A report to the Maryland Congress on operating budget guidelines of the Maryland State Board for Higher Education is presented. Information is presented on the development of the guidelines since their inception in 1976 and on all changes made to the original guidelines. The guidelines used each year since 1976 are listed. In the development of the guidelines, and in the on-going revision process, it was considered that the guidelines were to produce a maintenance budget for an institution. Some portion of this maintenance budget would be met by general funds with the remainder met by special and federal funds. The guidelines were developed in the context of current state funding parameters. The guideline for instruction has three components: a fixed cost, a variable cost component for instruction, and a variable cost component for departmental research. The guideline for the administration program consists of a fixed cost component, a component related to enrollment, and a component related to the number of nonguideline programs. The number of nonguideline programs represents a measure of the complexity of the school. Guidelines for the library, student services, physical plant, and public safety guidelines are also outlined. (SW)