Finders, keepers helps state

CARSON CITY -- State Treasurer Kate Marshall is hearing accolades these days for finding money that saved some state employees from layoffs.

If she and her staff had not found $60 million in additional unclaimed property and bond sale savings funds over the last three months, then Gov. Jim Gibbons would have had to cut state agency spending by another 3 percent.

Gibbons and key legislators announced April 9 that their $914 million budget-cutting plan took no additional money from state agencies. Agency budgets were cut 4.5 percent in January.

"Treasurer Marshall's hard work certainly played an important role in our ability to handle this round of spending reductions without any cuts to operating budgets," Gibbons said.

"We greatly appreciate the treasurer using her resources to assist us in solving our shortfall problem," added Assembly Speaker Barbara Buckley, D-Las Vegas.

Now when Marshall goes for coffee every morning, the woman who serves her asks if she could find her $1 million.

"We saved the state from layoffs," Marshall said. "People are very appreciative. When there are tough times, you step up to the plate."

Unclaimed property consists of old bank and credit card accounts, safety deposit boxes, uncashed payroll checks, stock certificates, dividend checks and other items of value.

The bond sale savings comes from favorable interest rates and refinancing loans to secure better rates on bond sales. The treasurer sells bonds to finance long-term state projects.

Most of the additional revenue, however, came from unclaimed property. By law, banks and retail companies must turn these assets over to the treasurer's office after a period of time, usually three to five years, if there has been no attempt to claim them.

Marshall directed her eight-member unclaimed property staff, most whom are auditors, to check with more companies for unclaimed property they might have and make sure it is turned over to the state.

She said staff members have been working 12-hour days in an effort to generate more funds to help the state out of its economic crisis.

"We have done more audits and made sure banks are cooperating with us and following the law," Marshall said.

The extra money was above projected revenue for the treasurer's office. By law, the first $7.6 million in unclaimed property goes to the Millennium Scholarship program.

The 48-year-old treasurer is quick to point out that her job isn't just trying to find money for state government. She has an equal responsibility to return unclaimed property to its rightful owners or their heirs.

Marshall recalls the woman who came into her office last month for the safety deposit box her husband had left at a bank before his death. He had died after a long illness and she somehow forgot about the safety deposit box, which eventually became unclaimed property held by the treasurer's office.

"She figured she would get about $500," Marshall said. "When we opened it, we found $155,000. She was overwhelmed."

Whenever she has a speaking engagement, Marshall asks for names of potential attendees. She checks her unclaimed property list to find if they are owed money.

Invariably she finds a couple of people who have money coming -- and hands them checks during her presentation.

Needless to say, her speeches go over well.

"Tell someone you have $500 for them and watch their reaction," she said.

Over the years, Marshall and her predecessors have given a total of $200 million in unclaimed property revenue to the state general fund.

By law, however, they must give that money to the owners or their heirs if they ever appear.

Too often people are not aware they have unclaimed assets. California's program was shut down for four months last year after a judge said it was not doing enough to find the rightful owners of unclaimed property.

Actress Angelina Jolie and baseball great Willie Mays were among the thousands of Californians who had not been given their assets.

Marshall said people can easily find if they have unclaimed property by visiting her Web site.

She also annually publishes in newspapers a list of people owned unclaimed property.

Marshall has returned $17 million to its rightful owners in the last year, compared with $4.7 million returned by former Treasurer Brian Krolicki during his last year in office.

Krolicki, now lieutenant governor, applauded Marshall for her success, but noted he was the one who brought unclaimed property division under the treasurer's jurisdiction in 2001. Previously it was handled by the Department of Business and Industry.

"It is cyclical," said Krolicki about the revenue. "It comes in when it comes in."

Marshall and her staff have found $76 million over the last year in unclaimed property.

Marshall has set a goal of returning a minimum of 40 percent of unclaimed property revenue to its owners.

She said she is confident she can find even more unclaimed property for the state general fund -- although not likely as much as over the last three months.

For now, she intends to increase the percentage going to its rightful owners.

"That is the 'funnest' part of my job. I get to give money away. I am trying to get money back to the people who own it, as well as doing what I can for the state."

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.