FOR IMMEDIATE RELEASE
Thursday, Dec. 31, 1998
Contact: Michael Kharfen (202) 401-9215

CHILD SUPPORT COLLECTIONS REACH NEW RECORDS

President Clinton Announces New Efforts to Increase Criminal Child Support Enforcement

The Department of Health and Human Services today announced two new records for the child support enforcement program, and President Clinton took further steps to increase criminal enforcement efforts to collect seriously delinquent child support payments.

HHS reported that the federal/state program collected an estimated $14.4 billion for fiscal year 1998, an increase of 7 percent from 1997's $13.4 billion, and an increase of 80 percent since 1992 when $8 billion was collected. In addition, HHS reported, the federal government collected over $1.1 billion in delinquent child support from federal income tax refunds for tax year 1997. This amount was 3 percent higher than the previous year and a 70 percent increase since 1992. Collections were made on behalf of nearly 1.3 million families.

"Each year that we break child support records, more children get the help they need and deserve," said HHS Secretary Donna E. Shalala. "The Clinton administration is determined that every parent in America will understand and honor their obligations to their children. And we will use every means at our disposal to ensure that those parents who refuse to meet their responsibilities, but who have the resources, will provide emotional and financial support to their children."

President Clinton also announced today the establishment of new task forces covering 17 states and the District of Columbia, which will help pursue chronic delinquent parents who owe large sums of child support. The new teams will be based on a model project in Columbus, Ohio, launched earlier this year. The Midwest law enforcement task force, formed by HHS' Office of Child Support Enforcement and its Inspector General's Office, joined with Justice Department prosecutors and investigators, state child support agencies and local law officials to coordinate efforts in a new investigative team, with promising results so far. The task force covered 5 states: Illinois, Indiana, Michigan, Minnesota, and Ohio. Of 358 cases received from states, 306 were investigated resulting in 181 arrests with 170 convictions or settlements and over $3.6 million was ordered to be paid. The new task forces will be established in Baltimore, Dallas, New York, and Sacramento.

"Children denied financial assistance are among our most vulnerable citizens. They are more likely to have health concerns, develop problems with teenage pregnancy, drop out of high school, and engage in violence," said Attorney General Janet Reno. "By prosecuting parents who do not provide support, we will help give these children a better chance in life."

"My office is committed to this new child support law enforcement initiative," said Inspector General June Gibbs Brown. "This office sees the task force approach as an effective way of getting funds to deserving children while at the same time bringing criminals to justice."

In addition, HHS, with the support of the Justice Department, will work to enter into memorandums of understanding with state child support agencies to utilize the full federal criminal enforcement authority by insuring timely referrals of appropriate cases.

"For every child support dollar we collect, children have more hope they can rely on their parents instead of welfare for their well-being," said Olivia A. Golden, HHS assistant secretary for children and families. "We won't rest on our laurels, but spur ourselves to do more for the millions of children who don't receive child support."

Under the federal tax offset program, state child support agencies report names of parents who owe child support payments and the overdue amount to the HHS Administration for Children and Families. These individuals are then notified in writing of the amount that will be withheld to cover their child support debt. That amount is then deducted from their income tax refund. The delinquency may also be reported to credit reporting agencies.

Parents whose children receive Temporary Assistance to Needy Families (TANF) and whose unpaid child support totals $150 or more may have their federal income tax refunds withheld. For tax year 1997, refunds were withheld on behalf of over 869,000 families with children receiving TANF. Parents of children who do not receive TANF must owe at least $500 to have their refunds withheld. Nearly 428,000 non-TANF families benefited from the program this year.

For tax year 1997, the total amount collected was $1.124 billion, up from $661,771,371 in tax year 1992. For tax year 1997, the average collection was $866.56; $873.06 for non-TANF families and $863.36 for TANF families. Collections for tax year 1997 were made after tax returns for that year were filed in 1997 and refunds requested.

"This has been another exciting year for the child support enforcement program. Today's records add to our success finding more than 1.2 million delinquent parents by matching our new national directories of people employed with those who owe child support," said David Gray Ross, commissioner, HHS office of child support enforcement. "I congratulate all those dedicated workers in the nation's child support partnership that every day help put more food on the table and hope in the hearts of children."

Since taking office, the Clinton administration made child support enforcement a high priority, resulting in unprecedented financial collections for children who are owed support. In addition to the collection accomplishments, paternity establishment rose to nearly 1.3 million in 1997, an increase of over 250 percent, from 516,000 in 1992. The new child support enforcement measures included in the new welfare reform law are projected to increase collections by billions over the next 10 years.

Attached is a state by state list of the tax-offset collections and families served.

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Tax Offset Families
Collection

State

Source: HHS Administration for Children & Families