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Unreserved fund balances in the major operating funds were maintained at adequate levels. Although General Fund
revenues were greater than expenditures by $319,103,000, the General Fund unreserved fund balance for 1982 of
$91,267,000 was down $54,757,000 from last year. This compares with a decrease of $96,032,000 from the previous year.
The Special Revenue unreserved fund balance of $129,422,000 was down $25,121,000 from the preceding year because
federal revenues decreased while overall expenditures increased slightly. The Debt Service unreserved fund balance of
$402,282,000 increased $35,997,000 from the prior year. This increase, which is consistent with prior years, is occurring to
meet future debt service requirements.
Debt Administration
The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita are considered to be useful
indicators of the States debt position to state management, citizens and investors. These data for fiscal years 1981 and 1982
were as follows:
|
|
Amount
|
Ratio of Debt
|
|
|
|
|
(expressed
|
to Assessed
|
Ratio of Debt
|
Debt
|
|
|
in
|
Value (46.8% of
|
to Present
|
Per
|
|
|
thousands)
|
Present Market)
|
Market Value
|
Capita
|
|
General
|
|
|
|
|
|
obligation bonds:
|
|
|
|
|
|
1981
|
$2,204,055
|
4.72%
|
2.55%
|
$522.78
|
|
1982
|
$2,207,660
|
4.62%
|
2.16%
|
$517.87
|
Additionally, outstanding limited obligation bonds of the Department of Transportation amounted to $744,950,000 at
June 30, 1982. Debt service on these bonds are provided principally by excise taxes levied by statute. Self-supporting revenue
bonds outstanding at June 30, 1982 were $662,194,000. Other long-term obligations of $481,081,000 are pension liabilities
which represent the excess of retirement costs over retirement expenditures since 1978 and are being funded on a long-term
basis through annual contributions, principally from General Fund revenue.
In 1978, the Capital Debt Affordability Committee was created to study the State's debt structure and to recommend
maximum limitations on annual debt authorizations. Although the recommendations of the Committee are not binding on the
State s General Assembly, the amounts of annual general obligation bond authorizations have declined substantially since the
formation of the Committee. For the fiscal year 1982, new general obligation bond authorizations amounted to $184,998,000.
The following tabulation shows the general obligation bonds issued during the past three fiscal years and the first six
months of fiscal year 1983.
|
|
State of Maryland-
|
— General Obligation
|
Bonds
|
|
|
|
|
|
Effective
|
Interest Cost
|
|
|
|
Average
|
Interest
|
Per Borrowed
|
|
Date of Issue
|
Amount
|
Life in Years
|
Rate
|
Dollar
|
|
February 15, 1980
|
$117,310,000
|
9.7
|
6.19%
|
60.3c
|
|
July 1, 1980
|
121,970,000
|
10.1
|
6.10
|
61.4
|
|
March 1, 1981
|
149,095,000
|
6.9
|
8.19'
|
56.3
|
|
July 1, 1981
|
91,915,000
|
10.1
|
9.20
|
93.0
|
|
November 15/1981
|
96,265,000
|
10.2
|
11.30
|
115.6
|
|
July 1, 1982
|
140,495,000
|
10.4
|
11.10
|
115.6
|
|
December 1, 1982
|
126,735,000
|
10.3
|
8.37
|
86.0
|
Maryland's general obligation bonds have been rated Aaa by Moody's Investors Service and AAA by Standard and Poor's
for a number of years.
Cash Management
During the year, temporary surpluses of cash in general governmental funds were invested in repurchase agreements
ranging from one to 181 days to maturity and in time deposits ranging from 180 to 365 days to maturity. For the fiscal year
ended June 30, 1982 the States cash resources for general governmental funds were invested as follows: in repurchase
agreements, 47.9 percent; in United States Governmental Securities, 31.3 percent; in United States Government Agency
Securities, 17.3 percent; and in Certificates of Deposits, 3.5 percent. The average yield on maturing investments during the
year was 14.5 percent, and the amount of interest received was $124,999,000, which was $9,641,000 more than the previous
year.
Capital Projects Fund
Proceeds of general obligation bond issues are accounted for in the Capital Projects Fund until projects are completed.
Completed projects and uncompleted construction in progress at year end which are assets of the State are capitalized in the
General Fixed Assets Account Group, the appropriate Enterprise Fund for self-supporting projects or the Higher Education
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