Louisiana State Treasurer John Schroder says he won't let Louisiana spend $25 million from the state's unclaimed property account for general operating expenses this year. He says that financing mechanism is illegal.
The decision would threaten to create a hole in Louisiana's 30 billion dollar operating budget just one month after lawmakers in Baton Rouge put the finishing touches on it. Louisiana collects unclaimed dollars from old savings accounts, stocks and utility deposits on behalf of residents owed the cash. The treasurer's office continues to try an locate people and return money owed to them. Governors and lawmakers have spent money from the unclaimed property escrow in the budget for decades.
Schroder says he and his office's lawyers don't believe Louisiana law permits the transfers. Democratic Gov. John Bel Edwards disagrees and says it's that money helps to pay for critical services.