Mass. Gen. Laws ch. 40 § 5E
To provide for the anticipated costs of funding reimbursements to the commonwealth for unemployment compensation benefits under the provisions of chapter one hundred and fifty-one A, any city, town or district may appropriate in any year an amount not exceeding one-tenth of one per cent of such city's or town's equalized valuation as defined in section one of chapter forty-four, to establish and maintain a special fund to be known as the unemployment compensation fund; provided, however, that no such appropriation may be made at any time when the aggregate amount in such fund equals or exceeds one per cent of such equalized valuation. Any interest shall be added to and become a part of such special fund.
The treasurer of the city, town or district shall be the custodian and administrator of such special fund, and may deposit or invest the fund in such manner as may be legal for other city, town or district funds under the laws of the commonwealth including, without limitation, the Massachusetts Municipal Depository Trust.
The treasurer shall pay from such special fund, including the income thereof, such amounts as the selectmen or other officers authorized to expend money determine to be necessary from time to time to satisfy the liability of the city, town or district, or any instrumentality thereof, in accordance with the unemployment security law of the commonwealth.
Mass. Gen. Laws ch. 40, § 5E