California has major problems
Assessment of California's Substantial Accrual of Child Support Debt Available
The Center on Law and Social Policy (CLASP) has released a report based on data collected by the Urban Institute that had been previously commissioned by the state to investigate a large amount of arrearage debt owed by noncustodial parents in California. The report, "Pursuing Justice: A Strategic Approach to Child Support Arrears in California," makes the following findings and recommendations:
$14.4 billion is currently owed in arrears. While eighty-five percent of all obligors owe arrears, $8.1 billion of this debt is owed by very low- or no income obligors (making less than $5000 a year).
Seventy percent of orders are set by default in California (substantially higher than many other states). In the absence of knowledge of obligor income, orders in the past were automatically calculated as the total of the family's monthly welfare grant. Very low-income parents (less than $5000 monthly income) thus now owe median support orders of $280 (or twice net monthly income at $5000 a year pay) and parents with no recent income have a median monthly debt of $277. Though the state now has guidelines for low-income obligors (defined as making less than $12,000 a year), the report recommends that these guidelines be used more often by courts in making award decisions. Beyond modifying current orders to reflect current ability to pay, the authors recommend that the state forgive or modify arrears accrued based on the assumption of higher income.
Seventy percent of current debt is owed to the state (PRWORA requires parents to assign to the state any child support paid on their behalf to repay for assistance received, with state option to pass through a portion or all of the amount collected to families). The state therefore has the option to partially or fully forgive this debt.
While half of states do not charge interest on arrears debt, California charges a rate of ten percent. In addition, payments are applied to interest before the base amount owed. The authors recommend that the state eliminate or reduce interest and apply payments to the principal owed first.
In California, arrears may be charged retroactively for up to one year preceding the date on which the order is set. The authors suggest limiting this amount for low-income parents or allowing caseworker discretion.
Modifications were generally found to be inflexible and difficult to obtain, as they can be made only every three years and then only in the case of a monthly order change exceeding $50 or 30% of the order amount.
Finally, five percent of obligors were currently incarcerated. The report recommends that the Departments of Corrections and Child Support work together to immediately modify order amounts upon entrance into prison.
The full report can be accessed at www.clasp.org.
Assessment of California's Substantial Accrual of Child Support Debt Available
The Center on Law and Social Policy (CLASP) has released a report based on data collected by the Urban Institute that had been previously commissioned by the state to investigate a large amount of arrearage debt owed by noncustodial parents in California. The report, "Pursuing Justice: A Strategic Approach to Child Support Arrears in California," makes the following findings and recommendations:
$14.4 billion is currently owed in arrears. While eighty-five percent of all obligors owe arrears, $8.1 billion of this debt is owed by very low- or no income obligors (making less than $5000 a year).
Seventy percent of orders are set by default in California (substantially higher than many other states). In the absence of knowledge of obligor income, orders in the past were automatically calculated as the total of the family's monthly welfare grant. Very low-income parents (less than $5000 monthly income) thus now owe median support orders of $280 (or twice net monthly income at $5000 a year pay) and parents with no recent income have a median monthly debt of $277. Though the state now has guidelines for low-income obligors (defined as making less than $12,000 a year), the report recommends that these guidelines be used more often by courts in making award decisions. Beyond modifying current orders to reflect current ability to pay, the authors recommend that the state forgive or modify arrears accrued based on the assumption of higher income.
Seventy percent of current debt is owed to the state (PRWORA requires parents to assign to the state any child support paid on their behalf to repay for assistance received, with state option to pass through a portion or all of the amount collected to families). The state therefore has the option to partially or fully forgive this debt.
While half of states do not charge interest on arrears debt, California charges a rate of ten percent. In addition, payments are applied to interest before the base amount owed. The authors recommend that the state eliminate or reduce interest and apply payments to the principal owed first.
In California, arrears may be charged retroactively for up to one year preceding the date on which the order is set. The authors suggest limiting this amount for low-income parents or allowing caseworker discretion.
Modifications were generally found to be inflexible and difficult to obtain, as they can be made only every three years and then only in the case of a monthly order change exceeding $50 or 30% of the order amount.
Finally, five percent of obligors were currently incarcerated. The report recommends that the Departments of Corrections and Child Support work together to immediately modify order amounts upon entrance into prison.
The full report can be accessed at www.clasp.org.