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                                                   Order Code RL32875




                  CRS Report for Congress
                                      Received through the CRS Web




        The Child Support Enforcement Program:
                           A Review of the Data




                                                      April 21, 2005




                                         Carmen Solomon-Fears
                                    Specialist in Social Legislation
                                   Domestic Social Policy Division




Congressional Research Service ~ The Library of Congress
           The Child Support Enforcement Program:
                     A Review of the Data

Summary
     The Child Support Enforcement (CSE) program is a federal/state program that
promotes self-sufficiency of families in which one of the biological parents is living
outside of the home by ensuring that noncustodial parents meet their financial
responsibility to their children. The CSE program provides several services on behalf
of children including parent location, paternity establishment, establishment of child
support orders, and collection and distribution of child support payments.

     In FY1978, families who received cash welfare comprised 85% of the CSE
caseload. By FY2003, they comprised only 17% of the CSE caseload and 9% of CSE
collections. In FY2003, former cash welfare recipients comprised 47% of the CSE
caseload and 40% of CSE collections. Families that had never received cash welfare
comprised 36% of the CSE caseload and almost 52% of CSE collections. This is
consistent with the underlying premise of the CSE program: as child support
becomes a more consistent and stable income source/support, former cash welfare
families will never have to return to the cash welfare rolls and families that never
resorted to cash welfare will never have to do so. In FY2003, the CSE caseload was
comprised of 15.9 million families. The CSE program is estimated to handle about
60% of all child support cases; the remaining cases are handled by private attorneys,
collection agencies, or through mutual agreements between the parents. All of the
data in this report are exclusively CSE program data.

     Before a state can enforce/collect a child support obligation, paternity must be
determined and a child support order must be established. During the period
FY1999-FY2003, the number of paternities established or acknowledged fell 5%
nationwide, from 1.6 million to 1.5 million. During the period FY1998-FY2002, the
number of cases with a support order established dropped 2% nationwide, from 11.5
million to 11.3 million.

     The CSE program is a program of paradoxes. The CSE program only collected
18% of the child support obligations for which it had responsibility in FY2003 (i.e.,
58% of all current collections and 7% of obligations that were past-due). But, during
the period FY1999-FY2003, child support payments collected by CSE agencies
increased 33% for the nation as a whole, from $15.9 billion to $21.2 billion. Child
support collections have continued to increase even though the CSE caseload has
declined. Although the number and percent of CSE cases with collections have been
increasing over time, the average monthly child support payment for families that
actually receive a payment has been decreasing and is relatively small, amounting to
only $221 per month in FY2003. Although states incurred a cost of $355 million for
the CSE program in FY2003 and the federal government incurred a cost of almost
$2.3 billion, $4.33 in child support was collected for every $1 spent on CSE
activities. The CSE program began as a welfare cost-recovery program; however, in
FY2003, 90% of CSE collections went to CSE families (rather than the federal
government or the states); the comparable figure in FY1979 was no more than 56%.
This report will not be updated.
Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

CSE Caseload . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Paternity Establishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Establishment of Child Support Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

CSE Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
    Child Support Collected on Behalf of TANF Families . . . . . . . . . . . . . . . . 21
    Collections on Current Support Obligations and Arrearage Payments . . . . 24

CSE Administrative Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Cost-Effectiveness of the CSE Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40


List of Figures
Figure 1. Child Support Enforcement Program: Collections and
     Expenditures: FY1978-FY2003, Selected Years . . . . . . . . . . . . . . . . . . . . . . 5
Figure 2. Child Support Enforcement Caseload,FY1978-FY2003 . . . . . . . . . . . . 7
Figure 3. Child Support Enforcement Caseload, FY1999-FY2003 . . . . . . . . . . 11


List of Tables
Table 1. Summary of National Child Support Enforcement Program
    Statistics, Selected Fiscal Years 1978-2003 . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 2. Child Support Enforcement Caseload, FY1978-FY2003 . . . . . . . . . . . . 8
Table 3. CSE Caseload, FY1999-FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Table 4. Paternities Established or Acknowledged, FY1999-FY2003 . . . . . . . . 13
Table 5. Paternity Establishment, FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 6. Number of Cases with Child Support Orders Established,
    FY1998-FY2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Table 7. CSE Total Collections, FY1999-FY2003 . . . . . . . . . . . . . . . . . . . . . . . 18
Table 8. Average Monthly CSE Collections per Case,
    by Category of Family, FY1999-FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table 9. Average Monthly Child Support Payments for Families with
    Collections, Selected Years, FY1978-FY2003 . . . . . . . . . . . . . . . . . . . . . . 19
Table 10. Average Monthly Child Support Payments in Cases with
    Collections, by State, FY1999-FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Table 11. Financial Overview of CSE Program, FY2003 . . . . . . . . . . . . . . . . . 22
Table 12. Child Support Collected on Behalf of TANF Families,
    FY1999-FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 13. Collections on Current Child Support Obligations,
    FY1999-FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Table 14. Current Child Support Payments, FY2003 . . . . . . . . . . . . . . . . . . . . . 27
Table 15. Child Support Arrearage Payments, FY2003 . . . . . . . . . . . . . . . . . . . 28
Table 16. Cases with Past-Due Child Support Payments (Arrearages),
    FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Table 17. Total CSE Administrative Expenditures, FY1999-FY2003 . . . . . . . . 32
Table 18. Federal Share of CSE Administrative Expenditures,
    FY1998-FY2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Table 19. State Share of CSE Administrative Expenditures,
    FY1998-FY2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Table 20. CSE Expenditures per CSE Case, Selected Years,
    FY1978-FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Table 21. Cost-Effectiveness Performance Level, FY1999-FY2003 . . . . . . . . . 38
Table 22. State and Federal "Savings" and "Costs" from Income and
    Expenditures Generated by the Child Support Enforcement Program . . . . 40
   The Child Support Enforcement Program:
             A Review of the Data

                                  Introduction
     The Child Support Enforcement (CSE) program (Title IV-D of the Social
Security Act) was enacted in January 1975 (P.L. 93-647). The CSE program is a
federal/state program that promotes self-sufficiency of families in which one of the
biological parents is living outside of the home by ensuring that noncustodial parents
meet their financial responsibility to their children. While the federal government
plays an important role in setting program standards and policy, evaluating state
performance, and providing technical assistance and training, states are responsible
for administering the CSE program (directly or through local CSE agencies and
family or domestic courts).

      All 50 states, the District of Columbia, Guam, Puerto Rico, and the Virgin
Islands operate CSE programs and are entitled to federal matching funds. To qualify
for federal matching funds, each state's CSE plan must be approved by the Office of
Child Support Enforcement (OCSE), Department of Health and Human Services
(HHS). States also are eligible to receive incentive payments, based on certain
performance indicators. The CSE program provides seven major services on behalf
of children: parent location, paternity establishment, establishment of child support
orders, review and modification of support orders, collection of support payments,
distribution of support payments, and establishment and enforcement of medical
support. CSE services are provided to both welfare and non-welfare families.

      Since 1975, the federal administration of the CSE program has been in the
OCSE, which was originally located in the Department of Health, Education, and
Welfare (HEW), renamed the Department of Health and Human Services (HHS) in
1979. From the beginning, OCSE has been required by law to review and approve
state CSE plans, establish standards for effective state CSE programs, provide
technical assistance to the states, assist them with reporting procedures, maintain
records of program operations and child support expenditures and collections, audit
state CSE programs, and prepare and submit an annual report to Congress. The
annual report to Congress has always included collection, expenditure, and caseload
data. In fact, Section 452(a)(10) of the Social Security Act stipulates that certain data
must be included in the annual report.

    In March 2004, the CSE program was cited by the Office of Management and
Budget (OMB) as being the most cost-effective program among all social services
                                           CRS-2

and block grant/formula programs reviewed government-wide.1 In FY2003, $21.2
billion was collected at a combined federal/state cost of $5.2 billion. Thus, in effect,
four dollars in child support was collected for every dollar spent. While the
extensive reforms made to the CSE program in 1996, 1997, and 1998 have helped
to significantly improve child support collections and the number of paternities
established, the CSE program has since its beginning in 1975 been a highly respected
and valuable program which has made much progress in achieving its original goals
of reducing public expenditures for actual and potential welfare recipients by
obtaining ongoing support from noncustodial parents, and establishing paternity for
children born outside marriage so child support could be obtained for them.

     Many commentators agree that the mission of the CSE program has changed
over the years. It began as a welfare cost-recovery program, but the Child Support
Enforcement Amendments of 1984 (P.L. 98-378) broadened the mission to reflect
service delivery. The criteria for making incentive payments to the states was
broadened in 1984 to include collections for non-welfare families. Some
commentators assert the service-delivery goal was reemphasized in 1996 legislation,
which established the "family first" policy. To help assure that former welfare
recipients stay off the TANF rolls,2 the "family first" policy requires that such
families are to receive any child support arrearage payments collected by the state
before the state and federal governments retain their share of collections.3
Additionally, the sharp decline in the cash welfare rolls and reduced expenditures on
cash welfare since the mid-1990s helped shift the program from recovering declining
costs for a smaller population to collecting and paying child support to nonwelfare
families.

     For the past 20 years (since the 1984 Amendments), the CSE program and major
changes or modifications to it have consistently had bipartisan congressional support.
Child support proposals that were introduced in the 106th, 107th, and 108th
Congresses, and that have been reintroduced in the 109th Congress, seek to fully
implement a "family first" policy by ensuring that more of the child support collected
on behalf of TANF families go to the family, and that all of the child support
collected on behalf of former-TANF families go to the family. In addition, the
proposed legislation has included additional child support collection
methods/enforcement techniques to ensure that noncustodial parents of all children
are made to be financially responsible for their children. These CSE proposals are
broadly supported but generally have been incorporated into the controversial welfare


1
 U.S. Department of Health and Human Services, Administration for Children and Families,
HHS News, Child Support Effectiveness Cited By OMB, Mar. 31, 2004.
2
 The Temporary Assistance for Needy Families (TANF) block grant replaced the Aid to
Families With Dependent Children (AFDC) program in 1996 as the federal government's
primary cash assistance program for poor families with children.
3
  An exception to this rule occurs when child support is collected via the federal income tax
refund offset program. In federal income tax refund offset cases, the child support arrearage
payment (up to the cumulative amount of TANF benefits which has been paid to the family)
is retained by the state and federal governments. In other words, if child support arrearages
are collected via the federal income tax refund offset program, the family does not have first
claim on the arrearage payments.
                                          CRS-3

reauthorization legislation, and therefore have not yet passed both houses of
Congress. (See CRS Issue Brief IB10140, Welfare Reauthorization: Overview of the
Issues.)

      Table 1 presents a summary of child support program statistics for the nation
as a whole over a 25-year time span. Between FY1978 and FY2003, child support
payments collected by CSE agencies increased from $1 billion in FY1978 ($2.7
billion in 2003 dollars) to $21.2 billion in FY2003 (an almost seven-fold increase,
adjusting for inflation). During that same period, the number of children whose
paternity was established (or acknowledged) through the CSE program increased by
1,274%, from 111,000 to 1.525 million; and the number of child support obligations
established increased by 269%, from 315,000 to 1.161 million. During that period,
the CSE caseload expanded from 4.146 million in FY1978 to 15.923 million in
FY2003, an increase of 284%. (The definition of "caseload" is explained in the next
section of this report.) CSE expenditures also increased tremendously, from $312
million in FY1978 ($801 million in 2003 dollars) to $5.213 billion in FY2003 (a
more than five-fold increase, adjusting for inflation). Expenditures per case
increased from $75 in FY1978 ($193 in 2003 dollars) to $327 in FY2003 (a 69%
increase, adjusting for inflation).

     Figure 1 graphically shows CSE collections and expenditures over the 25-year
period from FY1978-FY2003. The CSE program is estimated to handle about 60%
of all child support cases; the remaining cases are handled by private attorneys,
collection agencies, or through mutual agreements between the parents. All of the
data in this report are exclusively CSE program data.

