Additionally, outstanding limited obligation bonds of the Department of Transportation amounted to
$469,290,000 at June 30, 1989. Debt service on these bonds is provided principally by excise taxes levied by
statute. Self-supporting revenue bonds outstanding at June 30, 1989 were $2,022,469,000. Long-term
obligations for accrued retirement costs of $367,628,000 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. Long-term obligations for accrued annual leave of $105,182,000
represent the value of accumulated earned but unused annual leave for general government employees at
June 30, 1989.

Limited obligation bonds issued by the Department of Transportation and self-supporting notes payable
and revenue bonds issued by enterprise agencies amounted to $107,285,000 and $308,690,000, respectively,
during 1989.

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 for 1989 were within the limits established by the Committee. For the fiscal year 1989, new
general obligation bond authorizations amounted to $294,997,000.

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
July 15, 1986	$164,645,000	9.9	6.68%	66.0*
July 9, 1987	144,860,000	9.8	6.44	63.1
January 7, 1988	80,000,000	9.9	6.78	67.2
May 17, 1988	80,000,000	9.9	6.49	64.3
October 25, 1988	80,000,000	9.9	6.66	66.0
March 1, 1989	80,000,000	9.9	6.71	66.5

Since June 30, 1983, general obligation bonds outstanding have declined by $404,530,000.

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 and U.S. Treasury and agency obligations with maturities ranging from one to 181 days and in
time deposits ranging from 180 to 365 days. As of June 30, 1989, the State's cash resources for general
governmental funds were invested as follows: in repurchase agreements, 77.1 percent; in U.S. Treasury and
agency obligations, 19.1 percent; and in certificates of deposit and other, 3.8 percent. The average yield on
maturing investments during the year was 9.1 percent, as compared to 7.0 percent in the prior year, and the
amount of interest received was $125,551,000, which was $35,515,000 more than the previous year.

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