A summary of the effects of the fund structure differences and exceptions to the modified accrual basis of accounting,
as of June 30,1999, follows (amounts expressed in thousands).

Total Budgetary Fund				Financial	Statement	Funds
Equities
and Other						Trust	Component	Units
Accounts		Special	Debt	Capital		and	Higher	Proprietary
June 30, 1999	General	Revenue	Service	Projects	Enterprise	Agency	Education	Funds
Classification of budgetary
fund equities and other accounts
into GAAP fund structure:
General........................................ $ 1,514,461	$1,514,461
Special ........................................ 748,253	284,125	$150,566	$ 50,647	$ 13,263	$ 249,652
Current unrestricted.................. 271,568							$ 271,568
Current restricted ...................... (1,835)							(1,835)
Other accounts (a):
Non-budgeted.......................... 98,252	87,531	10,227		44	450
Transportation Authority ...... 3 19,473		245,337	74,136
Debt service
transportation bonds.......... 4,904			4,904
Capital projects ...................... 518,641				436,944	81,697
Enterprise .............................. 901,780	990				901,874			$ (1,084)
Expendable trust.................... 2,216,849						$ 2,216,849
Pension trust .......................... 30,760,854						30,760,854
Component units:
Higher education................ 3,147,848							3,147,848
Proprietary funds .............. 271,121								271,121
Budgetary fund equities and
other accounts classified into
GAAP fund structure: ................ $40,772,169	1,887,107	406,130	129,687	450,251	1,233,673	32,977,703	3,417,581	270,037
Accounting principle differences:
Assets recognized in the
GAAP financial statements
not recognized for budgetary
purposes:
Cash ........................................	12,277
Investments ............................	622
Taxes receivable.... ..................	78,045	(5,515)
Other accounts receivable......	19,712	1,000
Other assets ............................	59,838
Liabilities recognized in
GAAP financial statements
not recognized for budgetary
purposes:
Accounts payable and
accrued liabilities ..............	(75,284)	(10,868)
Accrued self-insurance costs	(4,352)
GAAP financial statement fund
equities, June 30, 1999 ..............	$1,977,965	$390,747	$129,687	$450,251	$1,233,673	$32,977,703	$3,417,581	$270,037

(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 fiduciary
funds and component units are maintained by the State Treasurer on a pooled basis. The State Treasurer's Office
invests short-term cash balances on a daily basis primarily in repurchase agreements, U.S. Government obligations
and money market mutual funds. 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.

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