      Although this report does not address some significant areas of the CSE
program (e.g., medical child support and child support collections that have not been
distributed), it examines CSE caseload, collection, and expenditure data over the
period FY1978-FY2003. (FY1978 is the first year of complete data and the data for
FY2003 are the most recent data available.) It also presents more detailed data on
collections, expenditures, paternity establishment, child support order establishment,
cost-effectiveness, and program financing impacts on the federal government and the
states for the five-year period FY1999-FY2003. All of the tables in this report are
based on data from OCSE, obtained from the OCSE Internet website. The
information is taken from state-submitted reports on program status sent to OCSE
quarterly for financial data and annually for statistical data. The reader should note
that the 25-year trend data for CSE collections and caseload have been disaggregated
into two categories: Temporary Assistance for Needy Families (TANF) cases and
non-TANF cases. Before 1997, TANF cases were Aid to Families with Dependent
Children (AFDC) cases and non-TANF cases were non-AFDC cases. Also, note that
the tables that display TANF cases, collections, or expenditures include foster care
cases as well, even though they are not labeled as such.4



4
 In 1984, Congress reinstated authority for state CSE agencies to secure (when appropriate)
an assignment to the state for any rights to support on behalf of Title IV-E foster care
children and to collect child support on behalf of those children. In FY2003 CSE collections
made on behalf of foster care cases amounted to less than 0.4% of total CSE collections.
                                                                                       CRS-4

    Table 1. Summary of National Child Support Enforcement Program Statistics, Selected Fiscal Years 1978-2003
                                                        (numbers in thousands, dollars in millions except as noted)

                    Measure                            1978        1982        1986        1990        1994        1996        1999        2000        2001        2002        2003


 Total child support collections                  $ 1,047      $ 1,770     $3,246      $6,010      $9,850      $
                                                                                                               12,019      15,901
                                                                                                                           $           $ 7,854
                                                                                                                                       1           $8,958
                                                                                                                                                   1           $
                                                                                                                                                               20,137      $
                                                                                                                                                                           21,176

 In 2003 dollarsa                                  $ 2,689     $ 3,230     $5,198      $8,202      $2,094
                                                                                                   1           $
                                                                                                               14,030      $
                                                                                                                           17,552      $ 9,071
                                                                                                                                       1           $9,701
                                                                                                                                                   1           $
                                                                                                                                                               20,598      $
                                                                                                                                                                           21,176

 -- Total TANF collectionsb                       $     472    $ 786       $1,225      $1,750      $2,550      $ 2,855     $ 2,482     $2,593      $2,592      $ 2,893     $ 2,972
 -- Total Non-TANF collections                    $     575    $ 984       $2,019      $4,260      $7,300      $ 9,164     13,419
                                                                                                                           $           $ 5,261
                                                                                                                                       1           $6,366
                                                                                                                                                   1           $
                                                                                                                                                               17,244      $
                                                                                                                                                                           18,204
 Total administrative expenditures                $     312    $ 612       $ 941       $1,606      $2,556      $ 3,049     $ 4,039     $4,526      $4,835      $ 5,183     $ 5,213
 In 2003 dollarsa                                 $     801    $ 1,117     $1,507      $2,192      $3,138      $ 3,559     $ 4,458     $4,835      $5,024      $ 5,302     $ 5,213
 Total CSE caseload                                    4,146       7,024       9,724   12,796      18,610      19,319      17,330      17,374      17,061      16,066      15,923
 -- TANF cases                                      3,542       5,545          7,220    5,872       7,986       7,380       3,724       3,299       3,093       2,807       2,759
 -- Non-TANF cases                                    604       1,479          2,503    6,925      10,624      11,939      13,606      14,075      13,967      13,259      13,164
 Percent of TANF cases with collections            12.9%       10.8%           8.1%    11.9%       11.6%       12.7%       24.5%       24.9%       25.0%       28.7%       29.2%
 Percent of Non-TANF cases with
 collections                                       41.2%       30.3%       31.4%       19.7%       29.8%       21.9%       41.8%       45.5%       47.9%       52.9%       54.5%
 Number of paternities established or
 acknowledged                                           111         173         245         393         676        1,058       1,600       1,554       1,568       1,527       1,525
 Number of support obligations
 established                                            315         462         731        1,022       1,025       1,093       1,220       1,175       1,181       1,220       1,161
 Total child support collections (dollars)
 per dollar of total administrative
 expenses                                          $     3.4   $     2.9   $     3.5   $     3.7   $     3.9   $     3.9   $     3.9   $     3.9   $     3.9   $     3.9   $     4.1

Source: Office of Child Support Enforcement, U.S. Department of Health and Human Services. Data converted into 2003 dollars by the Congressional Research Service.
Note: The CSE collections and caseload data have been disaggregated into two categories: Temporary Assistance for Needy Families (TANF) cases and non-TANF cases. Before
1997, TANF cases were Aid to Families with Dependent Children (AFDC) cases and non-TANF cases were non-AFDC cases. Also, note that the tables that display TANF cases,
collections, or expenditures include foster care cases as well, even though they are not labeled as such.
a. Adjusted for inflation using the Consumer Price Index, research series for urban consumers (CPI-U-RS).
b. Before FY2002, TANF collections are divided into state/federal shares and incentives are taken from the federal share thereby reducing the federal amounts. Beginning in FY2002,
     child support incentive payments are paid with appropriated funds.
NA­Not available.
                                                                              CRS-5

                            Figure 1. Child Support Enforcement Program: Collections and
                                     Expenditures: FY1978-FY2003, Selected Years
                          25,000




                          20,000




                          15,000
    Dollars in Millions




                                                                                                                Total CSE collections, in 2003 $
                                                                                                                Total CSE expenditures, in 2003 $


                          10,000




                           5,000




                              0
                                   1978   1982   1986   1990   1994   1996   1999   2000   2001   2002   2003
                                                                      Year



Source: Office of Child Support Enforcement, HHS, Annual Reports -- selected years. Figure
prepared by the Congressional Research Service.


                                                                  CSE Caseload
     OCSE defines a CSE "case" as a noncustodial parent (mother, father, or
putative/alleged father) who is now or eventually may be obligated under law for the
support of a child or children receiving services under the CSE program. If the
noncustodial parent owes support for two children by different women, that would
be considered two cases; if both children have the same mother, that would be
considered one case.

     Families who receive TANF cash benefits are required to assign their child
support rights to the state in order to receive TANF. In addition, such families must
cooperate with the state if necessary to establish paternity and secure child support.
Families receiving TANF cash benefits, Medicaid benefits, or whose children receive
Title IV-E foster care payments automatically are enrolled (free of charge) into the
CSE program.5 Collections on behalf of families receiving TANF cash benefits are
used to reimburse state and federal governments for TANF payments made to the


5
  In addition, several states have opted to require food stamp households to cooperate with
the CSE agency in establishing paternity and establishing and enforcing child support
obligations. These food stamp households also receive CSE services automatically, free of
charge.
                                          CRS-6

family (i.e., child support payments go to the state instead of the family, except for
amounts that states choose to "pass through" to the family as additional income that
does not affect TANF eligibility or benefit amount).6 Other families must apply for
CSE services, and states must charge an application fee that cannot exceed $25.
Child support collected on behalf of nonwelfare families goes to the family (usually
via a state child support disbursement unit).

      The CSE program defines a current assistance case as one in which the children
are: (1) recipients of cash aid under TANF (Title IV-A of the Social Security Act)
or (2) entitled to Foster Care maintenance payments (Title IV-E of the Social Security
Act). In addition, the children's support rights have been assigned by a caretaker to
the state, and a referral to the state CSE agency has been made. A former assistance
case is defined as a case in which the children were formerly receiving TANF or
foster care services. A never assistance case is defined as a case in which the
children are receiving services under the CSE program, but are not currently eligible
for and have not previously received assistance under TANF or foster care.

     Figure 2 shows the trend in the CSE caseload, separated by TANF cases and
non-TANF cases. Table 2 shows that TANF cases comprised 85% of the CSE
caseload in FY1978, but dropped to 17% of the caseload in FY2003. By the same
token, non-TANF cases represented only about 15% of the CSE caseload in FY1978,
and increased to 83% of the caseload in FY2003. Available data show that non-
TANF cases increasingly are families that formerly received TANF.

     In FY1999, OCSE started reporting data for the following categories: current
assistance, former assistance, and never received assistance rather than by TANF and
non-TANF. The data indicate that the number and percentage of CSE families who
currently receive TANF has decreased over time while the number and percentage
of CSE families who formerly received TANF has increased. The data also show
that the proportion of the CSE caseload comprised of families who had never
received TANF has remained relatively stable for the period FY1999-FY2003 (see
Figure 3). The decline in TANF families since 1994 (see Table 2), and the relative
stability of the segment of the caseload that had never been on the TANF rolls,
resulted in a smaller CSE caseload. Former TANF families represent the largest
portion of the total CSE caseload.

     In FY2003, the largest group of families who were participating in the CSE
program were families who had left the TANF rolls (i.e., former TANF families --



6
  While the family receives TANF cash benefits, the state is permitted to retain any current
support and any assigned arrearages it collects up to the cumulative amount of TANF
benefits which has been paid to the family. The 1996 welfare reform law (P.L. 104-193)
repealed the then $50 required pass through and gave states the choice to decide how much,
if any, of the state share (some, all, none) of child support payments collected on behalf of
TANF families to send the family. States also decide whether to treat child support
payments as income to the family. P.L. 104-193 required states to pay the federal
government the federal government's share of TANF collections. (As of Aug. 2004, 21
states were, on a monthly basis, providing a pass through and disregard up to $50 (higher
in a couple of states) of child support collected on behalf of TANF families.)
                                                                                                              CRS-7

47%, see Figure 3).7 Families who had never been on TANF represented 36% of the
CSE caseload and families who were currently receiving TANF benefits comprised
17% of the CSE caseload.8 Thus, although the majority of the CSE caseload is
comprised of non-TANF families, most of them at some point in their lives received
TANF/AFDC. This is consistent with the expanded mission of the CSE program.
The expectation is that as child support becomes a more consistent and stable income
source/support, these former TANF families will never have to return to the TANF
rolls, and families that never resorted to the TANF program will never have to do so.
In its strategic plan for the period FY2000-FY2004, the CSE agency stated:

             It is our commitment to lead the child support program into the new century as
             a key component to assist families to become self-sufficient or to remain self-
             sufficient. It is our vision that child support is an important line of defense
             against children living in poverty.9

                        Figure 2. Child Support Enforcement Caseload,
                                        FY1978-FY2003
             20,000,000


             18,000,000


             16,000,000


             14,000,000


             12,000,000

                                                                                                                                                                                                                Total CSE Caseload
     Cases




             10,000,000                                                                                                                                                                                         TANF Cases
                                                                                                                                                                                                                Non-TANF Cases

              8,000,000


              6,000,000


              4,000,000


              2,000,000


                    -
                          1978
                                 1979
                                        1980
                                               1981
                                                      1982
                                                             1983
                                                                    1984
                                                                           1985
                                                                                  1986
                                                                                         1987
                                                                                                1988
                                                                                                       1989
                                                                                                              1990
                                                                                                                     1991
                                                                                                                            1992
                                                                                                                                   1993
                                                                                                                                          1994
                                                                                                                                                 1995
                                                                                                                                                        1996
                                                                                                                                                               1997
                                                                                                                                                                      1998
                                                                                                                                                                             1999
                                                                                                                                                                                    2000
                                                                                                                                                                                           2001
                                                                                                                                                                                                  2002
                                                                                                                                                                                                         2003




                                                                                                              Year




Source: Office of Child Support Enforcement, HHS, Annual Reports -- selected years. Figure
prepared by the Congressional Research Service.



7
 Under the old jargon former TANF families would have been included among non-TANF
families.
8
 In FY2003, families currently receiving TANF comprised 17% of the CSE caseload and
received about 9% of CSE collections. In contrast, former TANF families comprised 47%
of the CSE caseload and received 40% of CSE collections. Families that have never been
on TANF comprised 36% of the CSE caseload and received almost 52% of CSE collections.
9
    See [http://www.acf.hhs.gov/programs/cse/pol/DCL/dcl-00-76.htm].
                                            CRS-8

 Table 2. Child Support Enforcement Caseload, FY1978-FY2003
                                  (numbers in thousands)

                                                                               Non-TANF
             Total CSE            Non-TANF TANF as % of                         as % of
    FY        caseload TANF cases   cases     caseload                          caseload
   1978            4,146    3,542         604       85.4%                             14.6%
   1979            4,899    4,175         724       85.2%                             14.8%
   1980            5,442    4,584         858       84.2%                             15.8%
   1981            6,266    5,113      1,153        81.6%                             18.4%
   1982            7,024    5,545      1,479        78.9%                             21.1%
   1983            7,516    5,828      1,688        77.5%                             22.5%
   1984            7,999    6,136      1,863        76.7%                             23.3%
   1985            8,401    6,242      2,159        74.3%                             25.7%
   1986            9,724    5,749      3,975        59.1%                             40.9%
   1987          10,635     5,776      4,859        54.3%                             45.7%
   1988          11,078     5,703      5,375        51.5%                             48.5%
   1989          11,876     5,709      6,168        48.1%                             51.9%
   1990          12,796     5,872      6,925        45.9%                             54.1%
   1991          13,423     6,166      7,256        45.9%                             54.1%
   1992          15,158     6,752      8,406        44.5%                             55.5%
   1993          17,125     7,472      9,653        43.6%                             56.4%
   1994          18,610     7,986     10,624        42.9%                             57.1%
   1995          19,162     7,880     11,282        41.1%                             58.9%
   1996          19,319     7,380     11,939        38.2%                             61.8%
   1997          19,057     6,462     12,595        33.9%                             66.1%
   1998          19,419     5,658     13,761        29.1%                             70.9%
   1999          17,330     3,724     13,606        21.5%                             78.5%
   2000          17,374     3,299     14,075        19.0%                             81.0%
   2001          17,061     3,093     13,967        18.1%                             81.9%
   2002          16,066     2,807     13,259        17.5%                             82.5%
   2003          15,923     2,759     13,164        17.3%                             82.7%

