The special revenue unreserved fund balance of $9,173,000 decreased $35,190,000 from the preceding year.
This decline was primarily the result of a planned reduction of the fund balance for projects funded from prior
years' revenues. The debt service unreserved fund balance of $102,932,000 declined $1,534,000 from the prior
year. This decline was the result of a planned reduction in the budgetary fund balance.

Capital Projects Fund

Proceeds of general obligation bond issues are accounted for in the capital projects fund. Completed projects
and uncompleted construction in progress at year end which are assets of the State are capitalized in the general
fixed assets account group, the appropriate enterprise fund for self-supporting projects or the higher education
fund. During fiscal year 1992, State projects costing $449,760,000 were completed. State grants for capital
projects of local governments and other public organizations amounted to $156,667,000 in the fiscal year, a
decrease of $43,568,000 over 1991.

Authorized but unissued general obligation bonds at June 30,1992 totaled $1,031,752,000.

General Fixed Assets

The general fixed assets of the State are those used in the performance of general governmental functions and
exclude the fixed assets of the proprietary fund type, and the higher education fund. As of June 30, 1992, the
general fixed assets of the State amounted to $5,230,191,000. This amount represents the actual or estimated cost
of the assets. Depreciation of general fixed assets is not recognized in the State's accounting system.
Infrastructure assets, consisting principally of highways, roads and bridges are not recorded in the general fixed
assets.

Enterprise, Fiduciary, and Higher Education Funds

All enterprise funds, with the exception of the State Lottery Agency and the Maryland Deposit Insurance
Fund Corporation, reported retained earnings for the year ended June 30, 1992. The Economic Development
Loan Programs, State Lottery Agency, and State Use Industries reported declines in retained earnings during
the year. Overall retained earnings for enterprise funds increased during 1992 by $58,943,000, compared to an
increase of $101,872,000 in 1991.

Fiduciary fund types include the expendable trust fund, pension trust funds and agency funds. Agency funds
are custodial in nature and do not report fund balances. All other fiduciary fund types reported fund balances of
$13,019,387,000 at June 30,1992, compared to $11,709,771,000 at June 30,1991.

The Maryland State Retirement and Pension Systems (System) was established to provide pension benefits
for State employees, the employees of the University of Maryland Medical System (a private, nonprofit, nonstock
corporation) and employees of 103 participating municipal corporations within the State. The annual actuarial
valuation continues to reflect a positive trend in the government's and employees' funding of the System.

The total fund balance for the higher education fund was $2,169,102,000 at June 30, 1992, compared to
$1,953,209,000 at June 30,1991.

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