Child Support Report XXV, No. 6, 20030601

Child Support Report

Vol. XXV, No. 6, Jun 2003

Child Support Report is a publication of the Office of Child Support Enforcement, Division of Consumer Services.

CSR is published for information purposes only. No official endorsement of any practice, publication, or individual by the Department of Health and Human Services or the Office of Child Support Enforcement is intended or should be inferred.

Cuyahoga County, Ohio Supports Healthy Marriage

Child Support Cost Avoidance

USPS Address Change Service - Save Time and Money

Disclaimer for Pop-up on Department Web-site

The WorkSMART Project - Improving Performance and Efficiency in Texas

Delivering Child Support to "Un-banked" Parents Colorado's Prepaid Debit Card Pilot Project

HHS/Inspector General - OIG Reports on Child Support Automated Phone Response Systems

Missouri Child Support Receives 2003 Public Excellence Award

Project Save Our Children Success Story

Cuyahoga County, Ohio Supports Healthy Marriage

By: Carri Brown

Researchers have shown that healthy marriages benefit society in many ways. In terms of financial, physical, and emotional health, married persons are typically stronger than unmarried individuals. Some studies have found that children of married parents have fewer behavioral and health problems, attend schools more consistently, obtain better jobs, and are less likely to commit crimes than are the children of unmarried parents. While this information was gathered by group comparisons, and individual experiences sometimes vary, the importance of a healthy marriage to a child's well-being is clear.

In March of 2003, the Ohio Child Support Directors' Association held a conference for child support professionals and child support partners. One of the conference sessions focused on "How a Community Can Support Healthy Marriage." A featured speaker was Dr. Sandra Bender, Executive Director of the Marriage Coalition in Cuyahoga County, Ohio.

Under Dr. Bender's leadership, the Marriage Coalition recently received a federal grant to develop and test a curriculum to teach low-income, unmarried, cohabiting parents of infants, relationship skills and the benefits of marriage. The goals of the project are:

Increasing the quality of and satisfaction in the family relationship, and
Increasing establishment of paternity through marriage, and
Increasing financial security for children through marriage or payments of child support.

At the conference session, Dr. Bender provided an overview of the steps a community can take in order to promote healthy marriage. The steps included:

Offering professional training and conferences for counselors and for couples,
Developing mentoring programs,
Involving clergy,
Networking with non-profit organizations, such as The "Marriage Coalition," to learn about programs that strengthen marriages preventively,
Developing public information and media campaigns about the benefits of marriage, and
Being aware of the current programs and services that are available, enabling government workers to make appropriate referrals and helping to minimize any stigma surrounding marriage and parenting classes.

Dr. Bender encouraged community collaboration, noting that child support enforcement agencies can benefit from being involved in partnerships that help children get what they need. Given the magnitude of the child support program and the fact that it touches all socio-economic groups, child support enforcement agency workers are uniquely situated to make appropriate referrals for those who desire counseling and are considering the issue of marriage.

Carri Brown is Director of the Child Support Enforcement agency in Fairfield County, Ohio.

Child Support Cost Avoidance

A study recently released by OCSE finds that cost avoidance arising from IV-D child support collections amounted to an estimated $2.6 billion in FY 1999, exceeding the $2.4 billion of cost recovery in that year. "Cost avoidance" refers to the financial benefits that accrue to government when child support reduces or eliminates families' dependence on government programs. The financial benefits of cost avoidance are in addition to those from "cost recovery," in which child support collected on behalf of welfare recipients is retained by the government in order to help offset welfare expenditures.

The study, entitled "Child Support Cost Avoidance in 1999", was completed by Laura Wheaton of the Urban Institute. Ms. Wheaton works as a subcontractor under a contract between the Lewin Group and OCSE. Of the five programs examined, Wheaton finds that cost avoidance is highest in the Food Stamp Program, followed by Temporary Assistance for Needy Families (TANF), Medicaid, Social Security Income (SSI), and federal housing assistance. Cost avoidance represents direct budgetary reductions in government outlays for the entitlement programs SSI, Food Stamps, and Medicaid. For the TANF, block grant program, federal housing assistance, and for the discretionary program, cost avoidance frees funds for use in serving additional families and/or providing additional services, and may eventually result in lower federal expenditures.

