Each year the Governor presents an annual budget for the following fiscal year to the General Assembly
in accordance with Constitutional requirements. The General Assembly is required to enact a balanced
budget. All State expenditures are made pursuant to the appropriations in the annual budget, as amended
from time to time by budget amendment. The various units of State government may, with the Governor's
approval, amend the appropriations for particular programs in their individual budgets funded from the gen-
eral fund, provided they do not exceed their total general fund appropriations as contained in the annual
budget. Additionally, appropriations for programs funded in whole or in part from the special or federal
funds may permit expenditures in excess of original special or federal fund appropriations to the extent that
revenues from the particular special or federal fund sources exceed original budget estimates and such addi-
tional expenditures are approved by the Governor or, in the case of the University of Maryland, the Board of
Public Works. Unexpended appropriations from the general fund may be carried over to succeeding years to
the extent encumbrances are approved by the Department of Budget and Fiscal Planning. Unexpended ap-
propriations from special and federal funds may be carried over to the extent of (a) available resources, and
(b) encumbrances are approved by the Department of Budget and Fiscal Planning.

4. Investments:

Investments (amounts expressed in thousands) as of June 30, 1980 consisted of:

			Funds
				Higher Education
		Debt	Other	and University	Fiduciary
	General	Service	Enterprise	Hospital	Fund Type
U. S. Treasury and Agency obligations ............		$179,593	$41,355	$11,032	$ 340,431
Certificates of deposit ...........................	....... $28,461			8
Commercial paper .............................				2,369	219,471
Corporate debt securities ........................				1,396	1,285,164
Corporate equity securities ......................				8,264	930,519
Annuity contracts ..............................			18,591		50,301
Other ........................................				939	100,838
Total ........................................	....... $28,461	$179,593	$59,946	$24,008	$2,926,724

Principally all assets of the higher education endowment and similar funds are pooled on a market
value basis. Each fund subscribes to or disposes of units on the basis of the per-unit market value at the be-
ginning of the calendar quarter within which the transaction takes place. At June 30, 1980, the fund con-
sisted of 165,010 units, each unit having a market value of $101.17.

The following tabulation summarizes changes in the relationship between cost and market of the pooled
net assets (amounts expressed in thousands) and the change in market value per unit for the year ended
June 30, 1980:

	Pooled	Net Assets	Excess of	Market
			Market	Value
	Market	Cost	over Cost	Per Unit
End of year ............................................	....... $16,694	$15,587	$1,107	$101.17
Beginning of year .......................................	....... 15,682	13,498	2,184	103.56
i Jnrealized net market depreciation for year .................			(1,077)
Realized net (losses) for year ..............................			657
Total change in excess of market over cost for year ...........			$ (420)	$ (2.39)

5. Taxes Receivable:

Taxes receivable (amounts expressed in thousands), as of June 30, 1980 consisted of the following:

		Funds
		Special	Debt
	General	Revenue	Service
Income taxes, current employee withholdings held by employers	...... $122,370
Retail sales and use taxes, current taxes held by collectors .........	...... 62,616
Transportation taxes, principally motor vehicle fuel ...............		$18,851
Other taxes ................................................	...... 3,214		$3,638
Total .......................................................	$188,200	$18,851	$3,638
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