States Taking Unclaimed Money Due to Budget Deficit
Should any unclaimed money go to releaving the state’s budget deficit? Most of the U.S. states are caught in a peculiar situation in which there is unmanageable budget deficit on one hand, and hoards of unclaimed cash on the other. This has set the brain-storming among the U.S. think tank. They advocate that these unclaimed funds can be effectively utilized to fill in the budgetary void.
In spite of the relentless efforts by the authorities, claimants are not coming forward in expected numbers to fetch unclaimed cash in their names; it is likely to remain dormant for long. It will make good economic sense to not let it idle till the claimants come forward.
As per the National Association of Unclaimed Property Administrators (NAUPA), state treasurers are presently safeguarding $32.877 billion of unclaimed cash and property. This huge cache remains unclaimed in spite of $1.754 billion that was distributed in 2006 alone. More than this amount has been distributed since then; however the incidents of unclaimed cash reporting are far from doused.
Rich Source for the Cash-Strapped States
As citizens are not coming out in sufficient numbers to claim the cash, this reserve is turning out to be a rich source of cash for the states that have budgetary deficit. Unclaimed property funds are a sure and safe source of the cash, which is readily available with the state treasurer.
States are taking steps to bridge the deficit, but these are not yielding the desired results. California Governor Arnold Schwarzenegger has shown interest in keeping this money in reserve to meet the state’s $19 billion budget deficit. Alabama’s democratic candidate for Treasurer, Jeremy Sherer has offered the solution to tap these funds till the economy of the state improves. Delaware State currently estimates that unclaimed funds will provide approximately $374 million in revenue for the fiscal 2010.
Cumulative effects of these state deficits is taking its toll on U.S. finances. Monthly budget deficit of the U.S. has reached an alarming $82.69 billion in April 2010. Earlier, National Conference of State Legislatures have expressed concern that the state budget deficits are expected to exceed $55.5 billion for the fiscal year beginning on July 1. Their estimate has already been surpassed and they are looking at unclaimed cash as a rich source to fill this deficit.
Legal Amends to Garner the Funds
Many states are looking forward to take legal course to bring unclaimed cash under their rights of utilization. One of the proposed steps is to reduce the dormancy period of unclaimed cash. This will create and an expiration date for the unclaimed cash and more such cash will be free to flow into by the state coffers for unbridled utilization. Some legislative changes are also in the offing to bring unclaimed cash under the state’s coffers.
Whatever the legal repercussions of these moves, the unclaimed cash is turning out to be a sitting duck for the state authorities to cover up for budget deficits.
Using rightfully earned, however, unclaimed cash, to pay off the deficit doesn’t seem like a fair thing to do! Many Americans have cash that is unclaimed and they’re not aware of it! Go to www.cashunclaimed.com today to find out if you are one of the many Americans who have unclaimed cash! Claim that money that ir rightfully yours today!