The study shows that the financial benefits to government from cost avoidance are substantial, even exceeding those from cost recovery. To the extent that the number of families receiving TANF declines from its 1999 level and policymakers enact legislation to pass more child support through to current and former welfare recipients, cost avoidance can be expected to increase in size relative to cost recovery. This would be a positive outcome, given the goals of welfare reform, as it would reflect child support's increasing role in helping families develop and maintain self-sufficiency.

The cost avoidance estimates are produced using the Transfer Income Model, Version 3 (TRIM3). TRIM3 is a comprehensive microsimulation model, developed and maintained by the Urban Institute under a contract with the Office of the Assistant Secretary for Planning and Evaluation of the U.S. Department of Health and Human Services. The model uses data from the March 2000 Current Population Survey (CPS), which provides detailed household and person-level income and demographic data for calendar year 1999. The model captures the reduction in benefits that occurs when child support lowers the benefits that a participating family receives, renders an otherwise eligible family ineligible for assistance, or is sufficient (when combined with other income) to cause an eligible family to decide not to participate. Because child support income is underreported in household surveys such as the CPS, the estimates are adjusted to reflect the actual level of child support distributions reported by OCSE for FY 1999.

The numbers presented in the study present a lower-bound estimate of cost avoidance. In cases where data limitations resulted in a range of estimates, the methodological approach yielding the lowest cost avoidance figure was selected. Furthermore, the estimate does not capture all sources of cost avoidance. Additional cost avoidance arises from means-tested transfer programs not included in the estimates. Notable examples include the Child Care Development Fund (CCDF) and the State Children's Health Insurance Program (SCHIP). Given the limited research concerning the effect of child support enforcement on work, marriage, and childbearing decisions, behavioral effects are not included in the analysis.

For further information, please contact Laura Wheaton at: LWheaton@ui.urban.org

USPS Address Change Service - Save Time and Money

By: Mike Troesch

The Illinois Department of Public Aid, Division of Child Support Enforcement, has implemented the United States Postal Service's automated "Address Change Service" (ACS). This service will forward mail to electronically updated address changes and also remove undeliverable mail addresses from the automated child support database - the Key Information Delivery System (KIDS). Illinois is using ACS to determine whether a non-custodial parent's mailing address should be validated. The analysis of the 2003 first quarter results showed ACS updated 6223 addresses resulting in a total postage due and labor cost savings of $7,705.

ACS provides two options: "Address Service Requested" and "Change Service Requested." Illinois has found that the "Change Service Requested" meets its needs best because it electronically reports changes of address and undeliverable mail. Address changes are automatically validated, eliminating the need to generate and process the "Address Information Request" form, and saving both time and money.

When a tape match provides the address of the non-custodial parent, an address verification form is mailed directly to the address. If ACS does not remove the address within thirty days, the address is validated.

Illinois has found that the address scrubbing software "Finalist" and the USPS ZIP+4 LOOK-UP site on the Internet use the 911 addresses, which may not be known by the resident. A rural address verified by the mail carrier is frequently rejected by address scrubbing software. This problem is not easily resolved without generating mail directly to the address to confirm delivery.

Postage and labor cost savings will increase because the USPS postage due cost for forwarding mail will increase and the USPS Address Change Service will expand services to smaller post offices. For more information, call Mike Troesch, (217) 557-3125.

Mike Troesch is a Public Service Administrator with the Illinois Child Support Enforcement Agency.

Disclaimer for Pop-up on Department Web-site

The Department of Health and Human Services now has a disclaimer referenced from the DHHS Home Page indicating that pop-up ads are not being endorsed. The language is direct and clear. The disclaimer indicates that the user's Web browser may be producing the pop-ups and that the pop-ups may be caused by visiting other sites or by third-party software installed on the user's computer.

http://www.hhs.gov/Disclaimer.html

The WorkSMART Project - Improving Performance and Efficiency in Texas

By: Shawna Patton

In an attempt to improve on its performance measurements, the Texas Attorney General's Child Support Division launched the Texas WorkSMART Project in February 2002. In evaluating methods to improve program performance, the Division realized that existing establishment and enforcement tools would be insufficient to significantly improve program performance, and budgetary limitations prohibited hiring additional staff to increase production.

WorkSMART (Streamlining Methods And Redesigning Tasks) is designed to streamline internal processes that Division employees currently follow. Select field offices are serving as lab or pilot sites to test new case processing theories. While the project is still in its infancy, preliminary statistics from the first pilot site are very encouraging. The project:

Increased established obligations by 39 percent over the previous calendar year.
Significantly reduced the cycle time from application to order entry.
The pilot site became the first office in its region to meet all performance goals.

