The South Dakota legislature’s fiscal year 2014 revenue estimate projected unclaimed property receipts at $24 million.
Last week SD State Treasurer Sattgast announced the state received $125 million in FY14 unclaimed property and the Division of Unclaimed Property confirmed the net swept to the general fund after disbursements for FY14 is expected to be approximately $120 million.
That’s about $96 million more than the legislature’s revenue estimates.
The Unclaimed Property Division also estimates $30 million of this growth represents new ongoing receipts unrelated to the spike caused by the shortened dormancy period for unclaimed property.
It is likely this one-time $96 million and the on-going $30 million increase will raise some questions for the upcoming governor’s budget proposal and 2014 legislative session …
- Should some dollars be reserved against future claimants? If so, how much?
- Should some dollars be acknowledged as increased revenue in the 2014 revenue estimate?
- How should excess revenue funds be appropriated?
- How will the expected on-going $30 million increase be acknowledged in the 2015 budget?
To background the public on this issue, SD Budget & Policy Project has compiled a Policy Brief explaining how unclaimed property receipts are handled in South Dakota, providing 14 year trend data, breaking down the causes of the $125 million spike and describing the impact of the continuing appropriation of future unclaimed property receipts legislated in 2013 when Senate Bill 235 was rapidly introduced and passed in the last week of the 2013 session.