
The National Child Support Enforcement Association recently held a Webinar on “How to Prevent Child Support Cuts.” According to the NCSEA, “a cut in enforcement funds approved by Congress last year threatens to deprive children of $11 billion in support owed to them over 10 years.” To learn more about the Webinar, click here.
The NCSEA and the child support enforcement industry push the idea that collections will drop or collapse if federal reimbursement funds are reduced. As I’ve discussed on numerous occasions, this is a myth. In my co-authored column Federal Child Support Enforcement Cuts Will Hurt Bureaucrats, not Children (Las Vegas Review-Journal & others, 12/17/05), I explained:
“Child support enforcement officials are sounding the alarm over proposed cuts in the federal funds that subsidize states’ child support enforcement efforts. The cuts, which recently passed the House, will reduce federal reimbursement from 66% of the states’ costs to 50% over five years.
“According to the Congressional Budget Office, this will lead to $24 billion in child support going uncollected over the next 10 years. Texas Attorney General Greg Abbott and Los Angeles County Child Support Services Department Director Philip Browning are warning that the cuts will mean a drastic reduction in the amount of child support collected. A bipartisan group of senators has penned a letter opposing the cuts, explaining that ‘in 2004, more than $4 was collected in support for every dollar invested in the program.’ All of these claims, however, are based on false assumptions and misleading data.
“It is true that federal figures show that over $20 billion in child support is collected nationwide yearly, and that only $5 billion is spent on enforcement. However, the vast majority of the funds collected are not done through enforcement tacticsâ€â€they’re simply the payments already being made by law-abiding noncustodial parents. These payments will continue to be made regardless of the cuts. The myth that child support enforcement is a bargain was created by incorrectly counterposing total collections with expenditures on enforcement.
“In reality, much if not most child support enforcement funds are frittered away in misguided attempts to collect artificially inflated paper arrearages from low-income men who couldn’t possibly pay them…
“For example, a recent Urban Institute study found that only 25% of California’s $14.4 billion child support arrearage will be collected over the next decade because the support amounts demanded of noncustodial parents are not realistic. The average arrears owed per debtor is $3,000 higher than the median annual earnings of employed child support debtors. Those in the poorest category have a child support debt amounting to their full net income for seven and a half years…ÂÂ
“It is true, as critics of the cuts say, that the amount of child support collected by child support enforcement programs has increased from $2.4 billion in 1977 (2004 dollars) to nearly $22 billion in 2004. However, most of this increase has nothing to do with enforcement. For one, there are far more children receiving child support now than there were in 1977, in part because of welfare reform, which has obligated the fathers of children on welfare to pay child support to the states. Also, the amount of child support demanded from noncustodial parents rose sharply during the 1980s and 1990s. In addition, whereas most child support used to be paid directly from the noncustodial parent to the custodial parent, today most child support goes through the state systems, creating the illusion of increased collections. ÂÂ
“For too long child support policies have been determined by politics instead of common sense; the mantra of ‘help women and children’ has allowed large-scale abuses and waste to go unchallenged. The proposed cuts won’t interfere with efforts to collect legitimate child support, but they will save taxpayers $15.8 billion over the next decade. They will also force some discipline and restraint onto an area of government which sorely needs it.”
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