Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
Commissioner Stephen Crosby, Chair
Massachusetts Gaming Commission
84 State St., Suite 720, Boston
Dear Chairman Crosby and Honorable Commissioners,
On behalf of the cities and towns of the Commonwealth, we are writing to you regarding the Commission’s February 20 vote to temporarily divert casino and slots licensing fee monies from the Community Mitigation Fund to cover Commission operating costs. We have serious concerns regarding this diversion, and respectfully request that the Commission adopt an alternative financial plan that allows Licensing Fund money to be immediately allocated to the Community Mitigation Fund upon receipt, subsequent to the Commission’s required repayment of the $20 million start-up appropriation from the state’s Stabilization Fund.
As discussed at the Commission’s meeting on February 20, the Commission expects to receive a total of $195 million in the current fiscal year from casino and slots licensing fee payments. The Commission approved a plan at the meeting to transfer $17.5 million from these fees to the Gaming Control Fund to cover an FY14 Commission operating budget gap of approximately $5 million and to allow for some operating funds for FY15 as cost assessment regulations are implemented and phased in. The Commission would then transfer $175 million to the Licensing Fund, using $20 million to re-pay the Stabilization Fund loan and allocating the remaining monies to eight of the nine funds created by statute under the Expanded Gaming Act of 2011, using a formula contained in the statute. The ninth fund, the Community Mitigation Fund, would not be allocated any monies at this time but would instead be allocated the statutorily required 10 percent of Licensing Fund monies, or $17.5 million, within 18 months. The Commission’s stated rationale for withholding monies from the Community Mitigation Fund was that the Commission had no plans to disburse any monies from the fund until gaming establishments are fully operational.
The Legislature clearly intended that monies from the Community Mitigation Fund should be available to offset unintended impacts to host and surrounding communities during both the construction and operational phases. Section 61B of Chapter 23 of Massachusetts General Law states that:
“The commission shall administer the fund and, without further appropriation, shall expend monies in the fund to assist the host community and surrounding communities in offsetting costs related to the construction and operation of a gaming establishment including, but not limited to, communities and water and sewer districts in the vicinity of a gaming establishment, local and regional education, transportation, infrastructure, housing, environmental issues and public safety, including the office of the county district attorney, police, fire and emergency services.”
However, under the Commission’s plan approved on February 20, no such monies would be available over the next 18 months, despite a statutory directive that the Commission shall expend monies from the Fund to mitigate construction impacts. Due to the unforeseen nature of such impacts, we believe that monies must be available in the Fund and that the Commission must be open to expending such monies prior to the operational phase of gaming facilities in order to mitigate impacts as needed.
We respectfully request that the Commission revisit its decision, instead adopting an alternative financial plan that fully funds the Community Mitigation Fund to allow for disbursements as needed, consistent with legislative intent. If you have any questions, please do not hesitate to have your staff contact Catherine Rollins of the MMA staff at (617) 426-7272 at any time.
Thank you very much for your attention to this matter. We look forward to your reconsideration of your recent vote, and your adoption of a revised financial plan that protects the interests of cities and towns.
Sincerely,
Geoffrey C. Beckwith
Executive Director, MMA
cc: His Excellency Deval Patrick, Governor of the Commonwealth Secretary Glen Shor, Executive Office for Administration and Finance The Honorable Robert DeLeo, Speaker of the House
The Honorable Therese Murray, Senate President