The Unclaimed Property Gap: Where South Dakota Stands — And How We Close It

South Dakota families have nearly $1.2 billion in unclaimed property liabilities waiting to be returned to them. That’s not a projection. That is not an estimate. That is what our own State Treasurer’s office reports holding as outstanding claims.¹

But here’s the critical detail: the state maintains an Unclaimed Property Trust Fund of only $22.8 million to address this $1.2 billion liability.² That means we’re holding a financial obligation more than 50 times larger than the resources currently dedicated to fulfilling it.

To understand what that number really means, it helps to look back — and around.

How We Compare to Our Region

Wyoming, Montana, North Dakota, and Nebraska all operate unclaimed property programs similar to ours. They face the same legal framework, similar economic conditions, and comparable populations. So what are they holding as liabilities?

State

Total Unclaimed Property Held

Population (2025)

Per Capita Liability

South Dakota

$1.2 billion

935,100

$1,284 per resident

Wyoming

$85–$110 million

588,753

$144–$187 per resident

North Dakota

$104–$150 million

799,358

$130–$188 per resident

Nebraska

$200–$250 million

2,018,006

$99–$124 per resident

Montana

~$82 million

1,144,694

~$72 per resident

South Dakota is carrying roughly 10 times the per-capita unclaimed property liability of any neighboring state.³

This isn’t a regional pattern. This is an anomaly. And it tells us something important: the problem isn’t unique to South Dakota’s economy or demographics. It’s a stewardship issue.

The Growth of the Problem — And Where We’ve Been

Here’s the trajectory that matters most. In 2018, South Dakota’s total unclaimed property liability stood at approximately $449 million.⁴ Today, that liability has grown to $1.2 billion.⁵ That’s an increase of roughly $751 million in seven years — money that South Dakota families are owed but haven’t received.

This didn’t happen because the state’s economy tripled. It happened because the system is structured to accumulate liability faster than it returns money to families.

Setting the Performance Target: Wyoming’s Regional Leadership

What does operational excellence look like? Wyoming provides the regional benchmark. In recent years, the Wyoming State Treasurer’s Office has achieved a return rate of approximately 85 percent of unclaimed property reported over rolling three-year periods.⁶ That’s the standard South Dakota should aspire to — not as an unreachable ideal, but as a demonstrated reality in our own region.

For comparison, South Dakota’s most recent fiscal year (FY2025) saw the state collect a record $357 million in unclaimed property. But only 13.9 percent of that amount — $49.6 million — was returned to claimants.⁷ The remaining 86.1 percent sits in the liability column.

In fiscal year 2018, a different management approach produced a 33.2 percent return rate — more than twice what we’re seeing today.⁸

The Path Forward: Three Structural Fixes

Moving from $1.2 billion in liability back down toward regional norms — and matching Wyoming’s 85% return rate — requires more than good intentions. It requires three structural changes working together.

Fix #1: Amendment K — Removing the Perverse Incentive

In November 2026, South Dakota voters will decide Constitutional Amendment K, a measure that passed the legislature unanimously (House 69-0, Senate 35-0).⁹ Amendment K creates a dedicated trust fund for unclaimed property and ends the practice of treating this money as general fund revenue.

Here’s why that matters: Currently, the state has a financial incentive to not return unclaimed property quickly. Money that sits unclaimed becomes state revenue. Amendment K flips that incentive. Starting in July 2027, unclaimed property would go into a trust fund, where the state can only use interest and income for general fund purposes. The principal — the $1.2 billion that belongs to South Dakota families — stays protected and available for claims. General fund allocations from the trust would be capped and gradually decrease to $25 million annually by fiscal year 2035.¹⁰

This is structural governance reform. It removes the misaligned incentive that has allowed the liability to grow unchecked.

