During fiscal year 1997, these benefits paid amounted to $79,840,000. There are 21,991 participants currently
eligible to receive benefits.

16. Deferred Compensation Plan (Plan):

The State offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code Section 457. The Plan, available to all State employees, permits them to defer a portion of their salary until
future years. Participation in the plan is optional. The deferred compensation is not available to employees until
termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the Plan,
all property and rights purchased with those amounts, and all income attributable to those amounts, property or
rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the
State subject only to the claims of the government's general creditors. Participants' rights under the Plan are equal
to those of general creditors of the State in an amount equal to the fair value of the deferred account for each
participant. The Plan is accounted for as an Agency Fund. As allowed under recent IRS regulations, the State is
considering transferring the assets of the deferred compensation plan to a trust fund.

It is the opinion of the State's after consulting with legal counsel, that the State has no liability for losses under
the Plan, but does have the duty of due care that would be required of an ordinary prudent investor. The State
believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.

Investments are managed by the Plan's third party administrator under one of several investment options, or a
combination thereof. The choice of the investment option(s) is made by the participants.

17. Commitments:

The State leases office space under various agreements that are accounted for as operating leases. Many of the
agreements contain rent escalation clauses and renewal options. Rent expenditures for fiscal year 1997 were
approximately $35,378,000. Future lease commitments under these agreements as of June 30, 1997, are as follows
(amounts expressed in thousands).

Years ending
____________________June 30,______Amounts

1998................................................................................................ $ 32,941

1999................................................................................................ 28,467

2000................................................................................................ 25,537

2001................................................................................................ 19,964

2002................................................................................................ 11,827

2003 and thereafter..................................................................... 14,754

$133,490

As of June 30, 1997, the State had commitments of approximately $350,000,000 for the completion of projects
under construction.

As of June 30, 1997, the Department of Transportation and Maryland Transportation Authority had
commitments of approximately $1,036,539,000, and $89,000,000, respectively, for construction of highway and mass
transit facilities. Approximately 47% of future expenditures related to the Department of Transportation
commitments are expected to be reimbursed from proceeds of approved Federal grants when the actual costs are
incurred. The remaining portion will be funded by other financial resources of the Department of Transportation.

The Department of Transportation, as lessor, leases space at various marine terminals, airport facilities and
office space pursuant to various operating leases. Minimum future rental revenues are as follows (amounts
expressed in thousands).

Years ending Noncancellable Operating Leases
June 30, Minimum Future Rentals

1998.................................................... $ 53,652

1999.................................................... 47,775

2000.................................................... 44,781

2001.................................................... 40,598

2002.................................................... 34,410

2003 and thereafter......................... 91,765

______________________\______$312,981

Total minimum future rental revenues do not include contingent rentals that may be received under certain
concession leases on the basis of a percentage of the concessionaire's gross revenue in excess of stipulated

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