Controller Sitting on a Pile of Money

The state controller’s office is holding $2.6 billion in unclaimed property and money from insurance and title companies, banks and other financial institutions.

So how is it that such a pile of money sits unclaimed, especially among the dozens of government agencies around the state that are owed? Those are the same agencies that pride themselves on sound fiscal management, at least around election time.

Los Angeles County could pick up $50,000 from assets on file with Controller Kathleen Connell’s office. San Diego County has about three dozen claims totaling just over $12,000. Sacramento County, where the money is housed, could get $3,200 in 22 claims.

In Orange County, about $30,000 is waiting to be claimed by 11 cities and the county. The Orange Police Department recently claimed its $230 from Great Western Bank.

“Well, that’s a pleasant surprise,” said Laguna Niguel City Manager Tim Casey when told his city has $5,579 waiting for pickup from Chevron USA.

Elsewhere in Orange County, the claims range from $2.26--owed to the city of Stanton from a Bank of America court settlement--to $5,516.75 owed the city of Fullerton from MCI Communications.

Overall, the controller’s unclaimed property fund includes a hodgepodge of assets: cashiers checks, utility deposits, savings and checking account balances, safety deposit keepsakes such as jewelry and rare coins, stocks, dividends and escrow proceeds. Personal property from safe deposit boxes is sold at auction every summer.

The unclaimed property was, at one time, held in accounts by a bank or other financial institution. After three years of inactivity, the money reverts to the state if the bank hasn’t found the owner.

The oldest name in the database dates to 1974. An online version of the database has dramatically boosted recovery efforts. Combined payouts rose from $85 million in fiscal 1996 to $150 million in fiscal 1999.

Still, finding rightful owners remains a challenge. Last month, Connell got $1 million from the state budget to help trace owners through tax filings.

Finding whether a windfall awaits takes Internet access, the proper software and a few mouse clicks. The address is https://www.sco.ca.gov.

Those without Internet access or the software can call the unclaimed property division of the controller’s office at (800) 992-4647 weekdays between 8 a.m. and 5 p.m.

Refunds take about 90 days and include 5% interest for each year the state has held the money.