Bonds
Outstanding

6/30/74

%

Bonds
Issued
During Year

%

Bonds
Redeemed
During Year

%

Interest
Paid
During Year

%

Bonds
Outstanding
6/30/75

%

Bonds Authorized
But Unissued

6/30/75*

%

GENERAL OBLIGATION BONDS:

General Construction Bonds. ..........

$ 269,503,504.57

24

$ 62,820,000.00

18

S 21,213,372.83

29

S 11,301,446.11

23

1 311,110,131.74

22

$ 470,765,731.83

32

Local Purpose and Other Bonds. .......

299,324,000.00

27

45,986,000.00

13

20,062,000.00

28

13,047,572.43

27

325,227,000.00

23

376,731,097.58

25

General Public School Construction

Bonds.............................

440,651,000.00

39

211,830,000.00

61)

23,821,000.00

33

18,936,784.53

40

628,660,000.00

45

585,105,000.00

40

State Agency and Political Subdivision

Bonds.............................

111,512,495.43

10

33,000,000.00

8

7,355,627.17

10

4,883,786.64

10

137,156,868.26

10

45,250,000.00

3

TOTAL GENERAL OBLIGATION

BONDS.............................

$1,120,991,000.00

100

1353,615,000.00

100

t 72,452,000.00

100

t 48,149,589.71

100

$1,402,154,000.00

100

$1,477,851,829.41

100

DEPARTMENT OF TRANSPORTATION

OF MARYLAND:

Consolidated Transportation Bonds. ....

$ 50,000,000.00

14

$ 45,000,000.00

51

$ 4,045,650.00

24

$ 95,000,000.00

22

658,915,000.00**

(Specific Tax Revenue Bonds)

State Highway Construction Bonds. . . . .

182,600,000.00

49

$ 22,500,000.00

84

4,700,075.00

29

160,100,000.00

37

***

County Highway Construction Bonds. . .

138,146,000.00

37

44,150,000.00

49

4,361,000.00

16

7,812,164.00

47

177,935,000.00

41

****

TOTAL LIMITED OBLIGATION

BONDS.............................

1370,746,000.00

100

1 69,150,000.00

100

$ 26,861,000.00

100

$ 16,657,889.00

100

1433,035,000.00

100

1658,915,000.00

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 6-30-75 $78,939,135.08 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 re-
demption of principal and interest on Bonds issued under the pro-
gram Open Space.
General Obligation Bonds are further categorized and secured
by revenues as follows:
A. General Construction Bonds and Local Purpose Bonds
representing 45% 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 45% 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 Con-
struction 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, 1974, and 1975 is provided through General Fund Appro-
priations 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
interest, the difference must be included by the State in the Real
and Personal Property Tax Levy.
C. State Agency and Political Subdivision Bonds, represent-
ing 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 Corpora-
tion 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 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
operations, in the proceeding 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., % 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 Baltimore
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 con-
tinue to be in excess of debt service on all county highway con-
struction 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.