Maryland Code, EDUCATION 18-1906.1
Terms Used In Maryland Code, EDUCATION 18-1906.1
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See
(b) The appropriation to be included in the budget bill under subsection (a) of this section shall equal the difference between the current prepaid contract obligations and the market value of Trust assets.
(c) For purposes of this section, the current prepaid contract obligations and the market value of Trust assets:
(1) Shall be determined as of June 30 of the calendar year that ended before the beginning of the fiscal year for which the appropriation is requested; and
(2) Shall be verified by the report of the independent outside auditor required under § 18-1916 of this subtitle.
(d) (1) The amount appropriated under this section shall be deposited into the Trust.
(2) All amounts paid into the Trust under this section shall constitute and be accounted for as advances to the Trust.
(3) Subject to the rights of the Trust’s contract holders, amounts appropriated under this section shall be repaid to the State without interest in equal amounts in each of the next 2 fiscal years succeeding the one for which the appropriation was made.
(4) If the appropriation in the State budget as enacted by the General Assembly is less than the amount specified under subsection (b) of this section, the Board may adjust the terms of subsequent or current prepaid contracts to ensure continued actuarial soundness of the Trust.