Fix #2: North Dakota’s Automatic Return Program — Operational Excellence

Structure alone isn’t enough. You also need execution. North Dakota offers a proven operational model. In 2025, the 69th North Dakota Legislative Assembly passed House Bill 88, authorizing an automatic return program for unclaimed property claims under $1,000.¹¹

Here’s how it works: The state’s Department of Trust Lands compares its unclaimed property database against verified tax records, identifies matches, and automatically mails checks to rightful owners — no claim filing required. This flips the burden. Instead of making families hunt for their money and navigate claim forms, the state proactively finds them and sends it back.

South Dakota should study this program, adapt it, and pass our own version. It’s the operational engine that will move us from our current 13.9% return rate toward Wyoming’s 85% regional benchmark.

Fix #3: Legislative Sunset Framework — Stopping Future Liability Growth

Amendment K fixes incentives. North Dakota’s model accelerates returns. But we also need to address the structural reality that, without sunset provisions, our unclaimed property liability will grow forever.

Most states currently provide perpetual rights to claim unclaimed property.¹² That’s generous to claimants — but it’s also the reason state liabilities compound decade after decade. A small number of states have adopted time limits: Connecticut uses a 10-year statute of limitations. Texas uses 4 years. New York uses 6 years.¹³

South Dakota should implement a tiered sunset framework that balances fair access for families with responsible liability management:

Out-of-State & Overseas Corporate Claimants: 5-year sunset.

Going forward, out-of-state and overseas corporations would have a maximum of five years to claim any unclaimed property ceded to the state. For property currently in the liability that is already five years or older, these corporations would have a two-year window from the date the legislation passes to make their claims.

In-State Corporate Claimants: 7-year sunset.

In-state corporations would have seven years from the date property is ceded to the state to file claims. For property currently in the liability that is seven years or older, these corporations would have three years from passage to claim it. Property currently in the liability at four to six years of age would have three additional years until it hits the seven-year mark.

Individual/Personal Claimants (Families & Heirs): 10-year sunset.

This aligns South Dakota with Connecticut’s model — one of the few states with responsible liability management for individual claims. Ten years is a generous window that protects families while preventing perpetual liability accumulation.

This framework prioritizes South Dakota families first (longest window), treats in-state businesses fairly, and puts a reasonable limit on out-of-state and overseas corporate claims — which make up a significant portion of the liability that is least likely to ever be claimed.

The Math of Getting Back to 2018

If these three fixes work in concert:

• Amendment K stops treating unclaimed property as a revenue source, aligning incentives toward returns

• North Dakota’s automatic return model dramatically accelerates how fast money reaches rightful owners — moving our 13.9% return rate toward Wyoming’s 85% benchmark

• The sunset framework prevents old, unclaimable liability from sitting on the books forever

Working together, these reforms could bring South Dakota’s unclaimed property liability from today’s $1.2 billion back toward the $449 million level of 2018 — and keep it declining from there. That’s not a promise. That’s a math problem with a solution.

Leadership Is Execution

This is where business leadership matters. In the private sector, when you identify a structural problem and a set of proven solutions, you don’t debate whether to act. You build a timeline, allocate resources, measure results, and hold yourself accountable.

I’ve spent my career doing exactly that. As the leader of a $100 million automotive group, I managed multi-location operations and made payroll every week. As Vice President of an $80 million real estate team here in South Dakota, I’m stewarding significant resources with daily accountability. And as a board member of a $2.5 billion financial institution, I’ve helped oversee fiduciary responsibilities at scale.

That experience teaches you something: the best leaders don’t just identify problems. They execute solutions.

If voters approve Amendment K in November 2026, the next Treasurer inherits a clearer structural framework. But that framework only works with leadership behind it. Here’s what I would do:

1. Study the North Dakota model. Send our team to meet with North Dakota’s Department of Trust Lands. Understand exactly how their automatic return program works and what results they’ve produced.

2. Draft legislation for South Dakota. Work with the legislature to pass an automatic return program modeled on North Dakota’s, plus the tiered sunset framework outlined above.

3. Set a target return rate. Move from 13.9% toward Wyoming’s 85% benchmark, with specific milestones and timelines. Publicly commit to the target.