In addition to re-designing business processes in the four core areas of case initiation, court order establishment, enforcement and financial, the WorkSMART team is also designing comprehensive web-based improvements for customer and Division intake staff.

An online application process is being developed for external customers. Once completed, the on-line application will create a new case in the statewide child support system and alert the appropriate Division intake worker that a new case has been received. This process will make it unnecessary for customers to complete paper applications and eliminate the risk of data entry errors by child support staff.

Web-based case initiation and case assessment screens are also being designed for Division intake staff. The new screens not only will allow easier data entry, but also will interface directly with automated locate resources on a real-time basis. Displaying immediate locate data from multiple sources in one screen will expedite case assessment and shorten the cycle time between intake and the next appropriate establishment or enforcement action. Finally, all case information that must be taken into consideration when assessing the next action to be taken on a case will be displayed on one screen. This will eliminate the need for Division staff to navigate through multiple system screens, in turn reducing case management cycle time and potential case processing errors.

For further information on the WorkSMART project, contact Kerby Spruiell at Kerby.Spruiell@cs.oag.state.tx.us.

Shawna Patton is the Lead Business Analyst for the Worksmart Project.

Delivering Child Support to "Un-banked" Parents Colorado's Prepaid Debit Card Pilot Project

By: Craig R. Goellner

"The check is in the mail..." We've all heard it, and many of us have probably said it in response to the question: "Where's my child support?"

Thousands of checks are printed and mailed each month to deliver collections to our customers. Checks are costly and labor intensive. States have worked hard to increase the number of parents who receive their child support payments electronically, but unfortunately, many parents don't have, or cannot qualify for, bank accounts.

Colorado has put in place a new banking product that holds much promise. In collaboration with the State of Colorado, U.S. Bank has adapted a prepaid debit card for use by parents receiving child support. The card is VISA branded and can be used for purchases and at ATMs to withdraw cash. The VISA network verifies that an adequate balance exists before authorizing the purchase or cash withdrawal.

Child support payments are "loaded" to the card in the same manner as a direct deposit to a bank account. Parents have several options for verifying the balance on the card and receive a paper statement each month. U.S. Bank provides 24/7 bi-lingual customer service to cardholders.

One advantage of this card is that operating costs for the card are covered by the normal fees charged to merchants who use the VISA network. This means low cost to both the parent and the state. The only fee charged to parents is $1.50 per ATM cash withdrawal after the first ATM withdrawal in a month. There is no cost to the state to create or load payments to the card.

During 2002, Colorado conducted a pilot project. Ten thousand inserts promoting the card were randomly inserted with child support checks. Twelve hundred people responded and were issued cards. Preliminary information indicates that cardholders purchase goods and services with 60% of their funds. The remaining 40% goes out as cash through ATMs. The average balance per card is about $100.

VISA USA was so intrigued that it hosted focus group sessions to get first-hand feedback about the card from both cardholders and non-cardholders. In general, parents said they "loved the card." They liked having the "VISA brand" and being able to use it almost anywhere. They liked not waiting in line to cash their check and being able to avoid check-cashing fees. Most parents interviewed thought the $1.50 fee for cash was fair.

The focus groups indicated that parents liked keeping their funds separate, allowing the child support collections to go directly toward support of their children. The monthly statement, providing a record of where the child support was spent, was also cited as a plus.

Like direct deposit to traditional bank accounts, the only pitfall encountered thus far is keeping the custodial parents' addresses current, since they no longer receive checks. To mitigate this problem the Program is providing more education and reminders to parents about this important responsibility. The FSR card does allow the Program on-line access to the cardholder address on file with the bank-information not available to the program for a parent's traditional bank account.

Beginning in February 2003, Colorado began "rolling out" this card statewide to all who receive checks. (Two other states, Washington and Minnesota, are implementing the same product.) A total of 35% of the state's child support is now distributed through direct deposit, and it is hoped that this percentage can be doubled through a voluntary card program within the next year or so. Colorado's ultimate goal is to disburse virtually all child support payments electronically.

This product is still young and there is still much to be learned. But if experience during the pilot is an indicator of future results, this card will become an important tool in the electronic delivery toolbelt. If Colorado succeeds in delivering all child support electronically, the question still may be asked, "Where's my child support?" What won't be heard though, is the response, "The check is in the mail."

Craig R. Goellner is the System Director at the Colorado Division of Child Support Enforcement.

