STATE OF MARYLAND

Combining Statement of Revenues, Expenses
and Changes in Retained Earnings

Enterprise Funds
for the year ended June 30,1999

(Expressed in Thousands)

	Economic
	Development		State
	Insurance	Loan	Lottery	State Use
	Programs	Programs	Agency	Industries	Total
Operating revenues:
Lottery ticket sales ................................................................................................			$1,080,029		$1,080,029
Charges for services and sales ..............................................................................	$ 7,690	$ 4,426		$35,750	47,866
Interest and other investment income ............................................................. .....	5,758	203,237			208,995
Other........................................................................................................................	19	1,962			1,981
Total operating revenues....................................................................................	13,467	209,625	1,080,029	35,750	1,338,871
Operating expenses:
Prizes and claims....................................................................................................			582,192		582,192
Commissions and bonuses......................................................................................			61,762		61,762
Cost of sales and services ......................................................................................				28,140	28,140
Operation and maintenance of facilities ..............................................................		9,871			9,871
General and administrative ..................................................................................	883	11,160	43,820	4,672	60,535
Interest....................................................................................................................		161,392			161,392
Depreciation and amortization. .............................................................................	14	1,070	609	946	2,639
Provision for insurance and loan losses ................................................................	, 13,185	14,293			27,478
Other........................................................................................................................		29,591			29,591
Total operating expenses....................................................................................	. 14,082	227,377	688,383	33,758	963,600
Operating income (loss)......................................................................................	(615)	(17,752)	391,646	1,992	375,271
Non-operating revenues (expenses):
Investment income..................................................................................................		2,171			2,171
Interest expense......................................................................................................			(65)		(65)
' Other........................................................................................................................		(1,236)		(2)	(1,238)
Income (loss) before transfers ............................................................................	(615)	(16,817)	391,581	1,990	376,139
Operating transfers in................................................................................................		44,281			44,281
Operating transfers out..............................................................................................	. (2,439)	(21,446)	(393,221)		(417,106)
Net income ..........................................................................................................	. (3,054)	6,018	(1,640)	1,990	3,314
Add: Depreciation of assets acquired from contributed capital ..............................				254	254
Increase (decrease) in retained earnings ..........................................................	. (3,054)	6,018	(1,640)	2,244	3,568
Retained earnings, July 1, 1998 ................................................................................	. 28,067	443,553	2,450	15,765	489,835
Retained earnings, June 30, 1999..............................................................................	. $25,013	$449,571	$ 810	$18,009	$ 493,403

83