BONDED INDEBTEDNESS

Fiscal Year 1970

Bonds	Bonda	Bonds		Interest	Bonds	Bonds Authorized
Outstanding	Issued	Redeemed		Paid	Outstanding	But Unissued
6/30/69 %	During Year %	During Year %		During Year %	6/30/70 %	6/30/70* %
GENERAL OBLIGATION BONDS:
GENERAL CONSTRUCTION BONDS ........ $179,669,044 32 LOCAL PURPOSE AND OTHER BONDS.. 160,236,000 32	$2,000,000 4 8,820,000 20	$15,703,896 40 6,721,000 17		$5,733,524 30 6,451,147 34	$165,965,148 29 182,335,000 32	$242,771,284 34 352,544,654 49
GENERAL PUBLIC SCHOOL
CONSTRUCTION BONDS...................... 170,663,000 30	24,380,000 54	14,042,000 36		5,629,670 29	181,001,000 32	56,130,000 8
STATE AGENCY AND POLITICAL
SUB-DIVISION BONDS........................ 31,612,956 06	10,000,000 22	2,699,104 7		1,296,792 7	38,913,852 7	61,000,000 9
TOTAL GENERAL OBLIGATION
BONDS.......................................... $562,181,000 100	$45,200,000 100	$39,166,000 100		$19,111,133 100	$568,215,000 100	$712,445,938 100
STATE ROADS COMMISSION OF
MARYLAND (SPECIFIC TAX
REVENUE BONDS):
STATE HIGHWAY CONSTRUCTION
BONDS.................................................. $285,900,000 92		$19,600,000 89		$9,557,825 92	$266,300,000 92	$93,700,000 100
COUNTY HIGHWAY CONSTRUCTION
BONDST.............................................. 25,119,000 08		2,415,000 11		790,220 08	22,704,000 08
TOTAL LIMITED
OBLIGATION BONDS................ $311,019,000 100		$22,015,000 100		$10,348,045 100	$289,004,000 100	$93,700,000 100
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. However, under the 1964 legislative enactment of the Hospital Construction Loan participating voluntary non-profit hospitals are to repay these loans to the State over a period of forty years and the funds necessary to cover the resultant difference between bond redemption and loan repayment are obtained from the State's property tax levy. Other enactments by the General Assembly have authorized repayable loans for Area Redevelopment, Airport Redevelopment, and Sanitary Facilities and Sewer Construction. These loans are to be repaid to the State over periods from 15 to 30 years. Of the total bonds outstanding at 6/30/70 $50,125,500 is represented by loans that will be repaid to the State. Along with the authorization of the Outdoor Recreation Land Loan of 1969, the General Assembly enacted an additional one- half of one percent upon every written instrument conveying Title to Real Property offered for record and recorded in the State for redemption of principal and interest on Bonds issued under the program "Open Space". General Obligation Bonds are further categorized and secured by revenues as follows: A. General Construction Bonds and Local Purpose Bonds, representing 61% 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 32% 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. 2. 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 In- come Tax, the Tax on Racing, the Recordation Tax, the Tax on Amusements, the License Tax and School Building Construction Aid Program. These payments are be to made within fourteen years from the date of the issuance of the Bond Certificates. 3. If there is not enough revenues from sources indicated in paragraphs one and two 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 7% 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 tate from the 3/4 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 of motor vehicles as is represented by a rate of 3% of the fair market value of motor vehicles. 2. Since 7/1/69 the portion of the 60% share of the Gasoline Tax Fund represented by the proceeds of the It Gasoline Tax. Prior to 7/1/69 this was 50%of the Gasoline Tax Fund plus all of the additional 1c per gallon Gasoline Tax imposed by the 1964 Laws of Maryland. B. County Highway Construction Bonds. The principal and interest on the bonds is paid from the following sources: Since 7/1/69 this is the 20% portion of the 7c per gallon Gasoline Tax Fund and 20% of the portion of the Motor Vehicles Revenue Fund distributable to Counties and Municipalities within Counties. Prior to 7/1/69 this was 20% portion of the 6c per gallon Gasoline Tax Fund plus 20% of the Motor Vehicles Revenue Fund distributable to Counties and Munici- palities 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.

* Included in General Obligation Bonds Authorized but unissued at 6/30/70 is $144,213,800.00 authorized by the General Assembly during
the 1970 Session.