Outlook

The current economic expansion, though slowing, is expected to continue throughout 1984 and 1985,
thus indicating favorable revenue prospects for the 1985 fiscal year. Although housing activity appears to be
slowing, rising employment and income within the State should ensure that general fund revenues will grow
at a rate similar to that experienced during the 1984 fiscal year.

General fund revenues will be augmented during fiscal year 1985 by the transfer of portions of the motor
fuels and corporation income taxes formerly allocated to the Transportation Trust Fund. It is expected that
these losses to the Transportation Trust Fund will be recouped through continued strength in motor vehicle
titling, motor fuels and corporation income tax receipts.

New bond authorizations to support the 1985 capital budget amounted to $209,800,000. For the fourth
consecutive year the new authorizations were within the limit recommended by the Capital Debt Affordability
Committee.

Based upon Maryland's tradition of strong fiscal management as demonstrated by its commitment to
the capital debt affordability program, requirements of the Certificate of Conformance program, and
independent audits along with the continuing positive revenue outlook for the State, I am confident that
Maryland will maintain its position of fiscal leadership in the years ahead.

I will be pleased to furnish additional information on the State's finances upon request.

Cordially yours,

Louis L. Goldstein
Comptroller of the Treasury
of Maryland

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