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Debt Administration
The ratios of net bonded debt to assessed property value, debt to present market value and bonded debt per
capita are considered to be useful indicators of the State's debt position to State management, citizens and
investors. Data for fiscal years 1990 and 1991 are shown as follows:
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|
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Ratio of Net
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Ratio of
|
|
|
|
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Bonded Debt
|
Debt to
|
|
|
|
Amount
|
to Assessed
|
Present
|
Bonded
|
|
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(expressed
|
Value (47.7% of
|
Market
|
Debt Per
|
|
|
in thousands)
|
Present Market)
|
Value
|
Capita
|
|
General obligation bonds:
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|
|
|
|
|
1990
|
$1,986,906
|
2.06%
|
1.02%
|
$418.91
|
|
1991
|
2,038,437
|
1.94
|
.93
|
426.36
|
Additionally, outstanding limited obligation bonds of the Department of Transportation amounted to
$1,003,380,000 at June 30, 1991. Debt service on these bonds is provided principally by excise taxes levied by
statute. Self-supporting revenue bonds outstanding at June 30, 1991 amounted to $2,867,164,000. Long-term
obligations for accrued retirement costs of $271,305,000 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 $126,837,000 represent the value of
accumulated earned but unused annual leave for general government employees at June 30,1991.
Limited obligation bonds issued by the Department of Transportation and self-supporting revenue bonds
issued by enterprise agencies amounted to $326,550,000 and $364,018,000, respectively, during 1991.
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 1991 were within the limits established by the Committee. For the fiscal year 1991, new general
obligation bond authorizations amounted to $329,200,000.
The following tabulation shows the general obligation bonds issued during the past three fiscal years:
State of Maryland—General Obligation Bonds
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|
|
|
Effective
|
Interest Cost
|
|
|
|
Average
|
Interest
|
Per Borrowed
|
|
Date of Issue
|
Amount
|
Life in Years
|
Rate
|
Dollar
|
|
October 25,1988
|
$80,000,000
|
9.9
|
6.66%
|
66.0C
|
|
March 1, 1989
|
80,000,000
|
9.9
|
6.71
|
66.5
|
|
July 18, 1989
|
80,000,000
|
9.9
|
6.45
|
63.7
|
|
March 1, 1990
|
130,000,000
|
9.9
|
6.57
|
64.8
|
|
May 4, 1990
|
24,227,000
|
6.7
|
6.35
|
42.3
|
|
July 17, 1990
|
95,000,000
|
9.9
|
6.65
|
65.7
|
|
October 16, 1990
|
95,000,000
|
9.9
|
6.88
|
68.1
|
|
March 26, 1991
|
95,000,000
|
9.8
|
6.20
|
61.0
|
|
May 31, 1991
|
11,787,000
|
6.7
|
5.85
|
39.0
|
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. Subsequent to June 30th, the State has had two additional bond sales and has
continued to maintain its triple A ratings.
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