BONDED INDEBTEDNESS fiscal year 1967

	Bonds Outstanding 6/30/66 %	Bonds Issued During Year	%	Bonds Redeemed During Year		%	Interest Paid During Year	%	Bonds Outstanding 6/30/67	%	Bonds Authorized But Unissued 6/30/67	%
GENERAL OBLIGATION BONDS:
General Construction Bonds	$161,397,748 43	$22,203,600	23	$12,357,536		44	4,590,864	40	$$171,243,812	39	$95,747,679	28
Local Purpose Bonds.....	50,796,000 14	43,180,000	45	3,562,000		13	1,785,069	15	90,414,000	20	166,896,000	49
General Public School
Construction Bonds. . . .	138,241,000 37	28,380,000	30	10,922,000		39	4,389,445	38	155,699,000	35	70,025,000	20
State Agency and Political
Sub-Division Bonds . . .	24,124,252 06	2,021,400	02	1,334,464		04	748,509	07	24,811,188	06	11,221,600	03
Total General
Obligation Bonds . . .	374,559,000 100	$95,785,000	100	$28,176,000		100	$11,513,887	100	$442,168,000	100	$343,890,279	100
STATE ROADS COMMISSION OF
MARYLAND (SPECIFIC TAX
REVENUE BONDS):
State Highway
Construction Bonds. . . .	$260,568,000 91	$42,000,000	94	$14,134,000		88	$8,500,258	91	$288,434,000	92	$71,566,000	75
County Highway
Construction Bonds. . . .	25,779,000 09	2,840,000	06	1,890,000		12	805,710	09	26,729,000	08	23,271,000	25
Total Limited
Obligation Bonds. .	$286,347,000 100	$44,840,000	100	$16,024,000		100	$9,305,968	100	$315,163,000	100	$94,837,000	100
The tax supported Public Debt of the State of Maryland is divided into two major categories: General obligation bonds that carry the full faith and credit of the State; and limited obligation bonds issued by the State Roads Commission and pay- able out of highway revenue. Both of these categories of bonds are redeemed over a period of fifteen years and are well secured by dedicated revenues. General Obligation Bonds are further categorized and secured by revenues as follows: A. General Construction Bonds and Local Purpose Bonds, representing 59% of the Bonds outstanding, are fully secured by the revenue from the State Real and Personal Property Taxes. B. General Public School Construction Bonds, representing 35% of the Bonds outstanding, are secured by revenues as follows: 1. Payment of principal and interest on bonds issued by the State prior to January 1, 1958 is made by the Counties and Baltimore City to the State from local taxes levied. Payment of principal and interest on bonds issued by the State on and after January 1, 1958 is made through deductions by the Comptroller of the Treasury from funds due said Counties and Baltimore City under the applicable provisions of State Law relating to the Income Tax, the Tax on Racing, the Recordation Tax, the Tax on Amusements, the License Tax, and the Incentive Fund on School Buildings. These pay- ments are to be made within fourteen years from the date of the issuance of the Bond Certificates. 2. If there is not enough revenue from sources indicated in paragraph one above to cover principal and interest the difference must be included by the State in the Real and Personal Property Tax levy. C. State Agency and Political Sub-Division Bonds, representing 6% of the Bonds outstanding, are secured by revenues as follows: 1. On bonds issued covering construction for the Depart- ment of Motor Vehicles and the Department of Mary- land State Police payment of principal and interest is made to the State from fines and other receipts of the Department of Motor Vehicles. 2. On bonds issued for the Maryland Port Authority payments of principal and interest is made to the State from the 1/2 of 1%* distribution of Corporation Income Tax. 3. On bonds issued covering construction for the Depart- ment of Employment Security payment of principal					and interest is made to the State from annual rent received from the United States Department of Labor. 4. If there is not enough revenue from sources indicated in paragraphs one thru three above to cover principal and interest the difference must be included by the State in the Real and Personal Property Tax levy. All monies received from the State Real and Personal Property Taxes and all payments received from State Agencies and Political Sub-Divisions as outlined above are placed in the Annuity Bond Fund which is set up with a separate account for each Bond Act enacted by the General Assembly. All principal and interest on General Obligation Bonds is paid from this fund. State Roads Commission Bonds are limited obligation bonds and are repayable from specified tax revenues. These bonds fall into two classifications and are secured by revenues as follows: A. State Highway Construction Bonds. The principal and interest on these bonds is paid from the following sources: 1. That portion of the proceeds of the excise tax on the issuance of certificates of title to motor vehicles as is represented by a rate of 2% of the fair market value of motor vehicles. 2. That portion of the 50% share of the Gasoline Tax Fund as is represented by the proceeds of the gasoline tax imposed at the rate of six cents per gallon of motor vehicle fuels. 3. That portion of the proceeds of the additional one cent per gallon increase in gasoline license taxes imposed by the laws of Maryland of 1964 and allocated to the Commission. B. County Highway Construction Bonds. The principal and interest on these bonds is paid from the following sources: 1. The 20% portion?of the six cents per gallon Gasoline Tax Fund that is distributable to Counties and Munici- palities within Counties. 2. The 20% portion of the Motor Vehicle Revenue Fund that is distributable to Counties and Municipalities within Counties. Funds necessary to meet the Debt Service Requirements on these Bonds must be transferred, by the Comptroller, to the Sinking Funds set up for their retirement prior to the use of these revenues for any other purpose or their distribution, by the State Roads Commission, to the Counties and Municipalities within Counties.

t Included in General Obligation Bonds Authorized but Unissued at 6/30/67 is $206,596,000 authorized by the General Assembly

during the 1967 session.
* This item was increased to 3/4 of 1%, effective July 1, 1967, by Chapter 574 of the Acts of 1967.