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88 Maryland Attorney General Reports and Opinions 1 (2003)

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.