States Profit from Unclaimed Money: Millions Returned to Residents
Michigan's unclaimed property program collects hundreds of millions of dollars each year but returns less than half to rightful owners, pocketing over $611 million in the past five years. Critics argue that the state should implement automatic repayment and other reforms to improve return rates, but Michigan officials have little motivation to do so as unclaimed money helps balance the state's budget. The state's online system allows potential owners to claim lost property, but properties under $50 are not listed. Michigan's 48 percent return rate is far behind other states with automatic repayment programs. The state also uses unclaimed property proceeds for discretionary spending, including pork projects. Critics call for greater scrutiny and reforms to ensure more money is returned to owners.