Source: Office of Child Support Enforcement, HHS, Annual Reports, selected years. Table prepared
by the Congressional Research Service.
                                  CRS-9

               Table 3. CSE Caseload, FY1999-FY2003
                        (numbers in thousands)

          State        1999         2000      2001      2002      2003
Alabama                     313         305       290       259       249
Alaska                       47          47        46        46        46
Arizona                     266         246       238       238       259
Arkansas                    129         150       142       131       128
California                2,030       2,029     1,963     1,906     1,838
Colorado                    169         146       138       134       138
Connecticut                 199         186       196       207       213
Delaware                     56          56        53        54        55
District of Columbia        117         128       114       108       105
Florida                     729         784       729       669       664
Georgia                     649         696       706       476       481
Guam                         11          11        12        12        12
Hawaii                       82          92        96        95        99
Idaho                        70          72        74        80        88
Illinois                    980       1,069       951       866       724
Indiana                     468         475       488       311       301
Iowa                        162         165       166       171       175
Kansas                      145         152       151       141       134
Kentucky                    286         304       299       312       314
Louisiana                   297         292       287       266       272
Maine                        61          62        63        65        64
Maryland                    343         346       321       310       313
Massachusetts               209         236       255       246       247
Michigan                    887       1,013     1,005       978     1,041
Minnesota                   224         229       235       240       245
Mississippi                 256         266       283       290       302
Missouri                    362         372       386       391       384
Montana                      39          38        39        40        41
Nebraska                    100          97        95        98        98
Nevada                      103         105        89        94       118
New Hampshire                41          40        37        37        38
New Jersey                  372         364       344       341       345
New Mexico                  101         107        84        70        70
New York                    997         987       979       899       887
North Carolina              489         504       462       426       418
North Dakota                 36          37        35        31        39
Ohio                        799         767       857       901       915
Oklahoma                    140         143       148       141       137
Oregon                      229         240       241       247       247
Pennsylvania                681         624       636       590       591
Puerto Rico                 225         235       235       237       237
Rhode Island                 64          63        64        70        68
South Carolina              239         225       227       225       219
South Dakota                 30          31        31        43        43
Tennessee                   487         436       443       350       359
Texas                     1,215       1,058     1,012       952       897
Utah                         85          81        76        75        75
Vermont                      23          25        25        24        24
                                          CRS-10

          State               1999          2000        2001       2002        2003
Virgin Islands                       13         NA          NA          11           11
Virginia                            416         392         380        362          350
Washington                          321         322         310        303          315
West Virginia                       127         128         131        116          110
Wisconsin                           362         353         349        340          341
Wyoming                              47          44          42         39           38
Totals                           17,330      17,374      17,061     16,066       15,923

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.
                                                   CRS-11

Figure 3. Child Support Enforcement Caseload, FY1999-FY2003

                                    Child Support Enforcement Caseload, FY1999




                                                                       TANF Cases
                                                                          21%



                 Never-TANF Cases
                        36%




                                                                   Former-TANF Cases
                                                                          43%




                                    Child Support Enforcement Caseload, FY2003




                                                                     TANF Cases
                                                                        17%




                Never-TANF Cases
                       36%




                                                                      Former-TANF Cases
                                                                             47%




Source: Figures prepared by the Congressional Research Service.
                                        CRS-12

                        Paternity Establishment
      A child born outside of marriage has a biological father but not a legal father.
Legally identifying the father of a child is a prerequisite for obtaining a child support
order. States generally follow a standard sequence of events in determining paternity.
In order to be part of the CSE program, states are required to have procedures which
permit the establishment of the paternity of a child at any time before the child
reaches age 18. Federal CSE law also requires states to have laws and procedures for
a simple civil process for voluntarily acknowledging paternity. Under such a process,
the state must ensure that the rights and responsibilities of acknowledging paternity
are explained to both parents and that due process safeguards are afforded to both
parents. The statute requires that voluntary acknowledgment procedures include
hospital-based programs that focus on the period immediately before or after the birth
of a child. FY2003 was the first year for which data are available in which more
fathers were legally identified through a voluntary paternity acknowledgment process
(862,000) than through the courts or administratively via the CSE agency (663,000).

     In FY2003, paternity was established or acknowledged for 1.5 million children
in the CSE program. Table 4 shows that during the period FY1999-FY2003, the
number of paternities established or acknowledged fell 5% nationwide, from 1.6
million in FY1999 to 1.5 million in FY2003. Over that period, the number of
paternities established or acknowledged in Kansas increased by 218%, from 7,347
in FY1999 to 23,356 in FY2003. In contrast, in New Mexico the number of
paternities established or acknowledged decreased by 85%, from 52,380 in FY1999
to 7,639 in FY2003.

     State performance on paternity establishment is calculated as a percentage of
either (1) all births in a given year for which paternity is established, or (2) all cases
in the state CSE program for which paternity is established. Table 5 uses all cases
in the state CSE program for which paternity is established as the base. Table 5
shows the paternity establishment performance measure for FY2003. For the nation
as a whole, the paternity establishment percentage (PEP) was 77%. In other words,
in FY2003, there were a little over 10 million children on the CSE rolls who had
been born outside of marriage, and the CSE agencies had determined paternity for 7.7
million of them. In FY2003, the PEP ranged from a low of 20% in the District of
Columbia to a high of 101% in Maine and Utah. The reader should note that Table
5 indicates that for some states the PEP was greater than 100%. This occurred
because paternity is established for more than just the children who were born outside
of marriage in the specified year. Most states acknowledge that while they have
made significant improvement in establishing paternity for newborns they are
performing poorly with respect to establishing paternity for older children.
                                    CRS-13

             Table 4. Paternities Established or Acknowledged,
                               FY1999-FY2003

                                                                          Percent
                                                                          change,
           State       1999      2000      2001      2002      2003      1999-2003
Alabama                 13,236     6,689     6,806     7,016     8,142        -38.5
Alaska                   2,811     3,055     2,995     3,086     3,298         17.3
Arizona                 39,105    43,515    48,287    43,648    48,135         23.1
Arkansas                 3,799     3,062    10,411    10,692    10,727        182.4
California             326,051   306,508   277,307   188,011   185,197        -43.2
Colorado                15,559    13,745    15,480    16,750    17,764         14.2
Connecticut             18,816    16,687    17,189    25,814    23,980         27.4
Delaware                 5,821     4,611     3,881     7,931     4,689        -19.4
District of Columbia     9,710     7,863     3,630     8,644     6,088        -37.3
Florida                 65,836    98,004    91,299    95,508    93,042         41.3
Georgia                 47,163    22,467    62,450    59,378    54,498         15.6
Guam                     2,162     1,905     2,619     2,269       164        -92.4
Hawaii                   3,710     3,937     5,198     5,671     9,800        164.2
Idaho                    6,747     6,071     7,399    11,229     8,308         23.1
Illinois                49,336    71,696    82,706    81,302    78,899         59.9
Indiana                 15,595    25,921    20,527     9,330     9,202        -41.0
Iowa                    10,364    10,561    10,117    10,856    11,674         12.6
Kansas                   7,347     8,571    17,454    19,456    23,356        217.9
Kentucky                14,600    16,000    16,318    19,929    19,735         35.2
Louisiana               26,851    20,496    15,206    18,591    19,703        -26.6
Maine                    3,504     3,372     2,688     2,887     2,291        -34.6
Maryland                28,458    32,959    29,016    27,405    27,476         -3.5
Massachusetts           24,518    25,197    23,887    18,878    19,895        -18.9
Michigan                49,026    49,878    52,659    45,140    62,783         28.1
Minnesota               19,594    26,875    20,399    20,524    23,742         21.2
Mississippi             40,349    19,420    19,111    17,836    14,548        -63.9
Missouri                23,652    31,880    32,843    33,076    33,630         42.2
Montana                  2,669     3,288     2,894     1,274     1,217        -54.4
Nebraska                 6,446     5,886     6,028     6,147     6,879          6.7
Nevada                   2,817    18,765     2,081     2,851     4,370         55.1
New Hampshire              936     1,411     1,398     1,280     1,214         29.7
New Jersey              41,811    36,987    37,538    36,183    36,872        -11.8
New Mexico              52,380    10,992    11,814     5,186     7,639        -85.4
New York                90,711   102,368   102,104   103,877   104,488         15.2
North Carolina          23,431    29,875    36,309    48,383    45,684         95.0
North Dakota             8,194     7,478     6,839     6,932     8,221          0.3
Ohio                    96,813    67,223    53,602    53,739    52,965        -45.3
Oklahoma                17,961    13,694    13,995    13,415    13,865        -22.8
Oregon                  14,567    16,239    13,496    14,824    13,482         -7.4
Pennsylvania            56,051    61,300    72,091    74,140    65,671         17.2
Puerto Rico                 59        90       186    26,132    25,398     42,947.5
Rhode Island             3,187     3,747     3,314     3,175     5,496         72.5
South Carolina          17,867    16,853    18,906    19,553    17,343         -2.9
South Dakota             2,701     2,964     3,100     3,341     3,220         19.2
Tennessee               50,908    37,343    34,718    38,734    52,891          3.9
Texas                  126,187   126,940   144,468   150,537   141,321         12.0
                                            CRS-14

                                                                                       Percent
                                                                                       change,
          State             1999        2000        2001        2002        2003      1999-2003
Utah                          7,892       7,869       9,234       8,714       8,267          4.8
Vermont                         731         737         754       1,871       1,442         97.3
Virgin Islands                  NA          NA          NA           14          21          NA
Virginia                     36,417      35,086      34,822      33,615      29,227        -19.7
Washington                   27,901      27,700      30,083      29,411      27,930          0.1
West Virginia                 6,653       7,286       6,593       7,265       6,889          3.5
Wisconsin                    29,265      29,429      21,449      23,639      19,911        -32.0
Wyoming                       1,704       1,945       1,811       2,014       1,880         10.3

Total                     1,599,979 1,554,440 1,567,509 1,527,103 1,524,569                 -4.7

    Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
    Department of Health and Human Services.

                   Table 5. Paternity Establishment, FY2003
                                                    Children in CSE
                                                    cases for whom
                            Children in CSE          paternity was             Paternity
                          cases who were born        established or          establishment
           State           outside of marriage       acknowledged           percentage, 2003
Alabama                                 160,742                 117,441                    73.1
Alaska                                   18,125                  11,535                    63.6
Arizona                                 180,934                 116,054                    64.1
Arkansas                                 83,042                  73,151                    88.1
California                            1,403,875               1,220,901                    87.0
Colorado                                 77,118                  68,873                    89.3
Connecticut                             139,353                 113,177                    81.2
Delaware                                 49,186                  35,725                    72.6
District of Columbia                     77,841                  15,331                    19.7
Florida                                 444,037                 407,746                    91.8
Georgia                                 313,701                 160,572                    51.2
Guam                                     13,566                  10,792                    79.6
Hawaii                                   45,858                  32,591                    71.1
Idaho                                    48,670                  42,497                    87.3
Illinois                                633,443                 335,415                    53.0
Indiana                                 176,497                 130,723                    74.1
Iowa                                     86,400                  79,344                    91.8
Kansas                                   72,935                  64,733                    88.8
Kentucky                                170,559                 137,933                    80.9
Louisiana                               221,929                 170,269                    76.7
Maine                                    36,702                  37,011                   100.8
Maryland                                222,428                 168,233                    75.6
Massachusetts                           134,654                 104,229                    77.4
Michigan                                390,005                 302,640                    77.6
Minnesota                               150,931                 124,750                    82.7
Mississippi                             239,227                 155,214                    64.9
Missouri                                251,126                 214,931                    85.6
Montana                                  22,071                  22,033                    99.8
Nebraska                                 47,670                  38,327                    80.4
                                            CRS-15

                                                    Children in CSE
                                                    cases for whom
                            Children in CSE          paternity was             Paternity
                          cases who were born        established or          establishment
           State           outside of marriage       acknowledged           percentage, 2003
Nevada                                    72,263                 42,915                    59.4
New Hampshire                             25,513                 24,794                    97.2
New Jersey                               192,377                152,907                    79.5
New Mexico                                58,780                 40,531                    69.0
New York                                 513,056                380,018                    74.1
North Carolina                           304,858                285,190                    93.5
North Dakota                              17,213                 14,919                    86.7
Ohio                                     570,957                409,952                    71.8
Oklahoma                                 112,228                 57,045                    50.8
Oregon                                    86,816                 65,864                    75.9
Pennsylvania                             287,835                235,623                    81.9
Puerto Rico                               27,120                 25,733                    94.9
Rhode Island                              55,853                 37,427                    67.0
South Carolina                           182,326                147,936                    81.1
South Dakota                              16,927                 16,821                    99.4
Tennessee                                253,637                189,128                    74.6
Texas                                    606,771                413,476                    68.1
Utah                                      34,768                 35,167                   101.1
Vermont                                   15,765                 14,955                    94.9
Virgin Islands                             5,407                  2,516                    46.5
Virginia                                 229,065                186,168                    81.3
Washington                               167,357                155,980                    93.2
West Virginia                             60,574                 53,526                    88.4
Wisconsin                                213,300                202,990                    95.2
Wyoming                                   12,000                  9,970                    83.1
Totals                                10,035,391              7,713,722                    76.9

    Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
    Department of Health and Human Services.



