|
8. General Obligation Bonds:
General obligation bonds are authorized and issued primarily to provide funds for state owned capital
improvements, including facilities for institutions of higher learning, and the construction of public schools in
political subdivisions. Bonds have also been issued for local government improvements, including grants and loans
for water quality improvement projects and correctional facilities, and to provide funds for repayable loans or
outright grants to private, not-for-profit cultural or educational institutions. Under constitutional requirements
and practice, the Maryland General Assembly, by a separate enabling act, authorizes a loan for a particular object
or purpose. Thereafter the Board of Public Works, a constitutional body composed of the Governor, the Comptroller
of the Treasury and the State Treasurer, by resolution authorizes the issuance of bonds in a specified amount
for part or all of the loan authorized by a particular enabling act.
General obligation bonds, which are paid from the General Obligation Debt Service Fund, are backed by the
full faith and credit of the State and, pursuant to the State Constitution, they must be fully paid within 15 years
from the date of issue. Property taxes, debt service fund loan repayments and general fund appropriations provide
the resources for repayment of general obligation bonds.
General obligation bonds outstanding and bonds authorized but unissued (amounts expressed in thousands)
as of June 30, 1985, were as follows:
|
|
Outstanding
|
|
Authorized But
Unissued
|
|
Purpose
|
Interest Rates
|
Amount
|
Amount
|
|
General construction ................................................
|
4.4% to 11.3%
|
$ 792,110
|
$326,454
|
|
Public school construction ...........................................
|
4.2 to 11.3
|
913,025
|
73,100
|
|
Water quality ......................................................
|
4.4 to 11.0
|
122,830
|
133,210
|
|
Sanitary facilities and sewage treatment ...............................
|
4.2 to 11.0
|
16,445
|
4,205
|
|
Hospitals and nursing homes .........................................
|
4.5 to 11.3
|
6,665
|
22,500
|
|
Community colleges and vocational schools .............................
|
4.4 to 11.0
|
38,835
|
9,900
|
|
Airport development ................................................
|
4.5 to 4.9
|
10,485
|
|
|
Housing loans ......................................................
|
4.4 to 11.3
|
73,515
|
11,603
|
|
Maryland Port Authority loans .......................................
|
4.5 to 6.2
|
3,960
|
|
|
Jails and correctional institutions .....................................
|
4.3 to 11.3
|
48,850
|
35,002
|
|
Private colleges ....................................................
|
4.5 to 11.3
|
14,855
|
12,262
|
|
Social, cultural and historical .........................................
|
4.4 to 11.3
|
58,127
|
34,812
|
|
Savings and loan association insurance loan ............................
|
|
|
100,000
|
|
Other .............................................................
|
4.2 to 11.3
|
131,593
|
68,295
|
|
|
|
$2,231,295
|
$831,343
|
As of June 30,1985, general obligation debt service requirements for principal and interest (amounts expressed
in thousands) in future years were as follows:
|
Years Ending
|
|
Years Ending
|
|
|
June 30,
|
Total
|
June 30,
|
Total
|
|
1986
|
$396,768
|
1994
|
$150,141
|
|
1987
|
380,992
|
1995
|
137,629
|
|
1988
|
366,288
|
1996
|
124,425
|
|
1989
|
346,110
|
1997
|
109,196
|
|
1990
|
329,028
|
1998
|
84,300
|
|
1991
|
289,384
|
1999
|
32,568
|
|
1992
|
220,227
|
2000
|
17,3a4
|
|
1993
|
172,745
|
|
|
41
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