4. Modernize the infrastructure. Invest in secure digital tools for real-time matching of unclaimed property to owners.

5. Report publicly and often. Quarterly returns data, monthly database updates, annual public accountability reports.

This Is About Stewardship

At its core, this is about stewardship. South Dakota families are owed $1.2 billion. We’re holding it in trust. The question isn’t whether we return it. Of course we do. The question is: how fast, how efficiently, and with what level of commitment.

Amendment K fixes the structural incentives. North Dakota’s model shows operational excellence. A tiered sunset framework ensures the liability can actually be reduced rather than grow forever. What’s needed now is leadership that combines all three — someone who understands that managing other people’s money isn’t a bureaucratic task. It’s a sacred responsibility.

That’s what I bring to this office.

Sources & Citations

1. South Dakota State Treasurer FY2025 Annual Report; Josh Haeder, KELO-TV interview, May 23, 2025 (“$1.2 billion of unclaimed property available to be claimed”). sdtreasurer.gov/transparency/annual-reports

2. South Dakota FY2025 Annual Comprehensive Financial Report (ACFR), Note 11 — Escheat Property; trust fund balance per legislation passed during 2025 legislative session (Sen. Taffy Howard, sponsor). bfm.sd.gov/ACFR/

3. Population data: U.S. Census Bureau Population Estimates (2025), sourced via Federal Reserve Economic Data (FRED, St. Louis Fed) for South Dakota (935,100) and Montana (1,144,694); Wyoming State Economic Analysis Division for Wyoming (588,753); North Dakota Governor’s Office press release (799,358); Nebraska Department of Environment & Energy (2,018,006). Unclaimed property figures from respective state treasurer and revenue offices.

4. South Dakota State Treasurer FY2018 Annual Report (final year, Sattgast administration); 2018 total unclaimed property liability of approximately $449 million. sdtreasurer.gov/transparency/annual-reports

5. Josh Haeder, KELO-TV interview, May 23, 2025; South Dakota FY2025 ACFR, Note 11.

6. Wyoming State Treasurer’s Office news releases and performance metrics; Sweetwater NOW, KGAB Radio coverage of Wyoming Unclaimed Property Division reporting approximately 85% of money reported over rolling three-year periods. statetreasurer.wyo.gov/unclaimed-property/

7. South Dakota State Treasurer FY2025 Annual Report: $357,147,335 collected; $49,593,265 returned = 13.9% return rate. sdtreasurer.gov/transparency/annual-reports

8. South Dakota State Treasurer FY2018 Annual Report (Sattgast final year): $82,042,338 collected; $27,207,055 returned = 33.2% return rate. sdtreasurer.gov/transparency/annual-reports

9. South Dakota Legislature, Senate Joint Resolution 505 (SJR 505); passed Senate 35-0 and House 69-0 (March 5, 2025). South Dakota Constitutional Amendment K on November 3, 2026 ballot. sdlegislature.gov; sdsos.gov/elections-voting

10. South Dakota Searchlight, “Lawmakers aim to stabilize ‘volatile’ unclaimed property revenue with trust fund,” February 18, 2025; Ballotpedia — South Dakota Constitutional Amendment K (2026). General fund allocations capped and declining to $25 million by FY2035. southdakotasearchlight.com; ballotpedia.org

11. North Dakota Department of Trust Lands, “Press Release: North Dakota Unclaimed Property Division will be automatically returning verified single-owner properties up to $1,000.” Passed by 69th Legislative Assembly as House Bill 88, 2025 legislative session. land.nd.gov

12. Unclaimed Property Professionals: “Unclaimed Property Claim Statutes of Limitations and Sunset Laws by State.” Most states follow the Uniform Unclaimed Property Act (UUPA), which provides perpetual rights to claim. unclaimedpropertyprofessionals.com

13. Connecticut General Law Section 36a-623 (10-year statute of limitations); Texas Property Code Section 72.252 (4-year); New York General Obligations Law Section 213 (6-year). Compiled via Unclaimed Property Professionals state-by-state reference.