17. Commitments:

The State leases office space under various agreements that are accounted for as operating leases. Many of the
agreements contain rent escalation clauses and renewal options. Rent expenditures for fiscal year 1995 were
approximately $32,284,000. Future lease expense commitments under these agreements as of June 30,1995, follow
(amounts expressed in thousands).

Years ending
June 30	Amounts
1996................................................................................................	$28,444
1997................................................................................................	22,921
1998................................................................................................	15,568
1999................................................................................................	9,979
2000................................................................................................	6,699
2001 and thereafter.....................................................................	3,986
	$87,597

As of June 30, 1995, the State had general fund commitments of approximately $70,000,000 for the completion
of projects under construction.

As of June 30, 1995, the Department of Transportation and Maryland Transportation Authority had
commitments of approximately $685,831,000 and $156,000,000, respectively, for construction of highway and mass
transit facilities. Approximately 87% of future expenditures related to the Department of Transportation
commitments are expected to be reimbursed from proceeds of approved Federal grants when the actual costs are
incurred. The remaining portion will be funded by other financial resources of the Department.

The Department of Transportation, as lessor, leases space at various marine terminals, airport facilities and
office space pursuant to various operating leases. Minimum future rental revenues follow (amounts expressed in
thousands).

Years ending	Noncancellable Operating Leases
June 30	Minimum Future Rentals
1996....................................................	$40,939
1997....................................................	31,199
1998....................................................	23,220
1999....................................................	21,116
2000....................................................	20,639
2001 and thereafter.........................	132,420
	$269,533

Total minimum future rental revenues do not include contingent rentals that may be received under certain
concession leases on the basis of a percentage of the concessionaire's gross revenue in excess of stipulated
minimums. Rental revenue was approximately $81,228,000 for the year ended June 30, 1995, including contingent
rentals of approximately $19,452,000.

As of June 30, 1995, the Maryland State Lottery Agency had commitments of approximately $40,738,000 for
services to be rendered relating principally to the operation of the lottery game.

As of June 30, 1995, the Maryland Stadium Authority had commitments of approximately $91,349,000 for
property and construction.

As of June 30, 1995, the higher education fund, a component unit, had commitments of approximately
$93,966,000 for the completion of projects under construction.

18. Contingencies:

The State is party to legal proceedings, which normally occur in governmental operations. The legal
proceedings are not, in the opinion of the Attorney General, likely to have a material, adverse impact on the
financial position of the State as a whole.

As of June 30, 1995, mortgage loan insurance programs included in the enterprise funds were contingently
liable as insurer of mortgage loans payable, or portions of mortgage loans payable, in an aggregate amount of
approximately $806,641,000 (including $650,970,000 for the economic development loan programs). In addition,
there are commitments to insure mortgage loans which would represent additional contingent liabilities of
approximately $66,548,000.

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