the classification of the State's budgetary funds and the timing of recognition of certain revenues and expenditures.
A summary of the effects of the fund structure differences and exceptions to the modified accrual basis of
accounting, as of June 30, 1996, follows (amounts expressed in thousands).

	Total
	Budgetary
	Fund Equities				Financial	Statement	Funds
	and Other						Trust	Component	Units
	Accounts		Special	Debt	Capital		and	Higher	Proprietary
	June 30, 1996	General	Revenue	Service	Projects	Enterprise	Agency	Education	Funds
Classification of budgetary fund equities
and other accounts into GAAP fund
structure:
General........................................................	$ 594,542	$594,542
Special.........................................................	582,476	185,800	$223,465 '.	* 53,497	$ 17,424	$ 74,729			$ 27,561
Current unrestricted .................................	178,187							$ 178,187
Current restricted......................... .............	3,153							3,153
Other accounts (a):
Non-budgeted................ .........................	329,198	23,874	239,086	66,170	38	30
Debt service transportation bonds.....	32,860			32,860
Capital projects .....................................	201,693				107,539	94,154
Enterprise ...............................................	733,937					733,937
Expendable trust...................................	739,120						$ 739,120
Pension trust..........................................	. 20,790,270						20,790,270
Component units:
Higher education ...............................	2,444,364							2,444,364
Proprietary funds ..............................	29,565								29,565
Budgetary fund equities and other
accounts classified into GAAP fund
structure:. ...................................................	. $26,659,365	804,216	462,551	152,527	125,001	902,850	21,529,390	2,625,704	57,126
Accounting principle differences:
Assets recognized in the GAAP
financial statements not recognized
for budgetary purposes:
Cash........................................................		34,303
Other accounts receivable... ...............		18,866
Loans to other funds ...........................			1,000
Property, plant and equipment, net..									(74,010)
Investments in direct financing
leases................................... ...............									206,019
Liabilities recognized in GAAP
financial statements not recognized
for budgetary purposes:
Accounts payable and accrued
liabilities......... ....................................		(72,086)
Deferred revenue.......... ........................		(29,177)
Loans from other funds ......................			(25,000)
Accrued self-insurance costs .............		4,279
GAAP financial statement fund equities,
June 30, 1996 ............................................		$760,401	$438,551	$152,52	$125,001	$902,850	$21,529,390	$2,625,704	$ 189,135

(a) The State's accounting system is maintained by the Comptroller in compliance with State Law and in
accordance with the State's Budgetary Funds. In addition to the accounting system maintained by the Comptroller,
certain individual agencies, which are not subject to the State's budget, maintain accounting systems which are
required to be included to properly present the State's financial reporting in accordance with generally accepted
accounting principles.

4. Cash and Cash Equivalents and Investments:

Substantially all cash and cash equivalents of the governmental fund types and certain enterprise and fiduciary
funds are maintained by the State Treasurer on a pooled basis. The State Treasurer's Office invests short-term cash
balances on a daily basis. The investments consist of securities or repurchase agreements. Under the State Finance
and Procurement Article of the Annotated Code of Maryland, Title 6, Subtitle 2, the State Treasurer may only invest
in the following.

? Any obligation for which the United States Government has pledged its faith and credit for the payment of
principal and interest.

? Any obligation that a United States agency issues in accordance with an act of Congress.

? Repurchase agreements that any of the above obligations secure.

? Banker's acceptances.

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