C. Component Units:

Property, plant and equipment of the discretely presented Component Units, as of June 30, 1996, consists of
the following (amounts expressed in thousands).

	Higher Education Fund	Proprietary Funds
Land and improvements (proprietary funds include $1,526 of land held
for development)...............................................................................................	$ 188,586	$ 4,529
Structure and improvements...............................................................................	1,822,519	152,232
Equipment..............................................................................................................	526,464	11,054
Construction in progress .....................................................................................	262,817	1,922
	2,800,386	169,737
Less accumulated depreciation ..........................................................................	—	(34,455)
Total.................................................................................................................	$2,800,386	$135,282

9. Long-Term Obligations

A. General Long-Term Debt:

Changes in general long-term debt, for the year ended June 30, 1996, are as follows (amounts expressed in
thousands).

							Obligations
			Maryland	Accrued		Obligations	Under Capital
	General		Transportation	Self-	Accrued	Under	Leases with	Total
	Obligation	Transportation	Authority	Insurance	Annual	Capital	Component	Long-Term
	Bonds	Bonds	Bonds	Costs	Leave	Leases	Units	Obligations
Balance, July 1, 1995 .......................	.. $2,619,069	$1,061,710	$465,182	$108,371	$143,655	$102,373	$ 6,905	$4,507,265
Bond issuances.................................	.. 470,000							470,000
Bond accretion .................................			2,964					2,964
New obligations under capital
leases..............................................						18,442		18,442
Reduction in bond principal...........	.. (229,130)	(81,830)	(59,715)					(370,675)
Retirements of obligations under
capital leases.................................						(20,975)	(4,083)	(25,058)
Net increase in accrued self-
insurance costs.............. ...............				6,995				6,995
Net increase in accrued annual
leave ...............................................					3,039			3,039
Change in accounting......................							210,574	210,574
Balance, June 30, 1996. ...................	.. $2,859,939	$ 979,880	$408,431	$115,366	$146,694	$ 99,840	$213,396	$4,823,546

General Obligation Bonds —

General obligation bonds are authorized and issued primarily to provide funds for State owned capital
improvements, including facilities for institutions of higher education and the construction of public schools in
political subdivisions. Bonds have also been issued for local government improvements, including grants and loans
for water quality improvement projects and correctional facilities, and to provide funds for loans or outright grants
to private, not-for-profit cultural or educational institutions. Under constitutional requirements and practice, the
Maryland General Assembly, by a separate enabling act, authorizes loans for particular objects or purposes.
Thereafter, the Board of Public Works, a constitutional body comprised of the Governor, the Comptroller of the
Treasury and the State Treasurer, by resolution, authorizes the issuance of bonds in specified amounts for part or
all of the loans authorized by particular enabling acts.

General obligation bonds, which are paid from the general obligation debt service fund, are backed by the full
faith and credit of the State and, pursuant to the State Constitution, must be fully paid within 15 years from the
date of issue. Property taxes, debt service fund loan repayments and general fund appropriations provide the
resources for repayment of general obligation bonds. During fiscal year 1996, the State issued $470,000,000 of
general obligations with related issuance cost of $496,000.

Bonds issued after January 1, 1988, are subject to redemption provisions at the option of the State.
As of June 30, 1996, the State has $310,515,000 of defeased debt outstanding.

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