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May 1999 - Vol. 1, No 3

• OCSE Confirms States' Authority to Reduce Child Support Arrearages
• OCSE Issues Final Rule Clarifying Child Support Case Closure Policy
• Final TANF Rules Published
• Notable New Publications
• Violence Prevention Funding Opportunity
• Capital Hill Update

OCSE Confirms States' Authority to Reduce Child Support Arrearages

In a recent Policy Interpretation Questions (PIQ-99-03) memorandum to state child support (IV-D) directors, Federal Child Support Enforcement Commissioner David Gray Ross clarified the difference between a retroactive modification of arrears, prohibited by the Bradley Amendment, and the compromising of arrearages, which is not prohibited by federal law. When a custodial parent receives government benefits (e.g., TANF) that require the assignment of child support, the stateÑacting as the child support obligeeÑ has the authority to forgive the arrears, including that portion which would have been paid to the federal government. The memorandum states that the federal government's interest in its share of the distribution does not vest until support is collected. In other words, the state must share the child support it collects with the federal government, but it may establish its own policies regarding the actual collection or forgiveness of the child support debt.

The purpose of the memorandum is to encourage state child support enforcement directors to consider forgiving arrears in order to help families who remarry or reunite. Although its not mentioned in the memorandum, states could adopt the same practice for parents who live in separate households, and face an insurmountable arrearage owed to the state as repayment for welfare benefits. The memorandum is available online at http://www.acf.dhhs.gov/programs/cse/.

OCSE Issues Final Rule Clarifying Child Support Case Closure Policy

As of April 9, 1999, there are new OCSE rules regarding IV-D case closures. The new rules make it easier for states to close "unworkable" cases. If the noncustodial parent's name and Social Security Number is known, states may close the case after trying to locate the parent for three years without success. If a noncustodial parent's name is not known, states may close the case after one year.

The change, requested by the IV-D Directors' Association, is intended to increase cost efficiency and incentive payments to IV-D agencies. Absent this rule change, the incentive payment structureÑenacted through the Child Support Performance and Incentive Act of 1998Ñwould penalize a state for carrying a high number of open but unworkable child support enforcement cases.

The full impact of this rule change is not known, but there are some concerns that seem evident at this point. First, able-paying noncustodial parents who successfully evade child support enforcement may be let off the hook, giving the custodial parents less of an opportunity to collect the child support owed them. Second, it is not clear how the TANF agency will respond to a child support case that is closed for lack of information. Custodial parents who receive TANF benefits are required to cooperate with child support enforcement. If the child support agency has closed the case, the custodial parent and children may have TANF benefits sanctioned for non-cooperation.

Final TANF Rules Published

The Administration for Children and Families (ACF) published the final regulations governing the TANF program on April 12, 1999, in the Federal Register (Vol.64, No.69). The document, more than 1,200 pages in length, can be accessed online at access.gpo.gov/su_doc/aces/aces140. The American Public Human Services Association (APHSA) plans to analyze the content of the regulations and issue further information, and the Center for Law and Social Policy (CLASP) will be holding an Audio Conference, Final TANF Regulations and Workforce Regulations, in mid-May 1999, with details of the conference forthcoming. APHSA is located online at http://apwa.org To locate CLASP online, go to http://clasp.org.

Notable New Publications

A new report has been published by United for a Fair Economy, Shifting Fortunes: Perils of the Growing American Wealth Gap (March 1999). The report provides a current look at the worsening distribution of wealth and income in the United States, and offers recommendations for remedial action. Key findings of the report include:

1. As of 1997, the top 1% of households has more wealth than the entire bottom 95%.
2. Between 1983 and 1995, the inflation-adjusted net worth of the top 1% of households grew by 17%. The bottom 40% lost 80% of net worth, and the middle fifth of Americans lost over 11%.
3. In 1995, median net worth for black households was $7,400, and was $5,000 for Latino households. For white households, median net worth was $61,000.

Selected excerpts from the report are available online at http://www.stw.org/. For more information, or to order the report by phone, call (617) 423-2148 extension 10.

The Census Bureau has released a report, Child Support for Custodial Mothers and Fathers: 1995, as part of its Current Population Reports series. The report focuses on the child support income custodial parents with current awards received, and other provisions of child support awards. Detailed tables are available online at http://www.census.gov/. For further information, Census Bureau staff can be contacted at (301) 457-3242.

The National Council of Juvenile and Family Court Judges is publishing a volume entitled Effective Interventions in Domestic Violence and Child Maltreatment Cases: Guidelines for Policy and Practice (expected Summer 1999). The volume represents an effort to develop recommendations that support collaboration among child protective services, domestic violence service providers, and the judicial system in handling cases of domestic violence and child maltreatment. The volume can be ordered by contacting the National Council of Juvenile and Family Court Judges, Family Violence Department, P.O. Box 8970, Reno, Nevada, 89507, or by calling the Resource Center on Domestic Violence: Child Protection and Custody, at (800) 527-3223.

Violence Prevention Funding Opportunity

The Office of Juvenile Justice and Delinquency Prevention (OJJDP) has announced the availability of funds for a Safe Start Demonstration Project designed to prevent and reduce the impact of family and community violence on young children (birth to 6 years of age). Private organizations wishing to apply must be co-applicants or collaborative partners with a public agency (state or local government). Grant proposals must be received by June 14, 1999. To receive an application package, contact the OJJDP Juvenile Justice Resource Center at (301) 519-5535.

Capital Hill Update

The Violence Against Women Act of 1999 (H.R. 357), known as VAWA '99, was introduced by Reps. Conyers (D-Mich.), Morella (R-Md.), and Roybal-Allard (D-Calif.) early this year. The omnibus bill would continue and expand VAWA '94, adding new initiatives intended to make schools, streets, homes, and work places safe for women and children. A separate reauthorization package, H.R. 1248, has also been introduced which would safeguard the programs of VAWA '94 with full funding for an additional five years in the event that the VAWA '99 is not passed. For further information contact the National Coalition Against Domestic Violence, at (202) 544-7358.

On April 20, 1999, Reps. Hyde (R-Ill.) and Woolsey (D-Calif.) introduced H.R. 1488, the Compassion for Children and Child Support Enforcement Act of 1999. The bill would make the Internal Revenue Service responsible to the collection and disbursement of child support. Individual state courts and child support enforcement agencies would remain responsible for the establishment of paternity and child support orders and for the enforcement of medical support orders. The bill has been referred to both the House Ways and Means Committee and the Judiciary Committee.

Rep. Christopher Cox (R-Calif.) has introduced the Child Support Enforcement Act (H.R. 816). The bill would require a parent who is delinquent in child support to include the unpaid obligation in their gross income tax calculation. In turn, the custodial parent would be allowed a bad debt deduction for unpaid child support payments. The bill has been referred to the House Ways and Means Committee, where no action has been taken.

NOTE: The summary, status, and full text of each bill can be obtained online at http://thomas.loc.gov/