16. Deferred Compensation Plan (Plan):

The State offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
Sections 457, 403(b), and 401(k). The Plan, available to eligible State employees, permits participants to defer a
portion of their salary until future years. Participation in the Plan is optional. The deferred compensation is not
available to employees until termination, retirement, death or unforeseeable emergency. All assets of the Plan are
held in a trust, custodial account or annuity contract for the exclusive benefit of employees and beneficiaries.

Investments are managed by the Plan's third party administrator under one of several investment options, or
a combination thereof. The choice of the investment option(s) is made by the participants.

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 1999 were
approximately $49,647,000. Future lease commitments under these agreements as of June 30,1999, are as follows
(amo'unts expressed in thousands).

Years ending
June 30,	Amounts
2000............................................................................................	$ 38,872
2001 ............................................................................................	31,337
2002............................................................................................	25,767
2003...........................................................................................	21,153
2004............................................................................................	16,151
2005 and thereafter ..................................................................	65,547
	$198,827

As of June 30, 1999, the State had commitments of approximately $164,128,000 for the completion of projects
under construction.

As of June 30,1999, the Department of Transportation and Maryland Transportation Authority had commitments
of approximately $1,668,626,000 and $86,000,000 respectively, for construction of highway and mass transit facilities.

Approximately 30% 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 of Transportation.

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 are as follows (amounts expressed
in thousands).

Years ending	Non-cancelable Operating Leases
June 30,	Minimum Future Rentals
2000......................................	$ 64,598
2001......................................	58,479
2002......................................	39,867
2003......................................	17,768
2004......................................	12,933
2005 and thereafter ............	55,180
	$248,825

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 $99,655,000 for the year ended June 30, 1999, including contingent rentals of
approximately $24,462,000.

As of June 30, 1999, the Maryland State Lottery Agency had commitments of approximately $77,822,000 for
services to be rendered relating principally to the operation of the lottery game.

As of June 30, 1999, several enterprise fund loan programs within the Department of Business and Economic
Development had committed to lend a total of $30,709,000 in additional loans (Maryland Economic Development
Opportunity Program Fund $24,509,000; Maryland Industrial and Commercial Redevelopment Fund $4,200,000;
Maryland Industrial Loan Fund $2,000,000). Also, the Community Development Administration, an enterprise
fund loan program, has $91,750,000 of revenue bonds outstanding that are not included in the financial statements
of the Administration. The revenue bonds are secured solely by the individual multi-family project properties,
related revenues and applicable credit enhancements.

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