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PRESS RELEASEOffice of Missouri State
Treasurer |
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PRESS RELEASEOffice of Missouri State
Treasurer |
JEFFERSON CITY – The Missouri public schools will be $900,000 richer under a request made this week by Treasurer Sarah Steelman to transfer that amount from the state’s Abandoned Fund to the Public School Fund.
“The request for the transfer of this funds is in accordance with state statutes,” Steelman said. “It is good news for public schools and a great example of making the best possible use of funds to help our citizens.”
Each year, the Unclaimed Property Division of the State Treasurer’s Office receives between $50 million and $60 million in unclaimed property. This is property belonging to owners that cannot be located and that is turned over to the state after five years in the custody of the original holder or agency. Typically, these funds come from checks to individuals who cannot be located, government accounts or tax refunds, abandoned checking and savings accounts or trusts or stocks whose owner cannot be located.
The Unclaimed Property Division works aggressively to locate the rightful owners and return their property to them. This year, the Division will return about $20 million to citizens who own the property
Steelman said the state would never deny a verifiable claim to citizens for property that belongs to them. Yet excess funds in the Abandoned Fund are used in both General Revenue and transferred to the School Fund to help finance public education in Missouri.
“Citizens or heirs can reclaim their property 100 years after it is sent to the state. There is no time limit, and ownership of the property never transfers to the state,” Steelman said. “Yet, excess balances are transferred to General Revenue and the School Fund to make the best use of these funds.”
The total amount of unclaimed property held by the state is about $300 million. To help hold down taxes and make the best use of these funds, any amount not needed to pay claims is transferred to General Revenue and to schools.
To help smooth cash flow and fund balances, transfers are made quarterly to the state’s General Revenue Fund. Statutes provide for an amount equal to 5 percent of the amount transferred to General Revenue to be transferred to the School Fund to help finance public education.
Should a claim for the unclaimed property exceed the amount held to pay claims, the necessary funds would be transferred from General Revenue to be paid to the rightful owner.
The transfer of funds to General Revenue to help pay for overall state services dates to 1985. In 2002, lawmakers replaced a system in which escheats – property in probate cases whose owners could not be located after 21 years -- had been transferred to help finance schools.
“Lawmakers did not want to deprive schools of this funding, and now, should the owners be located, the claims will be paid,” Steelman said. “Meanwhile, this money will be put to use to pay for services through General Revenue and for educating young people through the School Fund.
Steelman’s office is currently involved in a three-week ad campaign in which list are published in local newspapers containing names of owners of unclaimed property received by the state over the last two years. All citizens are encourage to check online lists at www.showmemoney.com to see if the state is holding unclaimed property that can be returned to them.
“We want to get this property back to the citizens to whom it belongs,” Steelman said. “While we are working to do that, we will make use of the money in a responsible way that holds down tax costs and helps benefit all Missouri citizens.