Bonded Indebtedness

Fiscal Year 1974	Bonds		Bonds		Bonds		Interest		Bonds		Bonds Authorized
	Outstanding		Issued		Redeemed		Paid		Outstanding		But Unissued
	6/30/73	%	During Year	%	During Year	%	During Year	%	6/30/74	%	6/30/74*	%
GENERAL OBLIGATION BONDS:
General Construction Bonds..........	.$245,640,728.97	24	$38,405,000.00	24	$14,542.222.40	24	$10,136,644.20	24	$269.503,504.57	24	I 426,009,380.22	28
Local Purpose and Other Bonds.......	. 307,991,000.00	30	9,345,000.00	6	18,012,000.00	30	13,338,525.54	31	299,324,000.00	27	338,584,003.40	23
General Public School Construction
Bonds...........................	. 344,376,000.00	34	114,400,000.00	70	18,125,000.00	30	14,252,597.05	33	440,651,000.00	39	636,935,000.00	43
Slate Agency and Political Subdivision
Bonds...........................	. 120,656,273.03	12			9,143,777.60	16	5,068,669.78	12	111,512,495.43	10	89,250,000.00	6
TOTAL GENERAL OBLIGATION
BONDS........................	1,018,684,000.00	100	162,150,000.00	100	59.823,000. 00	100	$42,796,435.57	100	$120,991,000.00	100	$1.490,778,383.62	100
DEPARTMENT OF TRANSPORTATION
OF MARYLAND:
Consolidated Transportation Bonds.			t 50,000,000.00	51			$1,254,600.00	10	$ 50,000,000.00	14	$677,547,000.00"
State Highway Construction Bonds.	$204,100,000.00	68			$21,500,000.00	88	6,582,300.00	50	182,600,000.00	49		*
County Highway Construction Bonds. . .	. 93.898,000.00	32	47.150,000.00	49	2,902,000.00	12	5,360,082.00	40	138,146,000.00	37		**
TOTAL LIMITED OBLIGATION
BONDS.......................	$297,998,000.00	100	$97,150.000.00	100	$24,402,000.00	100	$13,196,982.00	100	$370,746.000.00	100	$ 677,547,000.00

* Included in General Obligation Bonds Authorized but unissued 6/30/74 is $412,827,100 authorized by the General Assembly during the 1974 Session.

** Total bonds unissued are reduced by outstanding Maryland Port Authority Loans in the amount of $39,853,000.

*** There will be no further state highway construction bond issues.

**** Statutory authorization for issuance of County Highway Construction Bonds expired at June 30, 1968. Additional authorization for a Second Issue was enacted by the Legislature effective
July 1, 1969. Since September 1, 1970 four series of bonds have been issued through June 30, 1974 under this authorization. County Highway Construction Bonds may be issued for any
county so long as debt service requirements for the issue does not exceed one half of the county's annual allocation of Highway Uset Revenues.

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 Department of Transportation (formerly State Roads Commission) and payable out of highway revenue. Both of these categories of bonds are redeemed over a period of fifteen years and are well served 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 Development, 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 6-30-74, 562,312,049.28 is represented by loans that will be repaid to the State. Along with the authorisations 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 re- demption 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 51% of the Bonds outstanding are fully secured by the revenue from the State Real and Personal Property Taxes. B. General Public School Construction Bonds including State Public School Construction Bonds and Capital Improvement Bonds representing 39% of the Bonds outstanding, are secured 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 or 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, and Tax on Racing, the Recordation Tax, the Tax on Amusements, the License Tax and School Building Construction Aid Program. These payments are to be made within fourteen years from the date of the issuance of the Bond Certificates. 3. Effective June 1, 1971, legislation was passed by the General Assembly whereby the State assumed the costs of all future public school construction; and also provided that the State would assume the costs of principal and interest payments for public school construction loans incurred by the Counties and Baltimore City prior to June 30, 1967. Funding for these future costs as well as principal and interest costs on the State Public School Construction and Capital Improvement Loans passed by legislation in 1971, 1972, 1973, and 1974 is provided through General Fund Appropriations made to the Department of Education in the School Building Construction Aid Program and transferred to the Annuity Bond Fund Account. 4. If there is not enough revenue from sources indicated on paragraph one, two and three above to cover principal and in- terest, the difference must be included by the State in the Real and Personal Property Tax Levy. C. State Agency and Political Subdivision Bonds, representing 10% of the Bonds outstanding are secured as follows: 1. On bonds issued covering construction for the Motor Vehicle Administration (formerly the Department of Motor

Vehicles) payment of principal and interest is made to the State from fines and other receipts of the Motor Vehicle Administration. While in prior years Bonds issued for construction for the Maryland State Police were similarly secured, legislation passed by the General Assembly in 1971 authorized all Debt Service on Capital Improve- ments for the Maryland State Police to be paid from the Annuity Bond Fund thereby requiring these bonds to be serviced by the State Property Tax. 2. On bonds issued for the Maryland Port Administration (formerly the Maryland Port Authority), payments of principal and interest is made to the State from 3/4 of 1% distribution of Corporation Income Tax. 3. On bonds issued covering construction for the De- partment of Employment Security, payment of principal and in- terest 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 through 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 Subdivisions 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. Consolidated Transportation Bonds may be issued under this authority provided that receipts credited to the Transportation Trust Fund, (excluding receipts which are not legally applicable to the payment of debt service), less expenses of Departmental opera- tions, in the preceding fiscal year and available for payment of the bonds were equal to at least two times maximum debt service for any future fiscal year of previously issued State Highway Con- struction bonds and Port Authority loans, outstanding Consolidated Transportation bonds, and bonds to be issued. State and County Highway Bonds are limited obligation bonds and are repayable from specified tax revenues. These specified tax revenues are classified as Highway User Revenues (consisting of the 7c portion of a Motor Vehicle Fuel Tax; a 3% portion, i.e., 3/4% of that tax, of a 4% Motor Vehicle Titling Tax; and Motor Vehicle registration fees and other highway user revenues) which are credited to the Transportation Trust Fund and are allocated as follows: 65% to the Department of Transportation, 17 1/2% to Baltimore City, and 17 1/2% to the counties and their municipalities. These bonds fall into two classifications and are secured by revenues as follows: A. State Highway Construction Bonds Part of the 65% share of Highway User Revenues is first applied to debt service for State Highway Construction Bonds, the remainder is available for debt service on Consolidated Trans- portation Bonds. B. County Highway Construction Bonds. The 17 1/2% Highway User Revenue shares of Balti- more City and the Counties and their municipalities are distributable only after providing sinking fund requirements for debt service for county highway construction bonds. It is anticipated that the shares of Baltimore City and the counties and their municipalities will continue to be in excess of debt service of all county highway construction bonds. However, if necessary to meet debt service on county highway construction bonds, the respective 17 1/2% shares of Highway User Revenues distributable to Baltimore City and to the Counties and their municipalities 'may be increased to a maximum of 20% each.