A summary of the effects of the fund structure differences and exceptions to the modified accrual basis of
accounting, as of June 30, 1997, follows (amounts expressed in thousands).

	Total
	Budgetary
	Fund Equities				Financial	Statement	Funds
	and Other						Trust	Component	Units
	Accounts		Special	Debt	Capital		and	Higher	Proprietary
	June 30, 1997	General	Revenue	Service	Projects	Enterprise	Agency	Education	Funds
Classification of budgetary fund
equities and other accounts into
GAAP fund structure:
General.....................................................	$ 837,778	$ 837,778
Special......................................................	637,944	181,411	$195,759	$ 46,817	$ 16,679	$ 172,029			$ 25,249
Current unrestricted. .............................	186,006							$ 186,006
Current restricted.................. .................	3,534							3,534
Other accounts (a):
Non-budgeted......................................	86,215	77,301	8,769		41	136			(32)
Transportation Authority ..................	281,975		213,410	68,565
Debt service transportation bonds	12,818			12,818
Capital projects ..................................	212,305				112,389	99,916
Enterprise ............................................	764,604	990				763,614
Expendable trust. ...............................	800,507						$ 800,507
Pension trust.. .....................................	24,588,298						24,588,298
Component units:
Higher education...... ........... ...........	2,687,858							2,687,858
Proprietary funds ...........................	187,345								187,345
Budgetary fund equities and other
accounts classified into GAAP fund
structure:..................................................	$31,287,187	1,097,480	417,938	128,200	129,109	1,035,695	25,388,805	2,877,398	212,562
Accounting principle differences:
Assets recognized in the GAAP
financial statements not recognized
for budgetary purposes:
Cash......................................................		20,431
Investments. ........................................		8,794
Other accounts receivable...... ..........		34,668	(2,180;	)
Loans and notes receivable..... .........			12,500
Liabilities recognized in GAAP
financial statements not recognized
for budgetary purposes:
Accounts payable and accrued
liabilities...... .....................................		(134,514'	) (8,091;	)
Deferred revenue................................		32,204
GAAP financial statement fund equities,
June 30, 1997 ..........................................		$1,059,063	$420,167	$128,200	$129,109	$1,035,695	$25,388,805	$2,877,398	$212,562

(a) The State's accounting system is maintained by the Comptroller in compliance with State Law and in
accordance with the State's Budgetary Funds. In addition to the accounting system maintained by the Comptroller,
certain individual agencies, which are not subject to the State's budget, maintain accounting systems which are
required to be included to properly present the State's financial reporting in accordance with generally accepted
accounting principles.

4. Cash and Cash Equivalents and Investments:

Substantially all cash and cash equivalents of the governmental fund types and certain enterprise and fiduciary
funds are maintained by the State Treasurer on a pooled basis. The State Treasurer's Office invests short-term cash
balances on a daily basis. The investments consist of securities or repurchase agreements. Under the State Finance
and Procurement Article of the Annotated Code of Maryland, Title 6, Subtitle 2, the State Treasurer may only invest
in the following.

? Any obligation for which the United States Government has pledged its faith and credit for the payment of
principal and interest.

? Any obligation that a United States agency issues in accordance with an act of Congress.

? Repurchase agreements that any of the above obligations secure.

? Banker's acceptances.

? Mutual funds.

? Commercial Paper.

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