ABSTRACT
The creation of the Capital Debt Affordability Committee was an outgrowth of two events: the dramatic increase in outstanding debt during the mid-1970s and the release of the Department of Fiscal Services' two-year study on the state's debt picture, titled An Analysis and Evaluation of the State of Maryland's Long-Term Debt: 1958–1988. The state of Maryland has issued in recent years five types of tax-supported debt: general obligation debt; bonds and notes issued by the Department of Transportation and backed by the operating revenues and pledged taxes of the department; bond anticipation notes (BANs) issued in support of the savings and loan program; capital leases; and debt incurred by the Maryland Stadium Authority. The consolidated transportation bonds are issued for highway and other transportation projects. Debt service on county transportation bonds is secured by revenues distributed by law to the subdivisions from transportation trust fund sources.