               Establishment of Child Support Orders
         A child support order legally obligates noncustodial parents to provide financial
    support for their children and stipulates the amount of the obligation (current monthly
    obligation plus arrearages, if any) and how it is to be paid.

         Although the FY2003 national total is available for child support order
    establishment, the data for the individual states and territories have not yet been
    published. Therefore, data for the five-year period FY1998-FY2002 were used in the
    following table. Table 6 shows that during the period FY1998-FY2002, the number
    of cases with a child support order established dropped by 2% nationwide, from 11.5
    million in FY1998 to 11.3 million in FY2002. During that period, the District of
    Columbia established 40% fewer cases in FY2002 than it did in FY1998. In contrast,
    Hawaii established 72% more cases in FY2002 than it did in FY1998.
                                          CRS-16

            Table 6. Number of Cases with Child Support Orders
                       Established, FY1998-FY2002
                                                                                   Percent
                                                                                   change,
                                                                                    1998-
         State          1998        1999        2000        2001        2002        2002
Alabama                  227,642     188,636     172,224     172,951     171,787        -24.5
Alaska                    48,588      36,318      36,892      36,532      38,452        -20.9
Arizona                  187,430     124,563     134,097     140,993     149,328        -20.3
Arkansas                 114,700      91,420     100,993     103,633     102,961        -10.2
California             1,319,177   1,329,100   1,400,875   1,409,690   1,434,766          8.8
Colorado                 158,801     120,989     113,747     112,463     112,136        -29.4
Connecticut              166,060     122,186     119,327     125,622     132,409        -20.3
Delaware                  45,422      31,385      33,763      37,141      38,078        -16.2
District of Columbia      53,246      34,036      33,509      31,795      32,014        -39.9
Florida                  432,562     356,549     372,210     391,027     435,620          0.7
Georgia                  318,701     282,831     300,576     313,807     324,380          1.8
Guam                       5,520       5,594       5,707       5,909       6,054          9.7
Hawaii                    32,689      41,938      43,495      55,424      56,088         71.6
Idaho                     62,508      52,105      56,057      57,991      62,280         -0.4
Illinois                 226,967     304,117     320,704     336,386     353,188         55.6
Indiana                  164,696     243,134     244,849     244,552     219,561         33.3
Iowa                     178,757     139,137     142,144     145,054     150,027        -16.1
Kansas                    87,643      69,896      74,802      85,602      90,210          2.9
Kentucky                 206,323     183,398     196,734     204,658     218,822          6.1
Louisiana                147,627     140,883     145,990     166,596     178,942         21.2
Maine                     60,346      53,558      54,526      55,868      56,732         -6.0
Maryland                 207,674     218,139     211,721     211,504     212,566          2.4
Massachusetts            197,262     145,714     158,352     166,329     174,559        -11.5
Michigan                 794,709     638,704     714,138     762,254     745,135         -6.2
Minnesota                201,766     163,264     170,980     180,678     187,587         -7.0
Mississippi              144,490     122,165     130,682     139,287     144,546          0.0
Missouri                 306,242     257,504     274,548     294,127     308,247          0.7
Montana                   30,827      30,807      29,959      30,217      30,896          0.2
Nebraska                  90,480      71,176      72,446      72,875      74,628        -17.5
Nevada                    53,396      51,375      58,282      56,635      56,983          6.7
New Hampshire             40,617      31,328      31,401      30,497      30,669        -24.5
New Jersey               372,069     276,676     268,638     267,107     268,389        -27.9
New Mexico                18,714      26,871      28,183      29,837      31,140         66.4
New York                 866,226     614,854     647,050     661,395     656,700        -24.2
North Carolina           308,052     263,543     285,605     303,751     311,702          1.2
North Dakota              29,398      23,672      24,192      24,140      23,386        -20.5
Ohio                     700,456     573,827     596,813     625,300     643,410         -8.1
Oklahoma                  72,640      84,490      88,627      94,469      98,122         35.1
Oregon                   152,720     152,972     159,389     161,157     165,046          8.1
Pennsylvania             568,975     489,564     487,389     489,726     489,368        -14.0
Puerto Rico              145,814     137,532     146,810     146,368     151,074          3.6
Rhode Island              42,954      34,607      32,084      32,829      35,876        -16.5
South Carolina           119,945     144,198     147,969     149,464     150,078         25.1
South Dakota              31,496      24,341      25,039      25,888      26,734        -15.1
Tennessee                197,440     183,253     187,363     195,714     198,178          0.4
Texas                    475,657     547,806     590,232     633,327     656,579         38.0
Utah                      82,885      64,132      64,016      63,862      63,617        -23.2
Vermont                   24,010      20,198      21,067      21,557      20,853        -13.1
Virgin Islands             5,262       5,761         NA          NA        4,250        -19.2
Virginia                 269,272     266,841     265,869     283,587     289,918          7.7
                                           CRS-17

                                                                                      Percent
                                                                                      change,
                                                                                       1998-
       State           1998         1999         2000         2001         2002        2002
Washington              361,391      283,666      287,283      278,674      275,559        -23.8
West Virginia            62,485       76,477       78,545       85,450       86,703         38.8
Wisconsin               278,228      264,487      269,970      266,665      268,455         -3.5
Wyoming                  41,111       30,378       30,152       31,246       30,813        -25.0
Total                11,540,068   10,272,095   10,688,015   11,049,610   11,275,601         -2.3

   Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
   Department of Health and Human Services.


                                  CSE Collections
         Child support collection methods used by CSE agencies include income
   withholding, interception of federal and state income tax refunds, interception of
   unemployment compensation, liens against property, security bonds, reporting child
   support obligations to credit bureaus, regular billings, delinquency notices,
   garnishment of wages, revocation of various types of licenses (drivers', business,
   occupational, recreational), attachment of lottery winnings and insurance settlements,
   and seizure of assets held by public or private retirement funds and financial
   institutions. Income withholding accounted for 66% of total collections received
   (almost $16.7 billion) in FY2003. All jurisdictions also have civil or criminal
   contempt-of-court procedures and criminal nonsupport laws.

         Table 7 shows that during the period FY1999-FY2003, child support payments
   collected by CSE agencies increased 33% for the nation as a whole, from $15.9
   billion in FY1999 to $21.2 billion in FY2003. Child support collections increased
   in all states during the FY1999-FY2003 period, ranging from a 1% increase in
   Kansas to an 88% increase in Texas. Interestingly, child support collections
   continued to increase even though the CSE caseload declined. During the period
   FY1999-FY2003, the CSE caseload declined 8%, from 17.3 million in FY1999 to
   15.9 million in FY2003 (See Table 1).

        It appears that the broad array of child support collection/enforcement
   techniques has enabled states to provide some help to the entire spectrum of CSE
   families (i.e., current TANF families, former TANF families, and families that had
   never been on TANF/AFDC). During the FY1999-FY2003 period, CSE collections
   increased for each of the three segments of the CSE caseload. Table 8 shows
   average monthly child support collections per CSE case,10 by category of family, for
   FY1999 and FY2003. The greatest increase in collections occurred on behalf of
   former TANF families.

        Although the number and percent of CSE cases with collections have been
   increasing over time, the average monthly child support payment for families that


   10
     The reader should note that not all of these families actually receive child support
   payments; these numbers simply represent an average for each component of the entire CSE
   caseload.
                                       CRS-18

actually receive a payment has been decreasing over time. Table 9 shows that these
payments decreased by 46% over the period FY1978-FY2003, from $408 in FY1978
to $221 in FY2003 (if adjusted for inflation). Table 9 also shows that the average
monthly child support payment for families who actually received a payment was
relatively small, amounting to $221 in FY2003. Table 10 shows the variation by
state in average monthly child support payments for families that actually receive a
payment. In FY2003, average monthly child support payments for families who
received them ranged from a high of $300 in New Jersey to a low of $136 in
Mississippi. During the five-year period FY1999-FY2003, average monthly child
support payments increased 10%.

            Table 7. CSE Total Collections, FY1999-FY2003
                                 (dollars in millions)

                                                                              Percent
                                                                              change,
         State         1999      2000       2001         2002      2003      1999-2003
Alabama                   $186      $192       $200         $211     $223           20.1
Alaska                      67        71         78           81        79          18.2
Arizona                    169       197        212          230       234          38.0
Arkansas                   108       120        122          129       135          24.8
California               1,604     2,059      1,988        1,761     2,132          32.9
Colorado                   164       176        190          203       203          24.2
Connecticut                175       191        203          217       222          26.7
Delaware                    45        49         53           60        62          36.8
District of Columbia        35        35         38           41        44          26.1
Florida                    580       648        700          803       891          53.7
Georgia                    331       362        383          415       454          37.2
Guam                         8         8          7            8         8           8.6
Hawaii                      61        67         69           73        76          25.1
Idaho                       64        75         87           96       103          60.4
Illinois                   326       361        424          460       471          44.7
Indiana                    271       366        367          430       417          53.8
Iowa                       201       219        237          255       270          34.2
Kansas                     138       139        127          134       139           0.9
Kentucky                   206       226        249          281       281          36.3
Louisiana                  188       214        233          260       273          45.1
Maine                       81        89         95           96        98          21.0
Maryland                   350       368        379          396       409          16.9
Massachusetts              291       319        363          403       425          45.8
Michigan                 1,275     1,347      1,385        1,444     1,404          10.1
Minnesota                  443       477        512          537       559          26.2
Mississippi                129       144        158          169       175          35.8
Missouri                   286       339        373          411       433          51.5
Montana                     38        41         41           43        44          15.9
Nebraska                   111       142        160          143       147          32.7
Nevada                      92        79         84           91       100           8.2
New Hampshire               66        71         73           76        80          20.2
New Jersey                 635       679        725          775       815          28.3
New Mexico                  35        40         44           52        60          71.4
New York                   910     1,102      1,149        1,289     1,341          47.4
North Carolina             348       396        430          469       496          42.6
North Dakota                41        42         48           51        55          33.4
Ohio                     1,301     1,411      1,461        1,618     1,566          20.3
Oklahoma                    96       107        116          132       142          48.1
                                           CRS-19

                                                                                   Percent
                                                                                   change,
        State            1999        2000        2001         2002      2003      1999-2003
Oregon                       232         248         271          276       289          24.6
Pennsylvania               1,108       1,167       1,252        1,332     1,357          22.5
Puerto Rico                  166         183         196          212       232          39.9
Rhode Island                  44          48          49           53        53          18.6
South Carolina               174         188         208          224       233          33.8
South Dakota                  38          44          47           51        53          37.0
Tennessee                    224         248         276          318       354          57.7
Texas                        803         965       1,174        1,347     1,507          87.7
Utah                         107         118         127          133       137          27.7
Vermont                       35          39          41           42        42          21.0
Virgin Islands                 6           8           7            7         8          23.8
Virginia                     313         348         403          437       467          49.5
Washington                   516         549         573          591       597          15.8
West Virginia                109         120         137          151       157          43.6
Wisconsin                    533         569         584          574       578           8.5
Wyoming                       38          42          45           47        47          23.1
Total                     15,901      17,854      18,958       20,137    21,176          33.2

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

Note: Percentages are imprecise due to rounding of data.

        Table 8. Average Monthly CSE Collections per Case,
               by Category of Family, FY1999-FY2003
     Family category                       FY1999                         FY2003
 TANF Families                                              $33                         $55
 Former TANF Families                                       $54                         $96
 Never TANF Families                                       $129                        $157

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

Table 9. Average Monthly Child Support Payments for Families
       with Collections, Selected Years, FY1978-FY2003

             FY                        Current dollars             Constant 2003 dollarsa
           FY1978                          $159                            $408
           FY1982                          $155                            $283
           FY1986                          $177                            $283
           FY1990                          $219                            $299
           FY1996                          $253                            $295
           FY1999                          $201                            $222
           FY2000                          $206                            $220
           FY2001                          $212                            $220
           FY2002                          $215                            $220
           FY2003                          $221                            $221
                                            CRS-20

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

a. Adjusted for inflation using the Consumer Price Index, research series for urban consumers (CPI-
     U-RS).

