A significant portion of the investments maintained by the State Treasurer consist of repurchase agreements.
Collateral, which must be at least 102% of the face value of the repurchase agreement, must be delivered to the
State Treasurer's custodian for safekeeping. Investments maturing within 90 days of purchase are reported in the
financial statements as cash and short-term investments.

Investments are classified as to credit risk by the three categories described below:

Category 1 Insured or registered, or securities held by the State or its agent in the State's name.

Category 2 Uninsured and unregistered, with securities held by the counterparty's trust department or
agent in the State's name.

Category 3 Uninsured and unregistered, with securities held by the counterparty, or by its trust department
or agent but not in the State's name.

A. Govern/mental Fund Types, Expendable Trust and Agency Funds:

The bank deposits of the governmental fund types, expendable trust and agency funds as of June 30, 1990
were entirely insured or collateralized with securities held by the State or its agent in the State's name.

At June 30, 1990 cash in the amount of $4,407,000 was maintained with fiscal agents and represents funds
transmitted to bond paying agents for which coupons have not been presented. These funds were entirely insured
or collateralized with securities held by the State or its agent in the State's name.

Investments of the Deferred Compensation Plan are stated at market value. All other investments are stated
at cost, adjusted for amortization of premium and accretion of discounts. Repurchase agreements aggregating
$1,035,265,000 (market value of collateral of $1,046,739,000), U.S. Treasury and agency obligations aggregating
$35,341,000 (market value of $35,486,000) and certificates of deposit aggregating $5,205,000 at June 30,1990, are
reported as cash and short-term investments in governmental fund types. Also reported as cash and short-term
investments in the special revenue fund is $15,286,000 of unexpended bond proceeds invested in a tax-exempt
money market trust. The collateral for the repurchase agreements is held by the State's agent in the State's name.
The certificates of deposit are held by the State.

The investments at June 30,1990 for the governmental fund types, expendable trust and agency funds are as
follows (amounts expressed in thousands):

	Category	Carrying	Market
	1 2 3	Value	Value
U.S. Treasury and agency obligations .............	......... $778,332	$778,332	$852,267
Repurchase agreements ........................	......... 900	900	937
Other .......................................	......... 12,130	12,130	12,121
	$791,362	791,362	865,325
Deferred Compensation Plan ....................		374,104	374,104
Total ......................................		$1,165,466	$1,239,429

B. Enterprise and Pension Trust Funds:

The bank deposits of the enterprise and pension trust funds as of June 30, 1990 were entirely insured or
collateralized with securities held by the fund or its agent in the fund's name.

Investments of the enterprise funds are stated at cost, adjusted for amortization of premiums and accretion of
discounts. The investment policies for all enterprise funds, with the exception of the Community Development
Administration, are the same as those of the State Treasurer. The Community Development Administration, an
agency of the Department of Housing and Community Development, is authorized to invest in obligations of the
U.S. Treasury, U.S. Government agencies and corporations, political subdivisions of the U.S., bankers
acceptances, repurchase agreements, corporate debt securities and certificates of deposit with foreign or
domestic banks. Repurchase agreements aggregating $461,253,000 (market value of collateral of $462,565,000),
U.S. Treasury and agency obligations aggregating $1,632,000 (market value of $1,632,000) and certificates of
deposit aggregating $17,417,000 at June 30, 1990 are reported as cash and short-term investments in the
enterprise funds. The certificates of deposit, U.S. Treasury and agency obligations and collateral for the
repurchase agreements are held by the fund's agent in the fund's name.

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