Changes in the self-insurance liabilities during fiscal year 1998 were as follows (amounts expressed in thousands).

	Beginning-of	Claims and		End-of
	Fiscal-Year	Changes in	Claim	Fiscal-Year
	Liability	Estimates	Payments	Liability
Property, Casualty and General Liability ................................................	$ 10,256	$ 4,047	$ 6,524	$ 7,779
Workers' Compensation..............................................................................	150,000	27,617	26,617	151,000
Employee Health Benefits..........................................................................	26,262	273,785	267,924	32,123
Total Self-Insurance Costs ........................................................................	$186,518	$305,449	$301,065	$190,902

12. Equity:

Fund Balances /Retained Earnings —

Fund balances and retained earnings are reserved as follows (amounts expressed in thousands).

					Fiduciary Fund	Component
		Governmental	Fund Types		Types	Units
		Special	Debt	Capital	Trust and	Higher	Proprietary
	General	Revenue	Service	Projects	Agency	Education	Fund Types
Loans and Notes Receivable....................................		$ 15,351	$23,185
Loans to Component Units......................................			6,372
State Reserve Fund..................................................	$ 740,976
Encumbrances ..........................................................	211,376	103,511		$317,477		$ 18,523
Agency Activities. .....................................................	223,041	28,128					$4,593
Shore Erosion Loan Program ..................................				13,264
Pension Benefits ......................................................					$30,050,470
Deferred Compensation Benefits ............................					1,337,476
Unemployment Compensation Benefits ................					879,373
Local Government Investment Pool........................					710,384
Higher Education Programs ....................................						98,904
Endowment Funds ..................................................						249,901
Debt and Plant Additions ........................................						135,845
Total reserved fund balance/retained earnings......	$1,175,393	$146,990	$29,557	$330,741	$32,977,703	$503,173	$4,593

Loans receivable maturing after June 30,1999, in the amount of $15,351,000 and $29,557,000 are not available
for current operations and, accordingly, have been reflected as reservations of the special revenue/and debt service
fund balance.

Portions of the general fund balance and the special revenue fund balance, in the amounts of $223,041,000 and
$28,128,000 respectively, as of June 30, 1999, representing special budgetary and non-budgeted agency resources,
were reserved for agency activities and programs.

A portion of the general fund balance, in the amount of $740,976,000 as of June 30,1999, has been reserved for
the State Reserve Fund. The State Reserve Fund is comprised of a Dedicated Purpose Account, an Economic
Development Opportunities Program Fund, a Catastrophic Event Fund and a Revenue Stabilization Account with
balances as of June 30,1999, of $90,710,000, $12,345,000, $3,001,000, and $634,920,000 respectively. The Dedicated
Purpose Account is designed to retain appropriations for major multi-year expenditures and to meet contingency
requirements. The Economic Development Opportunities Program Fund is to be used for extraordinary economic
development opportunities and only as a supplement to existing programs. The Catastrophic Event Fund is to be
used to respond without undue delay to a natural disaster or other catastrophic event that cannot be managed
without appropriations. The Revenue Stabilization Account is designed to retain State revenues for future needs
and reduce the need for future tax increases.

A portion of the general fund unreserved fund balance is designated for fiscal year 2000 appropriations in the
amount of $263,279,000. Furthermore, portions of the debt service unreserved fund balance are designated for payment
of the debt service on the general long-term debt, Transportation debt and the Maryland Transportation Authority
bond debt in the amounts of $21,090,000, $4,904,000, and $74,136,000 respectively.

Primary Government Contributed Capital —

The changes in contributed capital of the enterprise funds for the year ended June 30, 1999, are as follows
(amounts expressed in thousands).

	Economic	Development
	Insurance	Loan	State Use
	Programs	Programs	Industries	Total
Balance, July 1, 1998................................................. .............................................	$48,295	$610,200	$1,227	$659,722
Contributions..........................................................................................................		80,793	9	80,802
Depreciation on contributed assets ......................................................................			(254)	(254)
Balance, June 30, 1999 ..........................................................................................	$48,295	$690,993	$ 982	$740,270

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