.ARTHUR
ANDERSEN

Arthur Andersen LLP
November 7, 1997

120 East Baltimore Street
Baltimore MD 21202
4107275800

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

The Honorable Louis L. Goldstein,
Comptroller of the Treasury of Maryland:

We have audited the accompanying general purpose financial statements of the State of Maryland as of June
30, 1997, and for the year then ended, as listed in the table of contents. These general purpose financial statements
are the responsibility of the State of Maryland's management. Our responsibility is to express an opinion on these
general purpose financial statements based on our audit. We did not audit the financial statements of (1) Maryland
Transportation Authority; (2) Maryland Department of Environment; (3) State Use Industries; (4) State Retirement
and Pension System of Maryland; (5) Maryland Local Government Investment Pool; (6) Maryland Stadium
Authority; (7) Maryland Food Center Authority; and the (8) Maryland Environmental Service, which represent the
percentages of the total assets, operating revenues or deductions, and expenditures, expenses or deductions of the
fund types listed below.

	Percentage	of Total Operating Revenues or	Fund Type Expenditures, Expenses
Agency	Total Assets	Deductions	or Deductions
Special Revenue Fund	33.4%	7.5%	8.9%
— Maryland Transportation Authority
Debt Service Fund	52.2	0.6	6.9
— Maryland Transportation Authority
Enterprise Fund	10.1	3.6	4.1
— One Loan Program
— State Use Industries
Pension Trust Fund	99.8	99.6	99.3
— State Retirement and Pension System of Maryland
Agency Fund	20.7	N/A	N/A
— Maryland Local Government Investment Pool
Component Unit Proprietary Fund	95.0	99.8	96.8
— Maryland Stadium Authority
— Maryland Food Center Authority
— Maryland Environmental Service

Those financial statements were audited by other auditors whose reports thereon have been furnished to us,
and our opinion, insofar as it relates to the amounts included for the above mentioned agencies and component
units, is based solely on the reports of other auditors.

We conducted our audit in accordance with generally accepted auditing standards and the standards for
financial audits contained in Government Auditing Standards (1994 Revision), issued by the Comptroller General

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