[See image for photograph]

I am pleased to present our sixteenth Condensed Annual Report
of the financial affairs of Maryland, covering the Fiscal Year ended
June 30, 1976.

The format and information included in this document have been
substantially changed to conform with the financial data provided in Mary-
land's Official Bond Offering Statements. In the past, information on Maryland's
financial affairs has been presented on a cash basis. In this document,
expenditure information is presented on a modified accrual basis, in which
expenditures are generally recorded when obligated rather than when
actually paid. Revenues are presented on a cash basis, except for Federal
revenues, which are recorded when earned. Additionally, certain taxes per-
taining to one fiscal year but collected in the subsequent fiscal year are
recorded as revenues in the fiscal year to which they pertain.

This report is intended to supplement the much more detailed official
Annual Report, which is being published for release in the near future.
In addition to presenting summary statements of Maryland's General Fund
financial position for the 1976 and prior fiscal year, this document presents a
five-year history of financial operations for comparative purposes.

This report is based upon the State's net budgetary and loan fund
operations. The statements presented herein exclude from total State Treasury
receipts and disbursements the investment transactions, advances and
non-budgeted and proprietary operations. Additionally, in the combined
summary of revenues and expenditures, interfund transfers have been
eliminated, leaving receipts of $3,531,548,000 and expenditures of
$3,504,293,000 to reflect the net governmental operations of the State during
Fiscal Year 1976.

I trust this new report will be interesting and informative to both the
technical and lay reader, and I will be happy to furnish additional information
on the State's finances upon request.

Cordially yours,

Louis L Goldstein
Comptroller of the Treasury
of Maryland