B. Investments-Governmental Fund Types:

Investments are stated at fair value which is based on quoted market prices. The investments as of June 30, 2000, for the
governmental fond types of the Primary Government are categorized as follows (amounts expressed in thousands).

		Category
	1	2	3	Fair Value
U. S. Treasury and agency obligations...................................................	$1,475,807			$1,475,807
Bonds....................................................................................................	835			835
	$1,476,642			1,476,642
Items not subjected to classification:
Maryland Local Government Investment Pool....................................				112,491
				$1,589,133

The Maryland Local Government Investment Pool is operated in accordance with Rule 2 a-7 of the Investment Company Act
of 1940, as amended. As of June 30,2000, the net asset value, offering and redemption price per share was $1.00. The fair value of
the State of Maryland s investment in the pool is equal to the fair value of its shares in the pool.

Under Section 2-603 of the State's Finance and Procurement Article, the State lends U.S. Government securities to broker-
dealers and other entities (borrowers). The States custodial bank manages the securities lending program by contracting with a
lending agent who receives cash as collateral. The lending agent may use or invest the cash collateral in accordance with the
reinvestment guidelines approved by the State Treasurers Office. The cash collateral will be returned for the same securities in the
future. The collateral cannot be pledged or sold by the State unless the borrower defaults. Cash collateral is initially pledged at
greater than the market value of the securities lent and additional collateral has to be provided by the next business day if the
aggregate value of the collateral falls to less than 100 percent of the market value of the securities lent. Either the State or the
borrower may terminate the lending agreements on demand. Lending agreements are usually short in duration. Therefore, the
duration of lending agreements does not generally match the maturities of the investments made with cash collateral.

The bank is obligated to indemnify the State against liability for any suits, actions, or claims of any character arising from or
relating to the performance of the bank under the contract, except for liability caused by acts or omissions of the State.

The State did not experience any losses on their securities lending transactions for the year ended June 30,2000. Furthermore,
as of June 30,2000, the State had no credit risk exposure to borrowers because the fair value of the collateral for the securities loaned
exceeded the fair value of the related securities, as follows (amount expressed in thousands).

	Fair	Value
	Loaned	Collateral Percent
	Securities	Received Collateralized
Securities - US Treasury obligations ............................................................................................	$107,689	$110,200 102.3%

C. Investments-Enterprise:

Investments of the enterprise funds are stated at fair value which is based on quoted market prices. The investment policies for
all enterprise funds, with the exception of the Community Development Administration, are the same as those of the State
Treasurer. The Community Development Administration, an agency of the Department of Housing and Community Development,
is authorized to invest in obligations of the U.S. Treasury, U.S. Government agencies and corporations, political subdivisions of the
U.S., bankers acceptances, repurchase agreements, corporate debt securities and certificates of deposit with foreign or domestic
banks. The U.S. Treasury and agency obligations and collateral for the repurchase agreements are held by the enterprise fond s agent
in the enterprise fund's name.

The investments as of June 30,2000, for the enterprise funds of the primary government are as follows (amounts expressed in
thousands).

		Category
	1	2	3	Fair Value
U. S. Treasury and agency obligations...................................................	$1,094,075			$1,094,075
Repurchase agreements............................................... ..........................	329,530			329,530
Corporate equity securities ...................................................................	18,444			18,444
	$1,442,049			1,442,049
Items not subject to classification:
Annuities and guaranteed investment contract.....................................				23,611
Total...................................................................................................				$1,465,660

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