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State Treasurer: Due to budget sweeps, unclaimed property program unable to pay all claims

1 month 16 hours 29 seconds ago Wednesday, September 23 2020 Sep 23, 2020 September 23, 2020 9:13 AM September 23, 2020 in News
Source: WBRZ
State Treasurer John M. Schroder

BATON ROUGE - State Treasurer John M. Schroder announced Wednesday that the Unclaimed Property Program is once again temporarily short of the money needed to pay claims because of state budget sweeps.

A similar shortfall arose in September 2018.

The program had a balance of $623,715.10 on Sept. 22, leaving it short of the money needed to pay all pending claims, Schroder explained in a press release.

Since 1973, more than $600 million in Unclaimed Property has been used to balance the state budget, leading to shortfalls in the ability to pay claims.

Individuals and businesses may need to wait several weeks to claim their Unclaimed Property. Businesses traditionally remit lost money to the state in late October, which will generate enough funding to resume paying claims.

Treasurer Schroder issued a statement that said, in part, "Unclaimed Property isn't the state's money. It belongs to the people and businesses of Louisiana. We shouldn't have to delay returning people's money to them."

Schroder's press release concluded by saying, "Constitutional Amendment No. 7 will create the Unclaimed Property Permanent Trust Fund to protect Unclaimed Property beginning July 1, 2021. Through the fund's investment earnings, it also will create a state revenue source that doesn't raise taxes or spend people's Unclaimed Property."

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