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Management of financial resources is exercised through the legally mandated budgetary system of the
State. As planned, the budgetary system produced a positive general fund balance at June 30, 1983. For
further information on these differences, see footnote 3 to the financial statements.
The special revenue unreserved fund balance of $117,912,000 declined $11,510,000 from the
preceding year because the excess of expenditures over revenues was slightly higher than the net other
sources of financial resources. The debt service unreserved fund balances of $474,479,000 increased
$72,197,000 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 value and the amounts of bonded debt per capita are
considered to be useful indicators of the State's debt position to State management, citizens and investors.
These data for fiscal years 1982 and 1983 were as follows:
|
|
|
Ratio of Net
|
|
|
|
|
Amount
|
Bonded Debt
|
|
|
|
|
(expressed
|
to Assessed
|
Ratio of Debt
|
Bonded
|
|
|
in
|
Value (45.6% of
|
to Present
|
Debt Per
|
|
|
thousands)
|
Present Market)
|
Market Value
|
Capita
|
|
General
|
|
|
|
|
|
obligation
|
|
|
|
|
|
bonds:
|
|
|
|
|
|
1982
|
$2,207,660
|
4.62%
|
2.16%
|
$517.62
|
|
1983
|
$2,409,890
|
4.61%
|
2.11%
|
$557.97
|
Additionally, outstanding limited obligation bonds of the Department of Transportation amounted in
$757,200,000 at June 30, 1983. Debt service on these bonds are provided principally by excise taxes levied
by statute. Self-supporting revenue bonds outstanding at June 30, 1983 were $828,539,000. Other long-
term obligations of $567,168,000 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 States 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 for 1983 were within the limits established by the Committee. For the fiscal year 1983, new
general obligation bond authorizations amounted to $190,249,500.
The following tabulation shows the general obligation bonds issued during the past three fiscal years.
State of Maryland—General Obligation Bonds
|
|
|
|
Effective
|
Interest Cost
|
|
|
|
Average
|
Interest
|
Per Borrowed
|
|
Date of Issue
|
Amount
|
Life in Years
|
Rate
|
Dollar
|
|
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
|
|
June 30, 1983
|
125,000,000
|
10.1
|
8.31
|
83.9
|
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.
Additionally, limited obligation bonds issued by the Department of Transportation and self supporting
revenue bonds issued by enterprise agencies amounted to $74,875,000 and $178,862,000, respectively
during 1983.
14
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