Except as otherwise provided, the terms 

21 ‘‘local educational agency’’, ‘‘outlying area’’, ‘‘Sec22 retary’’, ‘‘State’’, and ‘‘State educational agency’’ 

23 have the meanings given those terms in section 9101 

24 of the Elementary and Secondary Education Act of 

25 1965 (20 U.S.C. 7801). 


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1 (2) The term ‘‘State’’ does not include an out2 lying area. 

3 (3) The term ‘‘early childhood educator’’ means 

4 an individual who— 

5 (A) works directly with children in a State6 funded early learning program in a low-income 

7 community; 

8 (B) is involved directly in the care, devel9 opment, and education of infants, toddlers, or 

10 young children age five and under; and 

11 (C) has completed a baccalaureate or ad12 vanced degree in early childhood development or 

13 early childhood education, or in a field related 

14 to early childhood education. 

15 (4) The term ‘‘State-funded early learning pro16 gram’’ means a program that provides educational 

17 services to children from birth to kindergarten entry 

18 and receives funding from the State. 

19 SEC. 111. AUTHORIZATION OF APPROPRIATIONS. 

20 There are authorized to be appropriated, and there 

21 are appropriated, $30,000,000,000 to carry out this title 

22 for fiscal year 2012. 


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1 TITLE II—FIRST RESPONDER 

2 STABILIZATION 

3 SEC. 201. PURPOSE. 

4 The purpose of this title is to provide funds to States 

5 and localities to prevent layoffs of, and support the cre6 ation of additional jobs for, law enforcement officers and 

7 other first responders. 

8 SEC. 202. GRANT PROGRAM. 

9 The Attorney General shall carry out a competitive 

10 grant program pursuant to section 1701 of title I of the 

11 Omnibus Crime Control and Safe Streets Act of 1968 (42 

12 U.S.C. 3796dd) for hiring, rehiring, or retention of career 

13 law enforcement officers under part Q of such title. Grants 

14 awarded under this section shall not be subject to sub15 sections (g) or (i) of section 1701 or to section 1704 of 

16 such Act (42 U.S.C. 3796dd–3(c)). 

17 SEC. 203. APPROPRIATIONS. 

18 There are hereby appropriated to the Community 

19 Oriented Policing Stabilization Fund out of any money in 

20 the Treasury not otherwise obligated, $5,000,000,000, to 

21 remain available until September 30, 2012, of which 

22 $4,000,000,000 shall be for the Attorney General to carry 

23 out the competitive grant program under section 202; and 

24 of which $1,000,000,000 shall be transferred by the Attor25 ney General to a First Responder Stabilization Fund from 


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1 which the Secretary of Homeland Security shall make 

2 competitive grants for hiring, rehiring, or retention pursu3 ant to the Federal Fire Prevention and Control Act of 

4 1974 (15 U.S.C. 2201 et seq.), to carry out section 34 

5 of such Act (15 U.S.C. 2229a). In making such grants, 

6 the Secretary may grant waivers from the requirements 

7 in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E), (c)(1), 

8 (c)(2), and (c)(4)(A) of section 34. Of the amounts appro9 priated herein, not to exceed $8,000,000 shall be for ad10 ministrative costs of the Attorney General, and not to ex11 ceed $2,000,000 shall be for administrative costs of the 

12 Secretary of Homeland Security. 

13 TITLE III—SURTAX ON 

14 MILLIONAIRES 

15 SEC. 301. SURTAX ON MILLIONAIRES. 

16 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

17 Internal Revenue Code of 1986 is amended by adding at 

18 the end the following new part: 

19 ‘‘PART VIII—SURTAX ON MILLIONAIRES 

‘‘Sec. 59B. Surtax on millionaires. 

20 ‘‘SEC. 59B. SURTAX ON MILLIONAIRES. 

21 ‘‘(a) GENERAL RULE.—In the case of a taxpayer 

22 other than a corporation for any taxable year beginning 

23 after 2012, there is hereby imposed (in addition to any 

24 other tax imposed by this subtitle) a tax equal to 0.5 perVerDate Mar 15 2010 01:01 Oct 19, 2011 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S1723.PCS S1723

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1 cent of so much of the modified adjusted gross income 

2 of the taxpayer for such taxable year as exceeds 

3 $1,000,000 ($500,000, in the case of a married individual 

4 filing a separate return). 

5 ‘‘(b) INFLATION ADJUSTMENT.— 

6 ‘‘(1) IN GENERAL.—In the case of any taxable 

7 year beginning after 2013, each dollar amount under 

8 subsection (a) shall be increased by an amount equal 

9 to— 

10 ‘‘(A) such dollar amount, multiplied by 

11 ‘‘(B) the cost-of-living adjustment deter12 mined under section 1(f)(3) for the calendar 

13 year in which the taxable year begins, deter14 mined by substituting ‘calendar year 2011’ for 

15 ‘calendar year 1992’ in subparagraph (B) 

16 thereof. 

17 ‘‘(2) ROUNDING.—If any amount as adjusted 

18 under paragraph (1) is not a multiple of $10,000, 

19 such amount shall be rounded to the next highest 

20 multiple of $10,000. 

21 ‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 

22 purposes of this section, the term ‘modified adjusted gross 

23 income’ means adjusted gross income reduced by any de24 duction (not taken into account in determining adjusted 

25 gross income) allowed for investment interest (as defined 


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1 in section 163(d)). In the case of an estate or trust, ad2 justed gross income shall be determined as provided in sec3 tion 67(e). 

4 ‘‘(d) SPECIAL RULES.— 

5 ‘‘(1) NONRESIDENT ALIEN.—In the case of a 

6 nonresident alien individual, only amounts taken 

7 into account in connection with the tax imposed 

8 under section 871(b) shall be taken into account 

9 under this section. 

10 ‘‘(2) CITIZENS AND RESIDENTS LIVING

11 ABROAD.—The dollar amount in effect under sub12 section (a) shall be decreased by the excess of— 

13 ‘‘(A) the amounts excluded from the tax14 payer’s gross income under section 911, over 

15 ‘‘(B) the amounts of any deductions or ex16 clusions disallowed under section 911(d)(6) 

17 with respect to the amounts described in sub18 paragraph (A). 

19 ‘‘(3) CHARITABLE TRUSTS.—Subsection (a) 

20 shall not apply to a trust all the unexpired interests 

21 in which are devoted to one or more of the purposes 

22 described in section 170(c)(2)(B). 

23 ‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS

24 CHAPTER FOR CERTAIN PURPOSES.—The tax im25 posed under this section shall not be treated as tax 


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1 imposed by this chapter for purposes of determining 

2 the amount of any credit under this chapter or for 

3 purposes of section 55.’’. 

4 (b) CLERICAL AMENDMENT.—The table of parts for 

5 subchapter A of chapter 1 of the Internal Revenue Code 

6 of 1986 is amended by adding at the end the following 

7 new item: 

‘‘PART VIII. SURTAX ON MILLIONAIRES.’’. 

8 (c) SECTION 15 NOT TO APPLY.—The amendment 

9 made by subsection (a) shall not be treated as a change 

10 in a rate of tax for purposes of section 15 of the Internal 

11 Revenue Code of 1986. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2012. 


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Calendar No. 204 

112TH CONGRESS 

1ST SESSION S. 1723 

A BILL 

To provide for teacher and first responder 

stabilization. 

OCTOBER 18, 2011 

Read the second time and placed on the calendar 


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