At the latest legislative interim appropriations meeting, a new law came at the forefront.
That’s because the state saw a “windfall” of one-time funds from unclaimed property.
Unclaimed property is any abandoned or private assets from bank accounts, stocks, uncashed checks, among other things.
During legislative session, legislators expected about $176 million for one-time unclaimed property receipts. At the end of the fiscal year, they came in $47 million over that figure.
Bureau of Finance Management Commissioner Jim Terwilliger said the state’s 2025 Fiscal Year budget was largely aided by those receipts.
“You can see some of that unanticipated in the one-time was unclaimed property. It’s pretty normal after Legislative session you have very little unclaimed property that comes in the door," Terwilliger said. "And so, this was truly kind of an unanticipated windfall. Absent that $47 million, our surplus would only have been $15 or $16 million. And so, that was truly the biggest contributor to the $63 million, was this unanticipated windfall."
He referred to a $63 million budget surplus for Fiscal Year 2025 recently announced by Gov. Larry Rhoden. This year, all those one-time dollars are headed towards the state’s general funds.
In the future, however, that won’t be the case. That’s because of a new state law that’s reducing the amount of unclaimed property receipts allowed to head to the general fund. Starting in Fiscal Year 2026 with $61 million, the amount headed towards the general fund gradually reduces until it hits $25 million in 2035.
All cash over those amounts is placed in a trust fund.
Jim Terwilliger said as the state’s revenue sources continue to struggle, because of the new law, it’s something legislators need to watch as they look ahead.
“This will not happen because any types of windfalls to unclaimed property will be dedicated to the trust fund that was set up in Senate Bill 155," Terwilliger said. "And so, I think it’s important to think about that. And as we go forward, there’s some challenges in our ongoing revenue sources that, you know, we’re keeping a very close eye on."
The state’s largest revenue source, the sales and use tax, came in $3.7 million less than legislators expected.
