The Treasurer and Receiver-General is an elected, constitutional officer of the Commonwealth. The Treasurer has direct jurisdiction over the Office of the Treasurer and the Emergency Finance Board. In addition, the Treasurer is the chairman of the State Lottery Commission, which is within the Office of the Treasurer. Although not under the direction of the Treasurer, the Massachusetts Cultural Council is also budgeted within the Office of the Treasurer.

The Treasurer's Office is responsible for a variety of critical financial functions, including: receiving and managing all monies paid to the Commonwealth; issuing and managing the state's long-term debt; issuing short-term debt and managing the Commonwealth's cash flow; paying retirees and investing the state's pension funds; and, in conjunction with the Comptroller's Office, processing and paying the Commonwealth's bills.

The Treasurer’s pension responsibilities are managed by the State Board of Retirement, which administers the pension system for state employees and retirees. The Commonwealth's pension obligations include: retirement benefits for retired state employees and teachers and retirement benefits for certain classes of non-contributory employees. The Pension Reserves Investment Trust (PRIT) Fund is the investment reserve fund for the Commonwealth, and is managed by the Pension Reserves Investment Management Board. Investment income from PRIT funds the operation of the State Retirement Board through an off-budget trust account.

The State Lottery Commission generates and distributes revenue to cities and towns as unrestricted local aid. In Fiscal Year 2000, the lottery distribution will increase to $670 million. This increase is a result of the agreement to eliminate the cap on the amount of lottery revenue distributed to cities and towns, additional revenue growth due to increased instant ticket sales, the implementation of the multi-jurisdictional lottery game, and the growth in Keno revenue. Fiscal Year 2000 is the last year of the lottery cap. In subsequent years, the distribution to cities and towns will equal the prior year’s distribution, plus new growth in lottery revenues.

The Massachusetts Cultural Council is committed to providing centralized assistance to the arts, sciences, and humanities programs in communities across the Commonwealth. The Council provides grants to support the public programs and educational services of nonprofit cultural organizations, local cultural councils, and individual artists. Emphasis is placed on supporting programs that serve young people, elders, and underserved communities.

The amount recommended for Fiscal Year 2000 will enable the Treasurer and Receiver-General to achieve its missions as outlined above.

As a means of expanding community-based cultural initiatives, such as "YouthReach" and "Science in the Community", $750,000 has been earmarked in the Safe and Healthy Schools line item (7061-9611) at the Department of Education.

The Fiscal Year 2000 recommendation for pensions reflects a savings of $55.3 million attributable to the strong performance of the Pension Reserve Investment Trust Fund.