Stimulus rebates help nab child support offenders

BY Susan Gibbs, Record Reporter
Published: July 24, 2008

Norma Dean, pastor of the Westover United Methodist Church and senior eligibility worker at Greene’s Department of Social Services, says she knows what its like for single parents struggling to raise children.
For Deanne, raising three daughters without child support meant, “Having $10 a month for groceries for all four of us; hanging a whole room of wallpaper for $20 to earn that grocery money; not being able to afford any of the extra things; and, wanting to give your children Christmas presents and knowing there wouldn’t be any.“
Now, Deane’s daughters are all grown, but there are plenty of Greene County children growing up in similar situations.
Those children are owed more than $4.1 million in overdue child support, says Nick Young, Director of the Virginia Department of Social Services’ (DSS’) Division of Child Support Enforcement (DCSE).
But some of that money could be paid.
According to a DSS news release issued July 17, DCSE has collected $13 million in past due child support payments through intercepted Economic Stimulus Act of 2008 (ESA) rebates.
“We do not have a breakdown of ESA money intercepted by county,“ Young says. But “some of the $13 million collection will flow to Greene County to satisfy some of the $4.1 million in … delinquent child support that is owed.“
The ESA, written into law in February, was meant to stimulate spending by businesses and consumers throughout the year. The tax rebates were intended to boost consumer spending and that targeted tax incentives would boost business spending.
As a matter of course, the United States Treasury intercepts returns - and now ESA rebates—for a variety of reasons including overdue student loans, back taxes and child support programs Nationwide, it’s the latter that benefit most, receiving half of all intercepted money.
The July 17 release stated that 23,000 Virginians have had all or part of their rebate checks diverted to help offset child support arrearages. What’s more, DCSE estimates that once all of the tax returns are processed, $30 million will be redirected to Virginia families through ESA tax rebates alone.
“Too many of our delinquent parents do not file tax returns or they go into hiding; but for the ones that do file, this is one method we can use to help children and families,“ Young was quoted as saying in the July 17 news release.
According to DCSE’s website, 157,321 non-custodial parents were located last year, 8,202 paternities were established, and more than $608.5 million - an increase of 3 percent over the previous year - was collected.
“Our purpose … is to ensure … compliance with orders to pay child support. The interception of federal tax refunds and the economic stimulus payments are just some of the tools we use,“ says Ron Harris, DCSE assistant director.
One of the tools DCSE uses is a “Most Wanted List,“ posted on its website. People currently posted there owe from $14,930 owed for one child, to $167,465 for one child, and that’s just two cases. The same website states that there are now 363,000 child support cases in Virginia. Collectively, 484,000 of the Commonwealth’s children are owed more than $2.4 billion.
In Greene, says Young, “There is $104,882 in current support due every month” in addition to the $4.1 million in delinquencies.
The amount of child support owed by individuals is determined by the Commonwealth.
A minimum of $65 per month is presumed for a parent with a gross monthly income of up to $599. At a gross monthly income of $1,000 per month, payment for one child jumps to $196 for one child; at $2,000 per month it jumps to $338; at $3,000 to $445; at $4,000 to $553; at $5,000 to $666, at $6,000 to $763, and so on.
Exemptions are: Parents unable to pay child support because they lack sufficient assets with which to do so and who, in addition, are institutionalized in a psychiatric facility; are imprisoned for life with no chance of parole; are medically verified to be totally and permanently disabled with no evidence of potential for paying child support, including recipients of Supplemental Security Income; or are otherwise involuntarily unable to produce income.
In other words, every parent able to pay support is required to do so.
“When a parent that is due child support is not receiving that support the effect is at least two-fold,“ says Greene’s Director of Social Services, James Howard. “First, and foremost, the quality of life for the parent and child is diminished in terms of the resources available for the child and family.“
And second, the cost is borne at both the state and local levels: It’s the taxpayers who pick up the tab for some parents who don’t pay child support - in more ways than one. When the custodial parent has to seek benefits through DSS, “the cost is borne at both the state and local levels,“ Howard explains.
At the state level, if an individual is determined eligible for any or all benefits because child support is not received the result is additional dollars - from taxpayers—paid in benefits. Locally, (DSS) is responsible for determining eligibility for benefit programs like food stamps, Temporary Assistance to Needy Families, and Medicaid.
“Obviously with increased determinations (workload) there is an increased administrative burden which is in part funded by the locality,“ Howard notes.