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![handle is hein.sag/sagmd0026 and id is 1 raw text is: Cite as: 88 Opinions of the Attorney General _ (2003)
[Opinion No. 03-001 (January 13, 2003)]
ENVIRONMENT - BUDGETARY ADMINISTRATION - FEDERAL
GRANTS - DISPOSITION OF INTEREST EARNED BY STATE
CONTRIBUTIONS TO SPECIAL REVOLVING LOAN FUND
January 14, 2003
The Honorable Nathaniel J. McFadden
Maryland Senate442
The Honorable Samuel I. Rosenberg
Maryland House of Delegates
You have requested our opinion on two questions concerning the disposition of
interest earned on State matching funds contributed to the Maryland Water Quality
Revolving Loan Fund and the Maryland Drinking Water Revolving Loan Fund. Both
questions concern interest income credited to those funds which was earned on State funds
that had been deposited in the revolving funds before the deadline for meeting a federal
match requirement. In particular, you ask:
(1) Can the interest income credited to the revolving funds be transferred to the
general fund?
(2) If that interest income cannot be transferred to the general fund, can it be used
to satisfy future matching funds requirements - i.e., can an equivalent amount be withheld
from future transfers that would otherwise be made from the general fund to the revolving
funds? If the State were to follow this course, are there potential adverse consequences to
the State, such as the loss of federal funding?
In our opinion, the answers to your questions are as follows:
(1) Interest income credited to the revolving funds may not be transferred to the
State's general fund.](ViewImageLocal?handle=hein.sag/sagmd0026&div=1&collection=&method=preview&ext=.png&size=3)