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).

	Non-cancelable Operating Leases
Years ending June 30,	Minimum Future Rentals
2001 ......................................................................	$ 71,421
2002......................................................................	47,234
2003 ......................................................................	17,732
2004......................................................................	12,385
2005......................................................................	11,953
2006 and thereafter ..............................................	71,159
	$231,884

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 concessionaires gross revenue in excess of stipulated minimums. Rental revenue was approximately
$118,781,000 for the year ended June 30,2000, including contingent rentals of approximately $24,726,000.

As of June 30,2000, the Maryland State Lottery Agency had commitments of approximately $55,868,000 for services to be
rendered relating principally to the operation of the lottery game.

As of June 30,2000, several enterprise fund loan programs within the Department of Business and Economic Development had
committed to lend a total of $36,336,000 in additional loans (Maryland Economic Development Opportunity Program Fund
$31,726,000; Maryland Industrial and Commercial Redevelopment Fund $4,610,000). Also, the Community Development
Administration, an enterprise fund loan program, has $104,619,000 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.

Certain State higher education institutions of the higher education fund, a component unit, lease facilities and equipment under
agreements that are accounted for as operating leases. Many of the lease agreements provide for optional extensions and periodic
increases in lease payments. Lease expenditures for fiscal year 2000 were approximately $5,838,000. Future lease commitments
under agreements as of June 30,2000, are as follows (amount expressed in thousands).

Years ending June 30,	Amounts
2001......................................................................	$ 4,258
2002 ......................................................................	3,696
2003......................................................................	2,628
2004......................................................................	2,253
2005 ......................................................................	1,790
2006 and thereafter ...............................................	1,934
	$16,559

As of June 30,2000, the higher education fund had commitments of approximately $307,675,000 for the completion of projects
under construction.

18. Contingencies:

The State is party to legal proceedings which normally occur in governmental operations. The legal proceedings are not, in the
opinion of the Attorney General, likely to have a material, adverse impact on the financial position of the State as a whole.

As of June 30,2000, mortgage loan insurance programs included in the enterprise funds and component unit proprietary funds
were contingently liable as insurer of mortgage loans payable or portions of mortgage loans payable, in an aggregate amount of
approximately $662,560,000 (including $572,727,000 for the economic development loan programs). In addition, there are
commitments to insure mortgage loans which would represent additional contingent liabilities of approximately $9,120,000.

The State receives significant financial assistance from the U.S. Government. Entitlement to the resources is generally
conditioned upon compliance with terms and conditions of the grant agreements and applicable federal regulations, including the
expenditure of the resources for eligible purposes. Substantially all grants are subject to financial and compliance audits by the
grantors. Any disallowances as a result of these audits become a liability of the fund which received the grant. As of June 30,2000,
the State estimates that no material liabilities will result from such audits.

On February 13, 2000, a Mass Transit Administration (MTA) light rail train crashed into the BWI International Terminal.
There were a total of 25 injured parties. Many of the claims have already been settled by the Transit Insurance Group. There are still
a number of claims that remain unresolved. It is premature to make an exact determination as to the number of claims or to estimate
with any reasonable certainty the value of such claims that may ultimately result in litigation.

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