Because of the General Assembly’s mismanagement of the escheats fund, UNC may not be able to award state-funded grants to every student who needs them.
The escheats fund is composed of revenue from unclaimed property. It consists of capital, which gains interest over time. If the state wants to keep the fund from dwindling, they should only spend what they make in interest off of the fund.
The escheats fund’s first priority is financial aid for public institutions. Irresponsibly, the General Assembly has ignored the purpose of the escheats fund in the last couple years.
But instead of planning ahead and drawing aid funding responsibly, the General Assembly has been taking more than the interest accrued.
This practice has caused the escheats fund to plummet, and its value is estimated to dip below $200 million, forcing the legislature to take drastic action to make up the loss.
This may involve another raise in tuition or a cut in the amount of financial aid given out. But one thing is for sure: It is going to hurt North Carolina’s students.
The escheats fund provides for 83 percent of state-funded grants. If the General Assembly’s spending woes do not change, students would have to find other ways to pay for college, and many may not be able to make ends meet.
Improper management of the fund in the good times has led to a potential nightmare in the bad times. Lawmakers must now find a way to replenish the fund, or push on to students an entirely avoidable burden.
This should be a lesson to those who poorly handled sensitive funds under the assumption that the consequences could be put off.
