Huge Surge in Unclaimed Property Brightens Revenue for SD Legislators
South Dakota sees a record influx of unclaimed property, aiding budget amid cuts
South Dakota, Unclaimed Property, Gov. Kristi Noem, Budget, Legislators
Sioux Falls: So, South Dakota is having a bit of a financial boost thanks to unclaimed property. Governor Kristi Noem recently shared her budget plans, and guess what? Unclaimed property is the shining star in a sea of budget cuts.
This year, the state raked in a whopping $308 million from unclaimed property, nearly double what they got last year. It’s all about those forgotten assets—think abandoned bank accounts, uncashed checks, and even the odd gold bar.
State Treasurer Josh Haeder mentioned that banks and other holders try to track down the owners, but if they can’t find them after three years, the state gets to keep it. Most of this money goes straight into the state budget, while physical items are stored safely until they can be auctioned off.
Interestingly, rightful owners can still claim their stuff anytime, but many don’t bother. Last year, the state got $175 million but only paid out $38 million in claims. It’s a bit of a hassle to claim, and some folks just don’t think it’s worth their time.
So, why the sudden surge? Well, the pandemic played a role. Many people moved around, leaving behind assets. Plus, a big bank moved its charter to South Dakota, which helped boost those numbers even more.
Now, the total unclaimed property value that’s never been claimed is around $1.19 billion. That’s a lot of cash! Noem wants to set aside some of this money to ensure they can pay out claims when they come in.
Haeder is pushing for a trust fund to manage this unclaimed property revenue better. He believes it would provide a more stable income for the state. Some lawmakers are on board, while others think it’s unnecessary.
As for spending, Noem is looking at cuts in various departments due to declining sales tax revenue. But she’s also proposing some increases, like funding for education savings accounts. It’s a balancing act, for sure.
Lawmakers will start discussing these budget proposals soon, and it’ll be interesting to see how they navigate this unclaimed property windfall. It’s a unique situation, and everyone’s got their eyes on how it’ll play out.