John Schroder
State Treasurer John Schroder is facing a lawsuit from Governor Edwards after refusing to turn over an estimated 25-million dollars in unclaimed property money to help fund the governor’s proposed 32-billion dollar budget. Schroder says using unclaimed money in the budget is bad public policy.
“I’m careful about saying that someone is doing something illegal, but I don’t believe the law specifically says that I’m supposed to turn this money over to the state general fund,” said Schroder.
Edwards released a statement that the Unclaimed Property Fund hit a balance of more than $78-million, leaving a healthy balance of funds for Schroder to distribute funds. But Schroder says the department was short $20 million last fiscal year in paying 82,000 claims because of previous dips into unclaimed property money.
“This isn’t about me arbitrarily wanting to keep money. That made us look at the law. How can we change it because there is no mechanism for the treasury to go get money to pay claims if we don’t have it,” said Schroder.
Schroder recommends putting the $22-to-25 million a year into a savings account, investing it the same way the state invests its trust fund money, and then letting the state spend from the interest. Schroder says the calculations have been done.
“Would you believe that after 25 years we’d be kicking off $70+ million that the government could use in any fashion that they want,” said Schroder.
Edwards says that the law is clear, excess revenues in the Unclaimed Property Fund are to benefit the public and that the public does not profit by the Treasurer simply seeking to grow the size of his government bank account.
