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A Return to Welfare As We
Knew It? The beginning of the end of child support reform
March 20, 2002
by Roger F. Gay
A
Georgia court has declared the state's child support guidelines unconstitutional.
The decision bans the use of a presumptively correct formula that produces
arbitrarily high awards, a universal practice in the United States since
1990. The consequences of a nationwide ban could extend well beyond
allowing courts to set child support awards at reasonable levels.
The judgment states three requirements
for constitutionally acceptable child support decisions. Both parents
have an equal obligation to support their children in accordance with
their relative means to do so; regardless of their gender and custodial
status. The amount awarded as "child support" must be limited to address
only the need for financial support of dependent children. Child support
awards must be rationally related to the relevant facts and circumstances
of each case.
Child support law existed in the thirteen
colonies and has existed in the states since the beginning of the nation's
history. Not surprisingly, the requirements presented in the Georgia
judgment are reminiscent of traditional law that developed through more
than two hundred years of case precedent. Federal reforms effectively
blocked the application of established legal principles by extending
the use of politically controlled formulae, known as child support guidelines,
to non-welfare cases. State courts have been required to apply their
state's formula in every child support case and presume that results
are correct.
Despite a federal requirement for states
to review their guidelines to assure that their use results in a just
and appropriate award in every case, no state has ever validated the
logic of their guidelines. According to child support collection entrepreneur
Robert Williams who is the primary designer of most state guidelines,
the objective was to increase the average amount of an award by two
and a half times. It is this practice in particular, arbitrarily increasing
awards by using a presumptively correct formula that the Georgia court
found unconstitutional.
Since the federal reforms took effect,
mathematical studies performed by the Project
for the Improvement of Child Support Litigation Technology (PICSLT)
have confirmed the necessity of the three principles in defining the
logic for properly determining child support awards. The overpayment
resulting from the use of guidelines has become known as hidden
alimony.
On the other side of the issue is a
strange coalition of special interest groups that profit from the current
system. These include state enforcement agencies, private collection
businesses, and women's groups that have sought higher financial benefits
for divorce. Billions of dollars in federal funding have driven the
system, creating a vast network of political friends.
It was the reforms themselves that were
largely responsible for bringing the child support collection industry
into existence. Private collection agencies, such as the one owned by
Robert Williams, keep approximately 15 percent of all the money they
collect. The government enforcement system is also rewarded by an increase
in federal funding in proportion to the amount collected. During the
1990s, these financial benefits led to a unique form of mutual support
and power sharing between government and private agencies under the
rubric of privatization.
The coalition exerted enormous influence
on government policy and managed a persuasive propaganda campaign against
a group they labelled "deadbeat dads." Promoters projected substantial
drops in welfare rolls by "forcing fathers to pay." Taxpayers were promised
significant savings. But the promise was not substantiated by credible
feasibility studies and the savings did not materialize. Significant
reductions in welfare dependency were only experienced along with a
general drop in unemployment.
The reforms drove many fathers into
debt and poverty, at times resulting in jail sentences for non-payment.
The new system decreased their ability to spend time with their children,
increased demands on temporarily unemployed fathers who sought reductions,
forced low income fathers to work in the cash economy to survive, and
even forced payments from some men who had never met the mother. Billions
of dollars have been collected that cannot be dispersed. The Georgia
court, rightly so, determined that the child support system subjects
parents, especially fathers, to unnecessary government interference.
Certain administrative procedures for
setting and enforcing child support awards have also been declared unconstitutional
in Michigan and Minnesota. Child support enforcement agencies exercise
powers reserved for the judiciary. States have done little to reform
their systems and it may take further action to compel states to operate
constitutionally.
The fate of the child support system
is largely in the hands of attorneys, who need to make greater efforts
to exercise the constitutional role of the judicial branch. At least
twenty billion dollars has been paid in court costs and attorneys' fees
in the process of arbitrarily increasing award amounts over ten years.
That is approximately the total amount of child support legally due
each year. Lawyers are now set to experience another windfall if guidelines
are determined unconstitutional throughout the country as millions of
non-custodial parents return to the courts to have their orders reduced
to reasonable levels.
The projected reduction in debt would
take much of the wind from the sails of the child support collection
industry, possibly eliminating financial influences that have distorted
welfare reform efforts for more than two decades. This in turn could
significantly reduce federal interest in operating a child support enforcement
system that manages non-welfare cases.
If courts are to continue to use child
support guidelines, greater emphasis needs to be placed on credible
engineering research and development. Designs need to be validated to
the extent possible before they are put into use and bad ideas need
to be rejected before they harm the public. The application of a presumptively
correct formula for determining child support awards is a profound deviation
from established constitutional process that demands careful and constant
scrutiny.
Roger F. Gay
Roger F. Gay is leader of the
Project for the Improvement
of Child Support Litigation Technology.
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