  Table 10. Average Monthly Child Support Payments in Cases
           with Collections, by State, FY1999-FY2003
                                                                                       Percent
                                                                                       change,
          State            1999        2000        2001        2002         2003      1999-2003
Alabama                      $147        $149        $151         $154        $158            7.8
Alaska                       $204        $209        $224         $228        $219            7.5
Arizona                      $183        $193        $197         $208        $207           13.4
Arkansas                     $135        $145        $139         $151        $156           15.5
California                   $174        $215        $212         $185        $220           26.2
Colorado                     $163        $191        $223         $269        $284           74.5
Connecticut                  $194        $199        $209         $214        $220           13.3
Delaware                     $145        $150        $163         $180        $188           29.2
District of Columbia         $181        $187        $200         $200        $217           19.5
Florida                      $170        $177        $179         $189        $195           14.7
Georgia                      $138        $165        $171         $177        $187           34.8
Guam                         $199        $191        $109         $107        $103          -48.1
Hawaii                       $198        $198        $197         $200        $222           12.2
Idaho                        $188        $158        $171         $176        $179           -4.8
Illinois                     $167        $172        $183         $187        $193           15.7
Indiana                      $173        $216        $214         $250        $233           34.5
Iowa                         $172        $155        $160         $166        $166           -3.2
Kansas                       $254        $181        $165         $171        $174          -31.4
Kentucky                     $165        $168        $165         $177        $172            4.0
Louisiana                    $144        $156        $164         $175        $180           24.9
Maine                        $169        $180        $188         $194        $199           17.5
Maryland                     $203        $212        $214         $217        $224           10.1
Massachusetts                $246         $256       $279         $304        $273           10.7
Michigan                     $197        $236        $265         $265        $268           35.7
Minnesota                    $267        $273        $281         $292        $297           11.3
Mississippi                  $120        $125        $129         $135        $136           13.2
Missouri                     $164        $181        $190         $199        $206           25.0
Montana                      $138        $141        $144         $150        $149            7.9
Nebraska                     $216        $215        $234         $207        $207           -4.1
Nevada                       $271        $185        $185         $195        $200          -26.0
New Hampshire                $212        $225        $229         $235        $249           17.5
New Jersey                   $249        $259        $272         $284        $300           20.4
New Mexico                   $144        $170        $168         $181        $193           33.6
New York                     $189        $208        $217         $241        $252           33.2
North Carolina               $187        $149        $153         $159        $163          -12.8
North Dakota                 $215        $184        $197         $200        $206           -4.1
Ohio                         $497        $270        $253         $275        $266          -46.4
Oklahoma                     $245        $143        $150         $155        $170          -30.7
Oregon                       $180        $186        $201         $200        $205           14.1
Pennsylvania                 $234        $245        $252         $263        $263           12.4
Puerto Rico                  $161        $165        $172         $179        $191           18.8
Rhode Island                 $188        $199        $200         $209        $213           13.5
South Carolina               $162        $168        $174         $184        $189           16.7
South Dakota                 $863        $170        $179         $182        $186          -78.4
Tennessee                    $158        $169        $179         $186        $196           23.7
                                           CRS-21

                                                                               Percent
                                                                               change,
         State             1999       2000        2001     2002      2003     1999-2003
Texas                        $266       $265        $282      $226     $234         -11.8
Utah                         $173       $177        $186      $192     $195          12.9
Vermont                      $192       $202        $208      $220     $222          15.6
Virgin Islands                NA          NA         NA       $159     $165           NA
Virginia                     $153       $159        $172      $182     $189          24.2
Washington                   $200       $201        $205      $208     $210           5.0
West Virginia                $177       $192        $199      $213     $215          21.3
Wisconsin                    $217       $212        $220      $217     $220           1.3
Wyoming                      $179       $176        $175      $174     $173          -3.3
Total                        $201       $206        $212      $215     $221          10.1

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

Note: Percentages are imprecise due to rounding of data.

Child Support Collected on Behalf of TANF Families
     The reader should note that the child support payments made on behalf of TANF
children are paid to the state for distribution rather than directly to the family. If the
child support collected is insufficient to lift the family's income above the state's
TANF eligibility limit, the family receives its full TANF grant and the child support
is collected by the state and distributed to the state treasury and the federal
government in proportion to their assistance to the family. If the family's income,
including the child support payments, exceeds the state's TANF limitations, the
family's TANF cash benefits are ended and all child support payments are then sent
directly to the family (via the state's child support disbursement unit).

      When the CSE program was first enacted in 1975, welfare cost recovery was
one of the primary goals of the program. There has been movement away from this
goal, in part because of the changing nature of the CSE program. As discussed
earlier (in the Caseload Section), the size of the component of the caseload that is
comprised of TANF families is shrinking. Even though overall child support
collections increased by 33% over the five-year period FY1999-FY2003, child
support collections made on behalf of TANF families decreased by 27%. In FY2003,
only 17% of the CSE caseload was comprised of TANF families. Thus, the policy
shift from using the CSE program to recover welfare costs to using it as a mechanism
to consistently and reliably get child support income to families is not surprising. In
FY2003, only about 9% of CSE collections ($1.8 billion) were made on behalf of
TANF families; a little less than half of that amount (46%) actually went to the
families (pursuant to state child support "pass through" provisions), the rest was
divided between the state and federal governments to reimburse them for TANF
benefits to the families. This meant that in FY2003, 90% of CSE collections ($19.0
billion) went to the families on the CSE rolls. (See Table 11.)

     According to the CSE Preliminary FY2003 Data Report, payments to families
increased 6% from FY2002 to FY2003, and 41% from FY1999 to FY2003. In
FY2003, the percent of child support payments that went to families was 86% or
                                           CRS-22

more in 47 states; in seven states, the percentage that went to families exceeded
95%.11

        The CSE strategic plan for the period FY2005-FY2009 states:

        Child support is no longer primarily a welfare reimbursement, revenue-producing
        device for the Federal and State governments; it is a family-first program,
        intended to ensure families' self-sufficiency by making child support a more
        reliable source of income.12

         Table 11. Financial Overview of CSE Program, FY2003

Total CSE collections on behalf of families                                $21,176,389,882a
Collections for current TANF families                                        $1,815,261,394
-- State and federal reimbursement                          $957,868,488
-- Medical child support                                     $20,148,859
-- Payments to families                                     $837,244,047
Collections for former TANF families                                         $8,452,305,462
-- State and federal reimbursement                        $1,156,987,876
-- Medical child support                                     $56,716,916
-- Payments to families                                   $7,238,600,670
Collections for families who never received TANF                            $10,908,823,026
-- Medical child support                                     $21,476,462
-- Payments to families                                  $10,887,346,564

Child support paid to families                                              $18,963,191,281
Reimbursement to states & federal government                                 $2,114,856,364
-- State share                                              $948,255,175
-- Federal share                                          $1,166,601,189
Total medical child support                                                     $98,342,237

Total administrative expenditures                                            $5,212,570,124
-- Federal share                                           3,448,165,402
-- State share                                             1,764,404,722

Actual incentive payments to states                                            $461,000,000

Total program savings/costsb                                                -$3,097,713,760
-- Federal sharec                                        -$2,281,564,213
-- State shared                                            -$355,149,547




11
  U.S. Department of Health and Human Services, Administration for Children and
Families, Office of Child Support Enforcement, Child Support Enforcement FY2003
Preliminary Data Report, June 2004, at [http://www.acf.dhhs.gov/programs/cse/pubs/
2004/reports /preliminary_data/].
12
     See [http://www.acf.hhs.gov/programs/cse/pubs/2004/Strategic_Plan_FY2005-2009.pdf].
                                              CRS-23

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

a. Total CSE collections are equal to collections made on behalf of TANF families plus collections
     made on behalf of former TANF families plus collections made on behalf of families who had
     never received TANF [$1.815 billion + $8.452 billion + $10.909 billion = $21.176 billion].
     Total CSE collections also are equal to total child support paid to families plus total
     reimbursement to state and federal governments for TANF cash benefits paid to families plus
     medical child support [$18.963 billion + $2.115 billion + $98 million = $21.176 billion].
b. Total CSE program costs are equal to total reimbursement to the states and federal governments
     for TANF cash benefits paid to families minus total administrative expenditures [$2.115 billion -
     $5.213 billion = -$3.098 billion].
c. The federal share of CSE program costs are equal to the federal share of reimbursement for TANF
     cash benefits paid to families minus the federal share of administrative expenditures [$1.167
     billion - $3.448 billion = -$2.281 billion].
d. The state share of CSE program costs are equal to the state share of reimbursement for TANF cash
     benefits paid to families plus actual incentive payments to states minus the state share of
     administrative expenditures [($948 million + $461 million) - $1.764 billion = - $355 million].


     Table 12 shows child support collected on behalf of TANF families for the period FY1999-
FY2003, by state. As noted earlier, for the nation as a whole, child support collections made on behalf
of TANF families decreased by 27% over that five-year period.


 Table 12. Child Support Collected on Behalf of TANF Families,
                       FY1999-FY2003
                                       (in millions of dollars)

                                                                                          Percent
                                                                                          change,
         State              1999       2000         2001          2002        2003       1999-2003
Alabama                       $18         $12          $13           $13         $12          -32.1
Alaska                         18           17           17            16           5         -68.9
Arizona                        23           26           25            29          13         -43.3
Arkansas                       11           10           10            16          37         239.2
California                    620         751          695           583         297          -52.1
Colorado                       32           30           26            25          16         -51.2
Connecticut                    54           50           59            63          36         -34.2
Delaware                         7           7           10             7           4         -49.0
District of Columbia             5           4            4             5           3         -39.5
Florida                        73           75           70          296         296          305.4
Georgia                        48           44           41            43          32         -32.0
Guam                             2           1            1             2           1         -24.9
Hawaii                         10           12           13            12           5         -50.3
Idaho                            4           4            5             4           1         -69.1
Illinois                       73           81           56            50          15         -79.9
Indiana                        25           24           24            28          15         -41.2
Iowa                           44           44           51            87          75          70.4
Kansas                         29           28           17            20          10         -67.1
Kentucky                       36           34           34            36          17         -52.8
Louisiana                      18           16           18            18           8         -54.1
Maine                          33           34           33            30          17         -48.4
Maryland                       25           25           22            22          10         -59.8
Massachusetts                  54           47           44            47          27         -50.0
Michigan                      129         130            97          140           56         -56.9
                                              CRS-24

                                                                                        Percent
                                                                                        change,
        State              1999        2000        2001         2002        2003       1999-2003
Minnesota                      61           57          56           57           32        -47.6
Mississippi                    11            8           8            8            5        -55.0
Missouri                       37           47          46           51           20        -44.9
Montana                         6            6           5            6            3        -47.0
Nebraska                       13           12          16           15           10        -25.3
Nevada                          7            8           6            6            3        -64.0
New Hampshire                   9            9           8            8            6        -32.3
New Jersey                     73           66          63           63           30        -58.4
New Mexico                     11            8           8            9            3        -68.1
New York                      182          193         179          168           69        -62.2
North Carolina                 44           45          43           41           19        -56.5
North Dakota                    5            4           6            5            2        -52.0
Ohio                           94          100          82           80           29        -69.4
Oklahoma                       21           20          20           20            6        -72.5
Oregon                         24           23          22           25           13        -46.6
Pennsylvania                   97           95          99           99           54        -44.2
Puerto Rico                     2            3           2            2            2        -24.3
Rhode Island                   18           17          16           15           11        -39.8
South Carolina                 15           13          13           14           10        -33.1
South Dakota                   14           16          19           21           21         53.9
Tennessee                      30           31          38           46           43         41.6
Texas                         108           82         103          174          149         37.3
Utah                           20           19          21           21           11        -46.1
Vermont                         8            9           8            6            3        -59.1
Virgin Islands                  0            1           1            1            0        -76.8
Virginia                       38           36         139          148          144        282.5
Washington                     95           93          88           85           32        -66.3
West Virginia                   6           16          45           66           63        991.6
Wisconsin                      38           43          44           35           13        -64.4
Wyoming                         4            3           3            3            0        -92.3
Totals                      2,482        2,593       2,592        2,893        1,815        -26.9

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

Notes: Percentages are imprecise due to rounding of data. The data in this table do not include child
support collected by the state to reimburse itself and the federal government for TANF benefits made
to families who are no longer on TANF. Such assistance payments amounted to $1,156,987,876 in
FY2003. The addition of those assistance payments to the data in this table is reflected in the
summary table (Table 1) as Total TANF collections.

Collections on Current Support Obligations and Arrearage
Payments
     Table 13 shows that during the period FY1999-FY2003, CSE agencies
increased the amount they collected on current child support obligations for the
nation as a whole by 32%, from $11.9 billion in FY1999 to $15.7 billion in FY2003.
All but one jurisdiction (the District of Columbia) increased their collections on
current support during the period from FY1999 through FY2003. New Mexico
                                          CRS-25

increased its collections by 93%. Collections on current child support obligations fell
in the District of Columbia by 9%.

