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Territorial Dispatch

State Error Nets Sutter County Interest Windfall

Mar 24, 2026 11:23AM ● By Susan Meeker

Logo courtesy of Sutter County


SUTTER COUNTY, CA (MPG) - In a real life version of the Monopoly card that reads “bank error in your favor,” Sutter County briefly received just over $80 million from the state, though officials knew immediately the money was not theirs to keep. The real payout, though, is the interest earned while the county held the mistaken payment, estimated at a little more than $200,000.

Sutter County Auditor Controller Nathan Black told supervisors about the unusual situation during their March 10 meeting.

“This is a weird one,” Black said, explaining that the State Controller’s Office mistakenly transferred $105.9 million to Sutter County on Jan. 28 as part of the January 2026 K 12 principal apportionment payment.

Black said a technical error during final payment processing caused funds intended for 11 counties to be routed incorrectly, with Sutter County receiving the largest overpayment. The county was supposed to receive about $25.8 million, so the massive overpayment was left to sit in an interest-bearing account. Black said Finance staff quickly recognized the discrepancy and contacted the state. The State Controller’s Office later confirmed the error in a letter on Feb. 19 and requested the excess funds be returned.

Supervisors unanimously approved sending the money back, a required step under California Government Code when money is paid into a county treasury in error, but not before reacting to the oddity of the moment. One supervisor wondered how many similar mistakes the state might be making, while another joked about holding onto the money “until about Christmas.”

Because the funds were temporarily held in the county’s investment pool, Sutter County will keep the interest it earned as a consolation prize, officials said.