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THE GALAXY FUND
GALAXY TAX-EXEMPT BOND FUND
GALAXY NEW JERSEY MUNICIPAL BOND FUND
GALAXY NEW YORK MUNICIPAL BOND FUND
GALAXY CONNECTICUT MUNICIPAL BOND FUND
GALAXY MASSACHUSETTS MUNICIPAL BOND FUND
GALAXY RHODE ISLAND MUNICIPAL BOND FUND
SUPPLEMENT DATED SEPTEMBER 28, 1999
TO STATEMENT OF ADDITIONAL INFORMATION DATED FEBRUARY 28, 1999
The following Taxable Yield Equivalency Tables are inserted after the New
York State and City Taxable Equivalency Table on page 82 of the Statement of
Additional Information:
TAX-EQUIVALENCY TABLES--CONNECTICUT MUNICIPAL BOND, MASSACHUSETTS MUNICIPAL
BOND, AND RHODE ISLAND MUNICIPAL BOND FUNDS
The Connecticut Municipal Bond, Massachusetts Municipal Bond and Rhode
Island Municipal Bond Funds may use tax-equivalency tables in advertising and
sales literature. The interest earned by the Municipal Securities in the Funds'
respective portfolios generally remains free from federal regular income tax,
and from the regular personal income tax imposed by Connecticut, Massachusetts
and Rhode Island, respectively. Some portion of the Funds' income may, however,
be subject to the federal alternative minimum tax and state and local regular or
alternative minimum taxes. As the tables below indicate, "tax-free" investments
may be attractive choices for investors, particularly in times of narrow spreads
between "tax-free" and taxable yields.
The charts below are for illustrative purposes only and use tax brackets
that were in effect beginning January 1, 1999. These are not indicators of past
or future performance of the Connecticut Municipal Bond, Massachusetts Municipal
Bond and Rhode Island Municipal Bond Funds.
Note: The maximum marginal tax rate for each bracket was used in calculating
the taxable yield equivalent for each chart. Furthermore, additional state and
local taxes paid on comparable taxable investments were not used to increase
federal deductions. Moreover, the charts do not reflect the possible effect of
all items relating to the effective marginal tax rate, such as alternative
minimum tax, personal exemptions, tax credits, the phase-out of exemptions or
credits, itemized deductions (including the federal deduction for state taxes
paid) or the possible partial disallowance of deductions.
Connecticut Note: The charts below do not address taxable equivalent yields
applicable to married taxpayers filing separate returns or heads of households.
Investors are urged to consult their own tax advisors as to these matters.
SAITXBDSTICK1(9/99)
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TAXABLE YIELD EQUIVALENT FOR 1999
STATE OF CONNECTICUT
Federal Tax Bracket: 15.00% 28.00% 31.00% 36.00% 39.60%
Combined Federal and
State: 19.50% 32.50% 35.50% 40.50% 44.10%
Joint Return: $1-43,050 $43,051-104,050 $104,051-158,550 $158,551-283,150 Over $283,151
Single Return: $1-25,750 $25,751-62,450 $62,451-130,250 $130,251-283,150 Over $283,151
Tax-Exempt Yield:
TAXABLE YIELD EQUIVALENT
1.50% 1.86% 2.22% 2.33% 2.52% 2.68%
2.00% 2.48% 2.96% 3.10% 3.36% 3.58%
2.50% 3.11% 3.70% 3.88% 4.20% 4.47%
3.00% 3.73% 4.44% 4.65% 5.04% 5.37%
3.50% 4.35% 5.19% 5.43% 5.88% 6.26%
4.00% 4.97% 5.93% 6.20% 6.72% 7.16%
