State Treasurer Andrew Sidamon-Eristoff says staffers found the funds in recent months by scouring through old bank accounts.
They uncovered money that was left over from several bond issues, some of which date back to the 1960s.
Sidamon-Eristoff hopes to use the funds to pay down a small portion of the state's massive debt.
But the final decision on how the money is used will ultimately be decided by the state Legislature.
Officials say the bank account review process started several months ago, when an analyst at the state's Management and Budget office began asking about the funds.
That review process is still ongoing, and Sidamon-Eristoff says more money may be recovered from the operation.