E. Investments-Component Units:

Investment accounts established by higher education institutions relate principally to endowments and trust accounts required
by debt instruments. In general, endowment resources can be invested in debt and equity securities, and trust accounts can be
invested only in debt securities. These investments include U.S. Treasury and agency obligations, corporate debt and equity
securities, repurchase agreements, and mutual funds that invest in government securities.

The Maryland Stadium Authority's marketable securities are held by the Bond Trustee. Proceeds to purchase these marketable
securities were derived from various bond issues and any proceeds from the sale of these marketable securities are restricted to the
purpose of the original bond issue.

The investments of the Maryland Environment Service (Service) primarily relate to bond indentures. The Service or its trustee
banks are authorized to invest assets related to bond indentures in obligations of the United States of America, any federal agency,
high quality commercial paper or mutual funds that invest in U.S. Government securities. Additionally, the Service may otherwise
invest in securities allowed by the State.

Investments of the Maryland Stadium Authority, Maryland Environmental Service, Maryland Industrial Development
Financing Authority, Maryland Prepaid College Trust and the higher education institutions are stated at fair value which is based
on quoted market prices.

The investments as of June 30,2000, for the discretely presented component units are as follows (amounts expressed in thousands).

		Category
	1	2	3	Fair Value
U.S. Treasury and agency obligations ...................................................	$ 11,068	$11,144		$ 22,212
Bonds....................................................................................................		15		15
Corporate debt securities. .....................................................................	11,326	460		11,786
Corporate equity securities ...................................................................	169,659			169,659
Asset-backed securities.........................................................................	17,380	644		18,024
Other....................................................................................................	250			250
	$209,683	$12,263		221,946
Items not subject to classification:
Mutual funds ........................................................................................				49,284
Total......................................................................................................				$271,230

Derivatives are used to hedge against foreign currency risk, improve yield, adjust the duration of the fixed income portfolio, or
hedge against changes in interest rates. These securities are subject to changes in value due to changes in interest rates or currency
valuations. The asset-backed securities which are primarily secured by mortgages meet the definition of derivatives as defined by
GASB Technical Bulletin 96-1. These securities are subject to prepayment risk when interest rates are falling.

5. Taxes Receivable:

Taxes receivable, as of June 30,2000, consist of the following (amounts expressed in thousands).

			Funds
		Special	Debt	Trust and
	General	Revenue	Service	Agency
Income taxes .........................................................................................	$ 463,352			$193,189
Sales and use taxes ................................................................................	240,526
Transportation taxes, principally motor vehicle fuel and excise ............		$74,931
Unemployment compensation taxes .....................................................				95,068
Other taxes, principally alcohol 8c property..........................................	16,880		$ 7,181
Taxes receivable, net..............................................................................	$ 720,758	$74,931	$ 7,181	$288,257

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