4.50% 5.59% 6.67% 6.98% 7.56% 8.05%
5.00% 6.21% 7.41% 7.75% 8.40% 8.94%
5.50% 6.83% 8.15% 8.53% 9.24% 9.84%
6.00% 7.45% 8.89% 9.30% 10.08% 10.73%
TAXABLE YIELD EQUIVALENT FOR 1999
COMMONWEALTH OF MASSACHUSETTS
Federal Tax Bracket: 15.00% 28.00% 31.00% 36.00% 39.60%
Combined Federal and
State: 20.95% 33.95% 36.95% 41.95% 45.55%
Joint Return: $1-43,050 $43,051-104,050 $104,051-158,550 $158,551-283,150 Over $283,151
Single Return: $1-25,750 $25,751-62,450 $62,451-130,250 $130,251-283,150 Over $283,151
Tax-Exempt Yield:
TAXABLE YIELD EQUIVALENT
1.50% 1.90% 2.27% 2.38% 2.58% 2.75%
2.00% 2.53% 3.03% 3.17% 3.45% 3.67%
2.50% 3.16% 3.79% 3.97% 4.31% 4.59%
3.00% 3.80% 4.54% 4.76% 5.17% 5.51%
3.50% 4.43% 5.30% 5.55% 6.03% 6.43%
4.00% 5.06% 6.06% 6.34% 6.89% 7.35%
4.50% 5.69% 6.81% 7.14% 7.75% 8.26%
5.00% 6.33% 7.57% 7.93% 8.61% 9.18%
5.50% 6.96% 8.33% 8.72% 9.47% 10.10%
6.00% 7.59% 9.08% 9.52% 10.34% 11.02%
TAXABLE YIELD EQUIVALENT FOR 1999
STATE OF RHODE ISLAND
Federal Tax Bracket: 15.00% 28.00% 31.00% 36.00% 39.60%
Combined Federal and
State: 18.98% 35.42% 39.22% 45.54% 50.09%
Joint Return: $0-43,050 $43,051-104,050 $104,051-158,550 $158,551-283,150 Over $283,151
Single Return: $0-25,750 $25,751-62,450 $62,451-130,250 $130,251-283,150 Over $283,151
Tax-Exempt Yield:
TAXABLE YIELD EQUIVALENT
1.50% 1.85% 2.32% 2.47% 2.75% 3.01%
2.00% 2.47% 3.10% 3.29% 3.67% 4.01%
2.50% 3.09% 3.87% 4.11% 4.59% 5.01%
3.00% 3.70% 4.65% 4.94% 5.51% 6.01%
3.50% 4.32% 5.42% 5.76% 6.43% 7.01%
4.00% 4.94% 6.19% 6.58% 7.34% 8.01%
4.50% 5.55% 6.97% 7.40% 8.26% 9.02%
5.00% 6.17% 7.74% 8.23% 9.18% 10.02%
5.50% 6.79% 8.52% 9.05% 10.10% 11.02%
6.00% 7.41% 9.29% 9.87% 11.02% 12.02%
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2
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THE GALAXY FUND
GALAXY MONEY MARKET FUND
GALAXY GOVERNMENT FUND
GALAXY U.S. TREASURY FUND
GALAXY TAX-EXEMPT FUND
GALAXY INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
GALAXY CONNECTICUT MUNICIPAL MONEY MARKET FUND
GALAXY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
SUPPLEMENT DATED SEPTEMBER 28, 1999
TO STATEMENT OF ADDITIONAL INFORMATION DATED FEBRUARY 28, 1999
The following Taxable Yield Equivalency Table replaces the existing Taxable
Yield Equivalent Table for the Commonwealth of Massachusetts on page 62 of the
Statement of Additional Information:
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TAXABLE YIELD EQUIVALENT FOR 1999
COMMONWEALTH OF MASSACHUSETTS
Federal Tax Bracket: 15.00% 28.00% 31.00% 36.00% 39.60%
Combined Federal and
State: 20.95% 33.95% 36.95% 41.95% 45.55%
Joint Return: $1-43,050 $43,051-104,050 $104,051-158,550 $158,551-283,150 Over $283,151
Single Return: $1-25,750 $25,751-62,450 $62,451-130,250 $130,251-283,150 Over $283,151
Tax-Exempt Yield:
TAXABLE YIELD EQUIVALENT
1.50% 1.90% 2.27% 2.38% 2.58% 2.75%
2.00% 2.53% 3.03% 3.17% 3.45% 3.67%
2.50% 3.16% 3.79% 3.97% 4.31% 4.59%
3.00% 3.80% 4.54% 4.76% 5.17% 5.51%
3.50% 4.43% 5.30% 5.55% 6.03% 6.43%
4.00% 5.06% 6.06% 6.34% 6.89% 7.35%
4.50% 5.69% 6.81% 7.14% 7.75% 8.26%
5.00% 6.33% 7.57% 7.93% 8.61% 9.18%
5.50% 6.96% 8.33% 8.72% 9.47% 10.10%
6.00% 7.59% 9.08% 9.52% 10.34% 11.02%
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SAIMMSTICK1(9/99)
