C. Component Units:

The carrying value of cash and cash equivalents of the Component Units as of June 30,1996, was $128,892,000
most of which is pooled by the State. As of June 30, 1996, the carrying amount of the Component Units' bank
deposits was $5,799,000. The bank balance was $9,725,000, of which $9,400,000 was covered by depository
insurance or was collateralized by a pledge of United States Treasury obligations held by Federal Reserve banks
and $325,000 was uninsured and uncollateralized.

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, certificates of deposit, commercial paper, repurchase agreements, banker's acceptances and
money market funds.

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 originating bond issue.

The investments of the Maryland Environmental 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, and the higher education institutions are stated at cost, adjusted for
amortization of premiums and accretion of discounts.

The investments as of June 30, 1996, for the discretely presented Component Units are as follows (amounts
expressed in thousands).

		Category	Carrying	Market
	1	2 3	Value	Value
U.S. Treasury and agency obligations .......................................................................................	$110,955	$3,956	$114,911	$114,869
Corporate debt securities............................................................................................................	4,278	740	5,018	5,053
Corporate equity securities.........................................................................................................	41,469		41,469	83,355
Mortgage backed securities.........................................................................................................	1,144		1,144	1,173
Other................................................................................................................................................	5,035		5,035	5,010
	$162,881	4,696	167,577	209,460
Mutual funds..................................................................................................................................			10,617	10,617
Other................................................................................................................................................			5,110	5,110
Total.............................................................................................................................................			$183,304	$225,187

5. Taxes Receivable:

Taxes receivable, as of June 30, 1996, consists of the following (amounts expressed in thousands).

		Funds
		Special	Debt	Trust and
	General	Revenue	Service	Agency
Income taxes................................................................................................................................................	$257,645			$137,515
Sales and use taxes....................................................................................................................................	221,210
Transportation taxes, principally motor vehicle fuel and excise .......................................................		$69,211
Unemployment compensation taxes........................................................................................................				151,130
Other taxes, principally alcohol, tobacco and property...... .................................................................	10,860		$6,093
	489,715	69,211	6,093	288,645
Less allowance for doubtful accounts.....................................................................................................	648			57,493
Taxes receivable, net..................................................................................................................................	$489,067	$69,211	$6,093	$231,152

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