      In FY2003, $122.9 billion in child support obligations ($27.1 billion in current
support and $95.8 billion in past-due support) was owed to families receiving CSE
services, but only $22.2 billion was paid ($15.7 billion current, $6.5 billion past-due).
This meant that the CSE program only collected 18% of the child support obligations
for which it had responsibility. If current collections are examined separately, Table
14 indicates that the CSE program collected 58% of all current collections in
FY2003. If collections on past-due support (i.e., arrearages) are examined separately,
Table 15 shows that the CSE program collected only 7% of arrearage payments in
FY2003. Table 15 shows that the total amount of arrearages reported in FY2003 for
all previous fiscal years was $95.8 billion; however, $6.5 billion was collected in
FY2003.

      The CSE FY2003 Preliminary Data report states:

      In 1999, 53% of the child support cases had arrearages owed. In 2003, the
      proportion was up to 68%. We obtained collections in 60% of these cases, so we
      know that child support professionals are working hard on them and that obligors
      are trying to work on their debts. But we collected an average of $600 per
      arrearage case, while the average amount of arrears per arrearage case is $9,000.
      So, even though we're collecting significant amounts of arrears, we don't seem
      to be making a dent in the problem, and the overall debt continues to grow.13

      Table 16 shows that there were 10.8 million cases with arrearages due in
FY2003 and collections were made in 6.4 million of those cases. This meant that
60% of noncustodial parents who owed past-due support made some payment toward
their arrearages in FY2003. Tables 13 and 14 indicate that although a majority of
noncustodial parents who owe arrearages make some payment toward those
arrearages, the percentages of all arrearages paid remains small.

     Table 13. Collections on Current Child Support Obligations,
                           FY1999-FY2003
                                   (in millions of dollars)

                                                                                  Percent
                                                                                  change,
        State             1999        2000      2001          2002     2003      1999-2003
Alabama                     $105         $111      $148         $155      $169         60.6
Alaska                        45           45        46           49        52         15.3
Arizona                      128          146       154          156       161         26.2
Arkansas                      79           87        93           96       102         28.9
California                   930        1,026     1,107        1,171     1,243         33.6
Colorado                     114          125       135          146       155         36.3


13
   U.S. Department of Health and Human Services, Administration for Children and
Families, Office of Child Support Enforcement, Child Support Enforcement FY2003
Preliminary Data Report, June 2004, at [http://www.acf.dhhs.gov/programs/cse/pubs/2004/
reports/ preliminary_data/].
                                    CRS-26

                                                                        Percent
                                                                        change,
         State         1999     2000      2001      2002     2003      1999-2003
Connecticut               122       138       150      157       164         34.4
Delaware                   39        43        44       48        50         26.0
District of Columbia       40        33        27       35        37         -9.1
Florida                   442       479       517      624       691         56.5
Georgia                   263       281       305      331       359         36.6
Guam                        6         5         6        6         6          6.4
Hawaii                     48        51        55       58        59         24.8
Idaho                      48        58        67       74        79         65.2
Illinois                  289       222       255      300       318         10.1
Indiana                   203       267       285      303       311         52.7
Iowa                      133       176       173      188       201         50.9
Kansas                     84        87        89       91        94         11.8
Kentucky                  149       174       218      212       224         50.3
Louisiana                 144       154       170      191       205         41.9
Maine                      53        58        62       64        65         22.9
Maryland                  273       296       311      325       339         23.9
Massachusetts             231       260       298      311       329         42.5
Michigan                  909       905     1,033    1,053       978          7.6
Minnesota                 318       353       379      442       446         40.5
Mississippi                95       107       119      124       133         39.8
Missouri                  230       255       278      302       326         41.8
Montana                    29        31        31       33        34         19.0
Nebraska                   95       101       108      115       117         23.2
Nevada                     62        64        73       77        76         21.6
New Hampshire              53        57        59       61        61         14.9
New Jersey                528       562       595      639       679         28.6
New Mexico                 21        25        30       35        41         93.2
New York                  797       867       926      953     1,016         27.6
North Carolina            295       320       352      385       411         39.1
North Dakota               26        34        37       40        44         71.4
Ohio                    1,046     1,038     1,201    1,223     1,264         20.8
Oklahoma                   63        70        76       86        93         47.2
Oregon                    185       199       206      218       227         22.3
Pennsylvania              837       905     1,013    1,051     1,079         28.8
Puerto Rico               133       148       158      173       190         43.5
Rhode Island               26        35        39       41        42         60.5
South Carolina            130       128       162      165       172         32.7
South Dakota               34        34        37       40        41         21.8
Tennessee                 175       187       218      242       270         54.3
Texas                     556       785       826      943       985         77.1
Utah                       74        82        90       96       102         38.0
Vermont                    28        31        33       34        35         23.2
Virgin Islands              6                            6         7         18.3
Virginia                  257      289       322       346       367         42.6
Washington                380      407       427       447       458         20.5
West Virginia              83       85       106       114       119         42.5
Wisconsin                 429      458       471       454       447          4.2
Wyoming                    27       30        32        33        34         27.0
Totals                 11,895   12,914    14,151    15,063    15,704         32.0
                                           CRS-27

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

Note: Percentages are imprecise due to rounding of data.

         Table 14. Current Child Support Payments, FY2003
                                    (in millions of dollars)

                           Current child      Current child
                         support payments support payments      Current child
         State             due, FY2003      collected, FY2003 support percentage
Alabama                                $338                $169              49.9
Alaska                                   92                  52              55.7
Arizona                                 374                 161              43.2
Arkansas                                174                 102              58.3
California                            2,749              1,243               45.2
Colorado                                281                 155              55.2
Connecticut                             300                 164              54.8
Delaware                                 82                  50              60.7
District of Columbia                     74                  37              49.7
Florida                               1,226                 691              56.4
Georgia                                 705                 359              51.0
Guam                                     13                   6              44.6
Hawaii                                  116                  59              51.3
Idaho                                   146                  79              53.9
Illinois                                675                 318              47.0
Indiana                                 615                 311              50.5
Iowa                                    334                 201              60.0
Kansas                                  169                  94              55.3
Kentucky                                418                 224              53.6
Louisiana                               360                 205              56.9
Maine                                   117                  65              55.7
Maryland                                536                 339              63.2
Massachusetts                           540                 329              60.9
Michigan                              1,755                 978              55.7
Minnesota                               639                 446              69.9
Mississippi                             255                 133              52.0
Missouri                                619                 326              52.7
Montana                                  58                  34              59.1
Nebraska                                177                 117              66.3
Nevada                                  185                  76              40.9
New Hampshire                            95                  61              64.3
New Jersey                            1,044                 679              65.0
New Mexico                               83                  41              49.0
New York                              1,570               1,016              64.7
North Carolina                          665                 411              61.8
North Dakota                             62                  44              71.3
Ohio                                  1,880               1,264              67.3
Oklahoma                                193                  93              48.4
Oregon                                  379                 227              59.9
Pennsylvania                          1,442               1,079              74.8
Puerto Rico                             362                 190              52.6
Rhode Island                             68                  42              61.8
                                        CRS-28

                         Current child      Current child
                       support payments support payments      Current child
        State            due, FY2003      collected, FY2003 support percentage
South Carolina                        349                 172              49.2
South Dakota                           62                  41              67.1
Tennessee                             503                 270              53.7
Texas                               1,709                 985              57.7
Utah                                  174                 102              58.6
Vermont                                53                  35              65.8
Virgin Islands                         12                   7              53.1
Virginia                              614                 367              59.7
Washington                            711                 458              64.3
West Virginia                         189                 119              62.8
Wisconsin                             660                 447              67.7
Wyoming                                56                  34              60.9
Totals                            27,058               15,704              58.0

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.


       Table 15. Child Support Arrearage Payments, FY2003
                                 (in millions of dollars)

                        Arrearages due,            Arrearages
         State             FY2003              collected, FY2003   Percent collected
Alabama                            $2,340                      $83                3.5
Alaska                                597                       40                6.7
Arizona                             1,805                       97                5.4
Arkansas                              702                       45                6.4
California                         18,386                    1,007                5.5
Colorado                            1,143                       83                7.3
Connecticut                         1,496                       74                5.0
Delaware                              228                       18                8.0
District of Columbia                  342                       14                4.0
Florida                             3,833                      302                7.9
Georgia                             2,724                      141                5.2
Guam                                   96                        2                2.5
Hawaii                                533                       21                4.0
Idaho                                 376                       34                9.2
Illinois                            2,782                      188                6.8
Indiana                               513                      119               23.3
Iowa                                1,015                       83                8.1
Kansas                                543                       48                8.8
Kentucky                            1,364                       91                6.6
Louisiana                             844                       88               10.4
Maine                                 545                       35                6.4
Maryland                            1,429                      101                7.1
Massachusetts                       1,872                      112                6.0
Michigan                            8,012                      429                5.3
Minnesota                           1,368                      123                9.0
Mississippi                           714                       53                7.4
                                        CRS-29

                        Arrearages due,           Arrearages
        State              FY2003             collected, FY2003   Percent collected
Missouri                            1,926                     155                8.0
Montana                               186                      17                9.2
Nebraska                              566                      37                6.5
Nevada                                816                      37                4.5
New Hampshire                         184                      21               11.2
New Jersey                          2,121                     170                8.0
New Mexico                            581                      25                4.2
New York                            3,568                     342                9.6
North Carolina                      1,618                     131                8.1
North Dakota                          153                      15               10.1
Ohio                                4,060                     325                8.0
Oklahoma                              798                      59                7.4
Oregon                              1,129                      86                7.6
Pennsylvania                        2,243                     256               11.4
Puerto Rico                           827                      48                5.8
Rhode Island                          170                      14                8.1
South Carolina                        953                      70                7.4
South Dakota                          130                      15               11.8
Tennessee                           1,729                     114                6.6
Texas                               9,150                     528                5.8
Utah                                  331                      45               13.6
Vermont                               100                      12               12.3
Virgin Islands                         52                       3                4.9
Virginia                            2,005                     146                7.3
Washington                          1,783                     178               10.0
West Virginia                         778                      43                5.6
Wisconsin                           2,010                     121                6.0
Wyoming                               227                      19                8.3
Totals                             95,799                   6,462                6.7

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.
                                    CRS-30

     Table 16. Cases with Past-Due Child Support Payments
                     (Arrearages), FY2003
                                                               Child support
                       Arrearages due, Paying on arrearages,    arrearage
         State          FY2003 cases       FY2003 cases         percentage
Alabama                         181,346               88,380               48.7
Alaska                           38,027               25,721               67.6
Arizona                         148,366               75,433               50.8
Arkansas                        107,541               60,318               56.1
California                    1,225,178              679,167              55.4
Colorado                        119,683               72,462               60.5
Connecticut                     130,273               71,019              54.5
Delaware                         35,386               22,917               64.8
District of Columbia             30,924               11,437              37.0
Florida                         471,012              304,128               64.6
Georgia                         306,676              195,038               63.6
Guam                              5,641                2,584               45.8
Hawaii                           53,681               21,614               40.3
Idaho                            64,173               37,976               59.2
Illinois                        311,531              160,238              51.4
Indiana                         234,344              128,399               54.8
Iowa                            152,213               96,445               63.4
Kansas                           92,038               57,024               62.0
Kentucky                        206,681              104,722               50.7
Louisiana                       163,429               97,671              59.8
Maine                            53,470               31,850              59.6
Maryland                        194,177              121,088               62.4
Massachusetts                   154,686               93,490               60.4
Michigan                        630,563              371,962               59.0
Minnesota                       190,023              129,273               68.0
Mississippi                     139,625               82,187              58.9
Missouri                        267,864              136,140              50.8
Montana                          31,730               20,409               64.3
Nebraska                         66,860               39,553               59.2
Nevada                           61,741               37,793               61.2
New Hampshire                    30,205               21,810              72.2
New Jersey                      269,710              177,048               65.6
New Mexico                       34,625               21,890              63.2
New York                        584,733              349,920               59.8
North Carolina                  318,836              186,277              58.4
North Dakota                     26,069               17,932               68.8
Ohio                            602,872              399,687               66.3
Oklahoma                        101,983               58,527              57.4
Oregon                          158,471               97,610               61.6
Pennsylvania                    487,166              348,256               71.5
Puerto Rico                     139,217               72,920               52.4
Rhode Island                     28,954               16,550               57.2
South Carolina                  150,824               77,424               51.3
South Dakota                     28,915               20,011               69.2
Tennessee                       208,682              119,550               57.3
Texas                           692,905              431,701               62.3
                                        CRS-31

                                                                      Child support
                       Arrearages due, Paying on arrearages,           arrearage
        State           FY2003 cases       FY2003 cases                percentage
Utah                             74,105               48,747                      65.8
Vermont                          20,154               14,077                      69.8
Virgin Islands                    6,058                2,799                     46.2
Virginia                        286,999              165,009                      57.5
Washington                      285,355              196,503                     68.9
West Virginia                    84,836               50,351                      59.4
Wisconsin                       255,785              158,649                      62.0
Wyoming                          28,689               18,126                      63.2
Totals                       10,775,030            6,447,812                      59.8

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.



