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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 1993 and 1994 are shown as follows:
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Ratio of Net
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Ratio of
|
|
|
|
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Bonded Debt
|
Debt to
|
|
|
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Amount
|
to Assessed
|
Present
|
Bonded
|
|
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(expressed
|
Value (46.2% of
|
Market
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Debt Per
|
|
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in thousands)
|
Present Market)
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Value
|
Capita
|
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General obligation bonds:
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|
|
|
|
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1993
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$2,279,390
|
1.83%
|
.85
|
$464.42
|
|
1994
|
2,504,004
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1.93
|
.89
|
504.33
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Additionally, outstanding limited obligation bonds of the Department of Transportation and the Maryland
Transportation Authority amounted to $1,046,135,000 and $302,541,000, respectively, at June 30,1994. Debt service
on the Department of Transportation bonds is provided principally by excise taxes levied by statute. Debt service
on the Maryland Transportation Authority bonds is payable from revenues of the projects of the Authority. Self-
supporting revenue bonds outstanding at June 30,1994 amounted to $5,145,524 Long-term obligations for accrued
annual leave of $131,725,000 represent the value of accumulated earned but unused annual leave for general
government employees at June 30, 1994.
Limited obligation bonds issued by the Department of Transportation and self-supporting notes payable and
revenue bonds issued by enterprise agencies amounted to $543,745,000 and $33,039,000, respectively, during 1994.
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
1994 were within the limits established by the Committee. For the fiscal year 1994, new general obligation bond
authorizations amounted to $379,889,000.
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
|
|
July 10, 1991
|
$100,000,000
|
9.9
|
6.26%
|
61.8$
|
|
October 9, 1991
|
120,000,000
|
9.8
|
5.70
|
55.8
|
|
May 13, 1992
|
120,000,000
|
9.8
|
5.69
|
55.7
|
|
January 13, 1993
|
130,000,000
|
9.7
|
5.76
|
51.2
|
|
May 19, 1993
|
278,150,000
|
9.6
|
4.99
|
47.8
|
|
October 6, 1993
|
283,545,000
|
9.3
|
4.36
|
40.5
|
|
February 16, 1994
|
184,210,000
|
8.2
|
4.36
|
35.7
|
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May 18, 1994
|
120,000,000
|
9.7
|
5.24
|
51.0
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Maryland's general obligation bonds have been rated Aaa by Moody's Investors Service and AAA by Standard &
Poor's and Fitch Investors, Inc. 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, 1994, the State's cash resources for general governmental
funds were invested as follows: in repurchase agreements, 67.8%; in U.S. Treasury and agency obligations, 30.9%;
and in certificates of deposit and other, 1.3%. The average yield on maturing investments during the year was 3.5%,
as compared to 3.3% in the prior year, and the amount of interest received was $56,120,000, which was $20,962,000
more than the previous year. The State does not invest in speculative derivative securities.
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