| Statement of Ohio Child Support Enforcement Agency, Columbus, Ohio 43215
The Ohio CSEA Directors’ Association is a member
organization of the 88 County Child Support Enforcement Agencies in Ohio. The County Agencies provide direct services to over 1.3 million children and their
families. We wish to express our very strong support of House Bill 1386, The
Child Support Protection Act of 2007, restoring lost funding for a
universally-acclaimed, cost-effective program that indisputably keeps thousands
of families from slipping into greater poverty. We believe it is crucial for
Congress to repeal the inability to utilize earned incentives as local match.
In 2005, nationally, the program collected $23 billion to
serve 16 million children and families. There is a return of $4.58 on the national
investment. The Congressional Budget Office estimates that the inability to
use earned incentives as local match will result in an $8.3 billion drop in
collections for children. This projection is based upon the premise that states
and counties will fill at least one half of the funding loss created by the
Deficit Reduction Act of 2006. Therefore, the actual loss in collections could
be much greater.
In Ohio, we collected over $2 billion for more than one
million children. Our return on investment was $5.66. It is estimated that
collections for Ohio families will be reduced by over $197 million in the first
five years after the reduction in funding takes place. This will lead to added
expenses in many other social service programs such as day care assistance,
food stamps, housing and utility assistance, TANF and many others. This will
add to the vulnerability of over one half of our cases in Ohio. Currently, 13%
are receiving TANF and 40% have received TANF assistance in the past. Child
support collections and medical support enforcement assist these families in
maintaining self sufficiency, which is the goal of all of us.
In the mid 1990’s Ohio’s program was struggling to improve
performance and to implement an automated system. Currently, our program is
performing at a very high level and has completed implementing our automated
system. We continue to strive to improve even further. Additionally, we are
working very hard to incorporate new initiatives which will result in better
services and outcomes for Ohio’s families and other key partners that assist
with our program. Ohio’s total collection ranks 3rd nationally and
our performance under the incentive allocation has also been 3rd.
Therefore, the recent decision by Congress to disallow the usage of earned
incentives as local match has a critical impact on Ohio’s families.
While our performance has improved tremendously, our current
funding sources have either stagnated or been reduced. As you are aware, Ohio’s economy is struggling as many manufacturing operations are closing or moving
elsewhere. Therefore, placing expectations on the State and/or County Governments to fill the gap is very unrealistic. If funds are available, it would
be wonderful to utilize them to provide new and additional initiatives and
services, rather than replace existing funding sources. Additionally, any
funds used to replace lost federal funding will be taken from other local
critical programs that help children, families and the elderly.
In Ohio, the total potential loss in funding availability if
not filled by local funds within the State is $60 million. This funding has
been utilized 99% at the County level that provides the direct services to our
families. $60 million represents approximately 28% of our total county
expenditures in FFY2005. Ohio collects approximately $600,000 per staff
member. A reduction in funding of 28% will result in a very large loss of
available staff to establish parentage, cash and medical support orders and
enforce these orders, let alone the impact on answering phones and pursuing new
initiatives to continue improving our program.
A study conducted by the Urban Institute found that the
child support program cost $4 billion in 1999, but saved more than $4.9 billion
in direct budgetary reductions in federal and state outlays in the public
assistance programs, including TANF, Medicaid, Food Stamps, SSI and subsidized
housing. In addition, the child support program recouped $2.3 billion in TANF
and Foster Care costs. The Child Support Program in Ohio and Nationally is
receiving very positive recognition due to its cost effectiveness, goal oriented
status and accountability. In fact, the program received a Program
Assessment Rating Tool (PART) rating of “effective” and continues to be one of
the highest rated block or formula grants of all federal programs. With
all of the very positive aspects of this program outlined, it is difficult to
understand why Congress would cut funding and negatively impact children in Ohio
and Nationally.
We request that Congress support HR 1386 and continue
providing opportunities for Ohio to improve our program and outcomes for over
one million families. Thank you in advance for your consideration and
support on this critical issue.
Please feel free to contact Kim Newsom Bridges, our
Executive Director, for more information regarding this testimony and Ohio’s Program. She can be reached at: e-mail kim@ocda.us
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