                 CSE Administrative Expenditures
      The CSE program is a federal-state matching grant program under which states
must spend money in order to receive federal funding. For every dollar a state spends
on CSE expenditures, it generally receives 66 cents from the federal government.
Although the actual dollars contributed by the federal government are greater, the
level of funding allocated by the state or local government determines the total
amount of resources available to the CSE agency. The federal government
reimburses each state 66% (more for paternity determination) of all allowable
expenditures on CSE activities. The federal government's funding is "open-ended"
in that it pays its percentage of expenditures by matching the amounts spent by state
and local governments with no upper limit or ceiling. It also refunds to states 90%
of the laboratory costs of establishing paternity.

      Table 17 shows that during the period FY1999-FY2003, total CSE
administrative expenditures increased 29%, from $4.0 billion in FY1999 to $5.2
billion in FY2003.

     Although total administrative expenditure data are available for FY2003, the
disaggregation of the data by state for the federal and state share of administrative
costs is currently available only through FY2002. In FY1998, CSE administrative
costs amounted to $3.585 billion. The federal government paid 66% of those CSE
costs ($2.384 billion) and the states paid 34% of the costs ($1.201 billion). In
FY2002, total CSE administrative costs amounted to $5.183 billion (see Table 17).
The federal government paid 66% of those CSE costs ($3.432 billion) and the states
paid 34% of the costs ($1.752 billion). (See Tables 18 and 19.)

     Table 18 shows that during the period FY1998-FY2002, the cost to the federal
government of CSE administrative expenditures for the nation as a whole increased
by 44% while the cost to states for CSE administrative expenditures increased by
46% (see Table 19). During that period, the cost to the federal government of the
CSE program in Nebraska increased by 104% (from $16.7 million in FY1998 to
$34.0 million in FY2002) and by 98% in Michigan (from $106 million in FY1998
to $210 million in FY2002). In contrast, the cost to the federal government of
                                      CRS-32

Hawaii's CSE program dropped by 49% (from $15.9 million in FY1998 to $8.1
million in FY2002). During the period from FY1998 through FY2002, the state
share of CSE administrative expenditures dropped in only two states (Hawaii, by
49%; and Mississippi, by 18%).

      Table 20 shows CSE administrative expenditures per CSE case for selected
years during the period FY1978-FY2003. CSE expenditures per case increased from
$75 in FY1978 ($193 in 2003 dollars) to $327 in FY2003 (a 69% increase, adjusting
for inflation).

        Table 17. Total CSE Administrative Expenditures,
                         FY1999-FY2003
                               (in millions of dollars)

                                                                          Percent
                                                                          change,
         State         1999     2000      2001       2002      2003      1999-2003
Alabama                  $54       $57       $54         $63      $64           16.7
Alaska                    18         22       22          21        22          20.7
Arizona                   59         61       59          61        59           0.6
Arkansas                  37         41       48          53        48          29.5
California               613       676       809        968       972           58.7
Colorado                  52         63       61          63        72          38.7
Connecticut               39         55       57          62        59          53.7
Delaware                  18         19       22          18        23          25.8
District of Columbia      13         16       20          18        24          84.9
Florida                  191       216       222        229       231           21.1
Georgia                   90       110       109         110      114           26.9
Guam                       4          3        6           5         4          15.8
Hawaii                    20         16       12          12        16         -20.1
Idaho                     10         20       22          20        20          89.5
Illinois                 139       159       180        176       192           38.1
Indiana                   39         51       61          57        55          42.3
Iowa                      43         55       47          48        51          20.8
Kansas                    50         51       55          57        50           0.9
Kentucky                  56         60       64          63        61           8.6
Louisiana                 47         47       57          57        57          20.6
Maine                     19         20       17          24        21          10.8
Maryland                  83       110        96        101         97          17.5
Massachusetts             75         96       74          73        82           8.9
Michigan                 164       247       291        318       297           80.6
Minnesota                113       120       128        137       143           26.0
Mississippi               31         31       28          25        25         -19.5
Missouri                  94       107       103          94        92          -2.4
Montana                   12         13       12          12        14          23.4
Nebraska                  32         38       49          51        47          48.1
Nevada                    38         41       33          40        40           4.7
New Hampshire             17         16       15          19        18           7.1
New Jersey               139       157       146         170      170           22.4
New Mexico                32         34       45          40        43          32.5
New York                 213       240       241         307      287           34.9
                                           CRS-33

                                                                                Percent
                                                                                change,
        State            1999       2000       2001        2002      2003      1999-2003
North Carolina             130          112       116          115       108         -17.2
North Dakota                10           10        12           12        12          17.0
Ohio                       274          302       359          345       335          22.2
Oklahoma                    32           43        45           52        50          56.5
Oregon                      42           50        45           52        53          24.9
Pennsylvania               184          199       185          200       206          12.1
Puerto Rico                 30           30        37           35        43          43.3
Rhode Island                11           12        12           13        12          12.9
South Carolina              37           39        48           40        39           5.6
South Dakota                 7            7         7            7         7          14.4
Tennessee                   52           56        60           77        70          34.1
Texas                      203          207       239          265       289          42.2
Utah                        36           37        37           37        36          -1.8
Vermont                      9           10        11           11        12          31.0
Virgin Islands               3            5         7            5         5          87.6
Virginia                    76           79        73           76        79           4.4
Washington                 118          129       134          127       140          18.7
West Virginia               29           31        32           33        37          27.9
Wisconsin                   97           90        99           97       101           4.0
Wyoming                      9           11        12           10         9           7.2
Totals                   4,039        4,526     4,835        5,183     5,213          29.1

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

Note: Percentages are imprecise due to rounding of data.
                                        CRS-34

 Table 18. Federal Share of CSE Administrative Expenditures,
                       FY1998-FY2002
                                 (in millions of dollars)

                                                                                Percent
                                                                                change,
         State         1998        1999        2000         2001     2002      1998-2002
Alabama                   $34         $36         $38          $37      $42          23.3
Alaska                      12         12           14          15        14         14.9
Arizona                     36         39           40          39        41         12.9
Arkansas                    23         24           28          31        35         54.4
California                341         405         447          536      640          87.6
Colorado                    30         34           42          40        42         41.3
Connecticut                 32         26           37          38        41         28.4
Delaware                    11         12           12          15        12         11.8
District of Columbia        11          9           11          13        12          9.0
Florida                   110         126         143          150      152          37.2
Georgia                     56         60           74          73        73         29.2
Guam                         3          3            2           4         3         22.7
Hawaii                      16         14           11           8         8        -49.0
Idaho                       10          7           13          15        13         36.9
Illinois                    79         92         105          119      117          47.1
Indiana                     27         26           34          42        38         41.5
Iowa                        26         29           36          31        32         22.2
Kansas                      27         33           35          36        38         41.8
Kentucky                    32         37           40          44        42         31.8
Louisiana                   28         32           31          39        38         34.5
Maine                       11         12           13          12        16         35.8
Maryland                    55         55           73          64        67         22.2
Massachusetts               40         50           64          49        48         21.2
Michigan                  106         109         165          194      210          98.2
Minnesota                   70         75           80          85        90         29.3
Mississippi                 20         20           21          19        17        -17.7
Missouri                    56         62           71          70        62         10.7
Montana                      8          8            9           8         8          6.7
Nebraska                    17         21           25          33        34        104.0
Nevada                      16         25           27          22        27         67.9
New Hampshire                9         11           11          10        13         40.4
New Jersey                  83         92         104           97      112          34.8
New Mexico                  15         21           22          31        26         69.4
New York                  133         141         159          160      203          52.6
North Carolina              73         86           74          77        76          4.0
North Dakota                 5          7            6           8         8         50.7
Ohio                      140         182         201          240      228          63.0
Oklahoma                    19         21           29          30        35         86.6
Oregon                      26         28           33          30        34         30.4
Pennsylvania                98        123         132          122      132          34.7
Puerto Rico                 18         20           20          24        23         29.9
Rhode Island                 7          7            8           8         8         26.4
South Carolina              22         24           26          33        27         23.7
South Dakota                 4          4            5           5         5         29.4
Tennessee                   34         35           38          40        51         50.7
                                            CRS-35

                                                                                    Percent
                                                                                    change,
        State              1998        1999        2000         2001     2002      1998-2002
Texas                          121        136          138         159       176         46.1
Utah                            21         24           24          25        24         13.9
Vermont                          5          6            7           8         7         46.0
Virgin Islands                   2          2            4           5         3        129.9
Virginia                        41         50           53          49        50         24.3
Washington                      84         78           85          89        84         -0.0
West Virginia                   16         19           21          21        22         33.9
Wisconsin                       60         65           60          66        64          7.1
Wyoming                          6          6            7           8         7          9.0
Totals                       2,384      2,680        3,006       3,222     3,432         43.9

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

Note: Percentages are imprecise due to rounding of data.

    Table 19. State Share of CSE Administrative Expenditures,
                         FY1998-FY2002
                                     (in millions of dollars)

                                                                                    Percent
                                                                                    change,
         State            1998        1999       2000        2001        2002      1998-2002
Alabama                     $17          $18        $19         $18          $21         24.6
Alaska                        6             6         7           7            7         15.0
Arizona                      18            20        20          20           21         14.5
Arkansas                     12            12        13          16           18         54.4
California                  174          208        229         273          327         88.1
Colorado                     15            18        21          21           21         39.0
Connecticut                  16            13        19          19           21         33.4
Delaware                      6             6         6           7            6         12.8
District of Columbia          5             4         5           7            6         15.0
Florida                      56            64        73          72           77         37.2
Georgia                      29            30        37          36           37         29.3
Guam                          1             1         1           2            2         23.4
Hawaii                        8             6         6           4            4        -49.2
Idaho                         5             4         7           7            7         37.2
Illinois                     41            47        54          61           59         45.3
Indiana                      15            13        17          18           19         30.8
Iowa                         13            14        19          16           16         26.3
Kansas                       13            17        17          19           19         43.7
Kentucky                     16            19        20          21           21         32.3
Louisiana                    14            16        15          18           19         35.5
Maine                         6             6         7           5            8         36.2
Maryland                     28            28        37          32           34         22.5
Massachusetts                20            25        32          25           25         23.7
Michigan                     54            56        82          97          108         98.4
Minnesota                    32            38        41          43           46         42.7
Mississippi                  10            10        10           9            8        -16.9
Missouri                     29            32        36          33           31          7.7
                                            CRS-36

                                                                               Percent
                                                                               change,
        State             1998       1999       2000       2001     2002      1998-2002
Montana                       4            4          4         4         4          6.6
Nebraska                      8           11         13        16        17        106.7
Nevada                        8           13         14        11        14         68.5
New Hampshire                 5            5          5         5         6         33.9
New Jersey                   42           47         53        49        58         37.3
New Mexico                    8           11         11        15        13         69.6
New York                     68           72         81        81       104         53.1
North Carolina               36           44         38        39        39          8.3
North Dakota                  2            3          3         4         4         65.1
Ohio                         63           93        101       119       116         85.2
Oklahoma                      9           11         14        15        17         88.3
Oregon                       13           14         17        15        17         30.5
Pennsylvania                 49           61         68        63        68         37.6
Puerto Rico                   9           10         10        12        12         28.6
Rhode Island                  3            3          4         4         4         27.2
South Carolina               11           12         13        15        14         22.8
South Dakota                  2            2          2         2         3         37.7
Tennessee                    19           17         18        20        26         37.0
Texas                        61           67         69        80        89         44.9
Utah                         11           12         13        13        12         16.7
Vermont                       3            3          3         4         4         46.2
Virgin Islands                1            1          2         2         2        131.9
Virginia                     20           25         26        24        26         26.1
Washington                   43           40         44        46        43          0.9
West Virginia                 8           10         10        10        11         35.0
Wisconsin                    31           32         30        34        33          6.7
Wyoming                       3            3          3         4         3         28.7
Totals                    1,201        1,359      1,519     1,613     1,752         45.8

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

Note: Percentages are imprecise due to rounding of data.
                                            CRS-37

   Table 20. CSE Expenditures per CSE Case, Selected Years,
                      FY1978-FY2003

                 FY                  Current dollars          Constant 2003 dollarsa
               FY1978                              $75                         $193
               FY1982                              $87                         $159
               FY1986                              $97                         $155
               FY1990                             $126                         $172
               FY1994                             $137                         $168
               FY1996                             $158                         $184
               FY1999                             $233                         $257
               FY2000                             $261                         $279
               FY2001                             $283                         $294
               FY2002                             $323                         $330
               FY2003                             $327                         $327

Source: Table prepared by CRS based on data from the Office of Child Support Enforcement,
Department of Health and Human Services.

a. Adjusted for inflation using the Consumer Price Index, research series for urban consumers (CPI-
     U-RS).