HHS/Inspector General - OIG Reports on Child Support Automated Phone Response Systems

The Health and Human Services Office of the Inspector General recently completed an evaluation of the quality of parent access to child support enforcement information and customer service through state-level automated telephone systems and identified opportunities for improving these systems.

An analysis of model child support enforcement automated telephone systems identified key content and features employed by the most useful systems. The basis for much of the analysis was the development of a list of model system traits. These model system traits, including comprehensive content, ready accessibility, and usability features, combine to create systems that are helpful to both new and experienced callers. It is also critical for systems to provide clear and quick access to the most important topic areas, such as case-specific payment information.

A standardized protocol, focusing on system content, accessibility and usability was used to evaluate the District of Columbia and the forty-nine states, and, that operate at least one state-wide automated telephone system.

Thirteen of these states operate more than one statewide system, for a total of 69 systems nationwide. Fourteen state systems exhibit model traits which set them apart from other systems. Twenty-six other states have systems that meet most, but not all, of the model system traits and were rated highly for overall usefulness. The nine remaining states operate automated systems that are missing more than two model system traits and were also rated poorly for overall usefulness.

Automated systems typically consist of a series of menus from which callers can choose to access information and services - the most common of which is case-specific payment information. Recorded descriptions of child support services offered by automated systems are typically brief, but give useful program overviews on a broad array of topics such as paternity establishment and wage withholding. The more highly-rated systems allow for quick automated access to the most important topic areas.

Initial system access did not appear to be a substantial barrier to use. The automated portion of 57 systems is available to callers all day, every day, and 49 systems provide toll-free nationwide service. Of those systems without toll-free service, many are available free if calling within the state. To broaden access to service further, 19 systems provide recorded messages in both English and Spanish.

Systems typically include navigational tools to ease use. For example, 55 systems allow callers to repeat menus, and 61 allow callers to make a menu selection without listening to the entire list of options. Fourteen of the 55 systems offering repeat functions do not inform callers of the option, and only 49 systems offer general instructions for using their menus. Forty-eight systems also offer callers the option to speak with a live representative in addition to automated information.

Further analysis of systems that were not rated highly or not identified as model systems revealed a number of limits to usefulness. Systems limitations include overly complex menus that bury key topics, cumbersome navigation, and use of a negative tone in communicating with clients. Some systems also appeared less suited for first-time users, lacking clear information on topics of interest to the new client, such as the application process. Other limitations included an over-reliance on live representatives to provide information that could be automated and inclusion of inaccurate or outdated information.

The OIG evaluation concluded by suggesting that the Administration for Children and Families help states enhance their systems by providing technical assistance on: focusing on key topic areas; making systems more user-friendly; targeting first-time callers; automating functions when possible; and updating information frequently.

Missouri Child Support Receives 2003 Public Excellence Award

The Missouri Division of Child Support Enforcement (DCSE) received a 2003 Public Service Excellence Award from the Public Employees Roundtable for its work in reducing undistributed collections.

In June 2001, DCSE determined that a total of $26.2 million in reported undistributed support collections had accumulated. This unacceptable level began accumulating in 2000, after Missouri converted from a local, county-level system to a federally mandated centralized system for collection and disbursement of child support. DCSE recognized the need for immediate intervention and the Holds Team was established to develop a system to reduce these monies.

The Holds Team partnered with the Custodial Parent Locate Project Team, who was given responsibility for locating people eligible to receive the money. Through their combined efforts, by December 2002, DCSE's reported undistributed support total had decreased to $4.9 million - an 81 percent reduction. In addition, this project located nearly 11,000 custodians and released over $20 million to custodial parents and payees.

For more information contact: Lisa Jobe, Jobel@mail.oa.state.mo.us.

Project Save Our Children Success Story

The Eastern District of the United States Attorney's Office in Sacramento, California recently collected $59,303.36, the full amount in arrearages owed in a case.

The U.S. Attorney's Office was preparing to initiate prosecutorial action against the noncustodial parent (NCP). The NCP had not made any of the court-ordered payments for his three children since 2001. It appears that he has been residing in Thailand for an extended amount of time due to his occupation. Because of this, the NCP has been able to avoid paying his child support obligations.

Recently, the noncustodial parent attempted to return to the United States, but was unable to do so. His passport had been revoked. Ultimately, he decided to pay his entire child support arrearages in order to re-enter the United States. The noncustodial parent is known as a successful engineer who travels worldwide for an oil company.