State Treasurer David McRae told Columbus Rotarians Tuesday that the average Mississippian has $2,100 of unclaimed property.
Unclaimed property, or “abandoned” money that has had no activity for five years, continues to add up as time goes on, McRae said. As treasurer, he has made it a priority to find the rightful owners to this capital within the state. He said collecting this unclaimed property not only helps people in local communities, but also is a tax free way to help the economy.
“We (will) give back about $650 million by probably August,” McRae said. “That’s a huge benefit to the state of Mississippi without raising taxes. That puts money into your pocket.”
People interested in seeing if they have unclaimed property can visit the state treasurer’s website.
Since assuming his role in 2019, McRae has been able to increase the state’s investments by $100 million. The bond rating of the state was AA- when he took over but due to hard work and collaboration, it has increased to AA+, something McRae said he is extremely proud of accomplishing.
“What that means, think of your credit rating,” McRae said. “The lower your credit rating, the more money you’re going to have to use to borrow. Your interest rate is higher, but we have a great interest rate. That’s how we’ve been able to generate so much revenue into the state, by saving money on the back end of things.”
Mississippi’s credit rating has beaten out credit rates of large states, such as Texas, Ohio and Maryland.
Mississippi did not issue a bond bill during this legislative session, something McRae said he believes will be beneficial to the state.
Because of the available revenue in the state, Mississippi will pay upfront for all of its monetary needs rather than borrowing money, which in turn will immediately save the state $3 million and $9 million over time.
“Anytime you pay cash for something and don’t have to borrow money, it’s a great thing,” McRae said.
McRae said the single best investment for the future of children is a college savings account.
The average Mississippian graduates with roughly $30,000 in debt. McRae said Mississippi has become a “brain drain” — students go to college in Mississippi, accumulate debt, cannot get a job in the state and move somewhere else. McRae said when parents establish college saving accounts for their children, it not only saves money, but can help students stay in Mississippi after they graduate.
“College is always going to go up in price,” McRae said. “… I encourage anyone who doesn’t have a college savings account to go ahead and lock in the cheaper rate today because I can almost guarantee that for a child born today that in 18 years, college will be definitely more expensive.”
During the session, the Mississippi legislature passed a state income tax reduction bill, which McRae mentioned he is in support of. This new bill would eliminate income tax to 4 percent over the six years, and the legislature will reevaluate after that time period to see if Mississippi has hit the desired revenue markers.
With sales tax revenue continuously increasing, he said flat tax is a great way to see if revenue is reaching its target and would like to see if this is the best method to reduce income tax within the state.
“I think as a Republican and I think as a fiscal conservative state, I think this a great approach to see if things work out,” McRae said.
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