            Cost-Effectiveness of the CSE Program
     The CSE cost-effectiveness rate is the amount of child support collected for
each dollar expended (as defined in P.L. 105-200, the Child Support Performance
and Incentive Act of 1998). Table 21 shows that in FY2003, $4.33 in child support
was collected for every $1 spent on CSE activities, for an increase of 5% over the
FY1999 cost-effectiveness rate of $4.11. During the period FY1999-FY2003, the
cost-effectiveness rate fell by 39% in Michigan, from $7.81 in FY1999 to $4.79 in
FY2003. In contrast, the cost-effectiveness rate rose by 56% in Hawaii, from $3.25
in FY1999 to $5.08 in FY2003.

     The collection-to-cost ratio is not the sole measure of an effective program. In
the late 1990s, the CSE incentive payment system was revamped and Congress
designated four additional indicators as reliable performance measures. The five
performance measures in the CSE program currently are related to establishment of
paternity (see Table 5), establishment of child support orders (this performance
measure is not shown in this report), collections of current child support payments
(see Table 14), collections of past-due child support payments (see Table 14), and
cost-effectiveness (see Table 16).

     Table 22 shows the difference between income and expenditures generated by
the CSE program for both state and federal governments for FY1987-FY2003 (the
dollars have been adjusted for inflation -- i.e., converted to constant 2003 dollars).
The reader should note that state "savings" or "costs" were computed by subtracting
from total administrative expenses, the federal share of CSE administrative expenses,
                                         CRS-38

actual incentive payments to states, hold harmless payments to states, and the state
share of CSE collections. Similarly, federal "costs" were computed by adding
together the federal share of CSE administrative expenses, actual incentive payments,
and hold harmless payments and then subtracting the federal share of CSE
collections.14 Table 22 shows that the CSE program is no longer a "money-maker"
for states. Since FY2000, the states, in the aggregate, have not incurred a "savings"
on the CSE program; instead in aggregate states incurred a cost of $40 million on the
program in FY2000, $193 million in FY2001, $359 million in FY2002, and $355
million in FY2003. In contrast, the federal government has always "lost" money on
the CSE program. In FY1987, the federal government incurred a cost of $823
million on the CSE program and in FY2003 the CSE program cost the federal
government almost $2.3 billion.

     Part of the reason that the CSE program has been consistently "losing" money
is because non-welfare collections are growing at a faster rate than welfare
collections. While the state and federal governments share in a portion of welfare
collections, non-welfare collections go to the custodial parent via the state's
disbursement unit.

     Table 21. Cost-Effectiveness Performance Level, FY1999-
                              FY2003

         State             FY1999         FY2000   FY2001   FY2002              FY2003
Alabama                         3.78          3.66     4.01     3.64                3.78
Alaska                          4.41          3.89     4.14     4.49                4.24
Arizona                         3.29          3.72     4.12     4.25                4.47
Arkansas                        3.28          3.28     2.83     2.66                3.12
California                      2.78          3.23     2.61     1.91                2.31
Colorado                        3.65          3.23     3.58     3.66                3.22
Connecticut                     4.96          3.75     3.86     3.76                4.04
Delaware                        2.97          3.19     2.93     3.66                3.03
District of Columbia            3.27          2.64     2.26     2.69                2.09
Florida                         3.53          3.45     3.60     4.03                4.39
Georgia                         4.16          3.72     3.96     4.24                4.47
Guam                            2.25          2.67     1.33     1.64                2.10
Hawaii                          3.25          4.54     6.16     6.53                5.08
Idaho                           7.09          4.32     4.62     5.29                5.70
Illinois                        2.52          2.42     2.50     2.80                2.64
Indiana                         7.45          7.69     6.34     7.80                7.91
Iowa                            5.01          4.24     5.27     5.63                5.52
Kansas                          2.98          2.91     2.51     2.61                3.12



14
  Beginning in FY2002, child support incentive payments are no longer paid out of the
federal share of child support collections made on behalf of TANF families. Instead, federal
funds have been specifically appropriated out of the U.S. Treasury for CSE incentive
payments.
                                          CRS-39

         State              FY1999        FY2000   FY2001   FY2002     FY2003
Kentucky                         3.90         4.02     4.08     4.71       4.88
Louisiana                        4.41         4.92     4.38     4.87       5.11
Maine                            4.87         4.90     6.01     4.28       4.99
Maryland                         4.42         3.60     4.22     4.19       4.53
Massachusetts                    4.07         3.50     5.14     5.77       5.46
Michigan                         7.81         5.52     4.82     4.59       4.79
Minnesota                        4.06         4.11     4.13     4.05       4.05
Mississippi                      4.53         4.92     5.96     7.12       7.50
Missouri                         3.26         3.37     3.81     4.63       4.95
Montana                          3.87         3.58     3.91     4.10       3.63
Nebraska                         3.61         3.78     3.35     2.87       3.22
Nevada                           3.08         2.52     3.24     2.87       3.12
New Hampshire                    4.24         4.82     5.40     4.37       4.72
New Jersey                       4.86         4.60     5.27     4.83       5.06
New Mexico                       1.18         1.31     1.07     1.46       1.57
New York                         4.58         4.90     5.07     4.49       5.00
North Carolina                   2.93         3.86     4.04     4.43       4.99
North Dakota                     4.42         4.61     4.19     4.71       5.10
Ohio                             4.91         4.82     4.23     4.81       4.92
Oklahoma                         3.37         2.83     2.90     2.80       3.12
Oregon                           6.08         5.54     6.63     5.85       5.93
Pennsylvania                     6.21         6.05     6.98     6.85       6.80
Puerto Rico                      5.77         6.31     5.51     6.27       5.67
Rhode Island                     4.36         4.44     4.23     4.52       4.63
South Carolina                   5.06         5.08     4.60     5.87       6.32
South Dakota                     6.75         6.95     7.72     7.59       7.80
Tennessee                        4.69         4.85     4.99     4.50       5.47
Texas                            4.23         4.96     5.23     5.41       5.63
Utah                             3.24         3.47     3.69     3.89       4.13
Vermont                          4.15         4.02     3.90     3.93       3.78
Virgin Islands                   2.86         1.63     1.12     1.58       1.84
Virginia                         4.74         5.00     6.12     6.34       6.52
Washington                       4.68         4.53     4.55     4.95       4.54
West Virginia                    4.09         4.15     4.64     4.87       4.54
Wisconsin                        5.64         6.51     6.06     6.11       5.95
Wyoming                          4.84         4.33     4.09     5.00       5.57
Totals                           4.11         4.23     4.21     4.13       4.33

Source: Table prepared by the Congressional Research Service.
                                          CRS-40

     Table 22. State and Federal "Savings" and "Costs" from
    Income and Expenditures Generated by the Child Support
                      Enforcement Program
                           (in millions of constant 2003 dollars)

                   Year            Federal costs     State savings/costs
                   1987                         -823                544
                   1988                         -863                569
                   1989                       -1,024                534
                   1990                       -1,074                455
                   1991                       -1,160                529
                   1992                       -1,213                610
                   1993                       -1,384                610
                   1994                       -1,661                552
                   1995                       -1,990                490
                   1996                       -1,817                478
                   1997                       -1,962                564
                   1998                       -2,055                325
                   1999                       -2,380                  96
                   2000                       -2,606                 -40
                   2001                       -2,858                -193
                   2002                       -2,304                -359
                   2003                       -2,282                -355

Source: Table prepared by the Congressional Research Service, based on data from the Office of
Child Support Enforcement, Department of Health and Human Services.



                                    Conclusion
     The CSE program is a very complex, multi-faceted program.                    Its
purpose/mission has been evolving over the years, from welfare cost recovery and
income producer for the states, to delivery of services to custodial parents and
promotion of personal responsibility among noncustodial parents. This is not
surprising given the changing composition of the CSE caseload, which is reflected
in the decline in cash welfare families and the rise in former cash welfare families.
So far, it seems that the multiple purposes or broadened mission has not had a
negative effect on the effectiveness of the CSE program.

      The data highlighted in this report bring the CSE program into focus. The data
indicate that the program has grown tremendously. During the 25-year period
FY1978-FY2003, CSE collections increased almost seven-fold to $21.2 billion
(adjusting for inflation), program expenditures increased more than five-fold to $5.2
billion (adjusting for inflation), the number of children whose paternity was
established or acknowledged (through the CSE program) increased almost 13-fold
to 1.5 million, the number of child support obligations established increased three-
fold to about 1.2 million, and the CSE caseload increased nearly three-fold to 15.9
million. From this viewpoint the CSE program is seen as very successful.

     The data presented also show that even though the CSE agency is second only
to the Internal Revenue Service (IRS) in terms of its collection/enforcement
                                        CRS-41

apparatus, it has consistently collected only a small fraction of the child support
obligations for which it has responsibility -- 18% in FY2003. Although this
percentage is higher if past-due child support payments (i.e., arrearages, which
generally are hard to collect) are not considered in the equation, it is still relatively
low at 58% -- that is, in FY2003, the CSE program collected only 58% of current
child support payments/obligations. CSE data indicate that the program is collecting
child support for a greater number and higher percentage of families, but the average
monthly child support payment for families that actually receive a payment is still
relatively small, $221 per month in FY2003.

     For the 10 million children in the CSE program in FY2003 who were born
outside of marriage, the establishment of paternity is the first step in obtaining a child
support obligation. FY2003 was the first year in which more fathers were legally
identified through a voluntary paternity acknowledgment process (862,000) than
through the courts or administratively via the CSE agency (663,000). Most states
acknowledge that while they have made significant improvement in establishing
paternity for newborns (primarily through voluntary paternity acknowledgment at
hospitals when the child is born) they are performing poorly with respect to
establishing paternity for older children. In FY2003, the CSE program had
established paternity for only 77% of its caseload.

     So, although the CSE program exhibits improved performance, there is much
more to be achieved. Congress has consistently had high expectations for the CSE
program. There was widespread congressional support for the CSE provisions that
were incorporated into the controversial 1996 welfare reform legislation and there is
agreement that more progress in the program is possible when all states are in full
compliance with the automated systems requirements enacted in 1996 and 1998.

      This report points out that in FY2003, only about 9% of CSE collections ($1.8
billion) were made on behalf of TANF families; about half of that amount actually
went to the families and the rest was divided between the state and federal
governments to reimburse them for TANF benefits to the families. This meant that
in FY2003, 90% of CSE collections ($19.0 billion) went to the families on the CSE
rolls. Thus, the data confirm that the "family first" policy that was begun with the
1996 welfare law (P.L. 104-193) is being effectively implemented. P.L. 104-193
required states to pay a higher fraction of child support collections on arrearages to
families that have left welfare (i.e., former TANF families) by making these
payments to the family first. The order of payment of the child support collection is
of tremendous importance because in many cases past-due child support, i.e.,
arrearages, are never fully paid. The 1996 welfare reform law also gave states the
option to pass through and disregard some, all, or none of the child support collected
on behalf of TANF families (about half of the states currently pass-through and
disregard some child support for TANF families).

     If the currently pending TANF reauthorization legislation (H.R. 240, S. 667)
becomes law, states will have new choices to make about how far to proceed with the
service-delivery, stable income source/support perspective of the program. There
will be more federal money available for states that decide to pass through and
disregard more child support collected on behalf of families who are still receiving
TANF cash benefits and there will be new options for states to distribute more child
                                      CRS-42

support collections to families who are former TANF cash benefit recipients. Thus,
it is possible that in the near future even more child support collected by states on
behalf of TANF families and former TANF families actually would go to families
(rather than be kept by the states and the federal government to reimburse them for
TANF cash benefits that were paid to the family).

     A slightly different examination of the preceding discussion shows how pending
CSE legislation could severely restrict the ability of the CSE program to recover cash
welfare costs. The data in this report indicated that in FY2003, 17% of the CSE
caseload was comprised of TANF families, 47% of the caseload was comprised of
former TANF families, and 36% of the caseload had no TANF connection. This
meant that in effect 64% of the CSE caseload had some TANF connection. Another
viewpoint shows TANF families representing 17% of the caseload and non-TANF
families representing 83% of the CSE caseload. Under current law, the state and
federal governments can potentially receive reimbursements from 64% of the
caseload. If pending welfare reauthorization legislation is passed, the state and
federal governments would be able to receive reimbursements from only 17% of the
CSE caseload.

     Although sometimes overlooked, the CSE program is an integral component of
welfare reform. It is not surprising that child support payments are now widely
recognized as a very significant income source for single-parent families. The data
presented in this report indicate that the CSE program is making great strides in
ensuring that children get the support they are owed from their noncustodial parents.

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