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Treasurer explains debt‑service timing, meals-and-rooms omission and unclaimed‑property escheats at budget hearing
Summary
State Treasurer Monica Mazzappelli told the House Finance Division I how debt‑service timing and capital borrowing plans affect General Fund outlays, explained why the meals‑and‑rooms distribution was removed from the executive budget text though payments continue, and described unclaimed‑property escheats that provided roughly $19 million to the
State Treasurer Monica Mazzappelli updated House Finance Division I members on several budget items that shape the General Fund picture: debt‑service timing for planned capital borrowing, the accounting treatment of the meals‑and‑rooms distribution and the state’s unclaimed‑property (escheat) receipts.
Mazzappelli said the capital program and its timing — particularly a previously approved $40 million authorization tied to a correctional project — drives the year‑to‑year debt‑service profile. She emphasized that the Treasury issues bonds only when projects are ready to spend: “We will only bond when they’re spend the money, not before,” she said. The committee discussed the effect of the $40 million and asked for an amortization schedule to show how new borrowing would impact annual debt service; the treasurer agreed to produce that schedule.
On the meals‑and‑rooms distribution, Mazzappelli told the committee the item was removed from the budget appropriation in the last cycle’s Senate version, but actual distributions to municipalities continue to be made from the accounting system. She said FY25 activity recorded those distributions even though the appropriation line was not present in the published budget language.
Mazzappelli also discussed the unclaimed‑property program, which returns dormant accounts to owners or — after a statutory period — escheats the funds to the state. She said that in 2024 about $19 million was escheated to the General Fund and that the Treasure’s office expects similar amounts in coming years (she cited an estimate of roughly $22–26 million across FY25–FY27). The Treasurer noted the administrative expense line for abandoned‑property claims is budgeted conservatively because audit and recovery timing varies year to year.
Lawmakers requested detail and schedules: Representative Leishman asked for an amortization schedule for the $40 million and the treasurer agreed to provide a breakdown as the committee prepares further budget work. The committee also asked for historical unclaimed‑property receipts and escheat figures to understand the volatility and size of that revenue source.
Ending: The treasurer promised follow‑up documents — an amortization schedule for proposed borrowing and a fund‑by‑fund reconciliation of escheated property and dedicated distributions — and the committee signaled it would review those materials as part of upcoming budget deliberations.
