Copyright 2002 eMediaMillWorks, Inc. (f/k/a Federal Document
Clearing House, Inc.) Federal Document Clearing House Congressional Testimony
April 11, 2002 Thursday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 5778 words
COMMITTEE:HOUSE WAYS AND MEANS
SUBCOMMITTEE: HUMAN
RESOURCE
HEADLINE: WELFARE OVERHAUL PROPOSALS
TESTIMONY-BY: ROBIN ARNOLD-WILLIAMS,, EXECUTIVE
DIRECTOR, UTAH DEPARTMENT OF HUMAN SERVICES
AFFILIATION: ON BEHALF OF THE STATE OF UTAH, AND AMERICAN PUBLIC
HUMAN SERVICES ASSOCIATION
BODY: Statement of
Robin Arnold-Williams, Executive
Director, Utah Department of Human Services, on behalf of the State of Utah, and
American Public Human Services Association
Testimony
Before the Subcommittee on Human Resources of the House
Committee on Ways and Means
Hearing on
Welfare Reform Reauthorization Proposals
April
11, 2002
Good afternoon, Mr. Chairman and members of
the Subcommittee. I am Robin Arnold-Williams, Executive Director of the Utah
Department of Human Services. Today I am testifying on behalf of the state of
Utah and on behalf of the American Public Human Services Association (APHSA), a
nonprofit, bipartisan organization representing state and local human service
professionals for more than 70 years. Thank you for the opportunity to testify
today on the reauthorization of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.
The National Welfare
Reform Success
It is important to note that prior to
the enactment of welfare reform, AFDC caseloads were soaring and families
were trapped in a pattern of dependency that few believed could be reversed.
Despite poor family outcomes, for decades rigid federal rules prevented state
administrators from implementing innovative approaches to help families in need.
Under AFDC, states could give families little more than a check to help them
provide for their children. Families faced a financial cliff if they moved from
welfare to work because federal rules discouraged work.
In an attempt to break free from federal restrictions, by the mid-
1990s, 48 states, including my own, were operating their AFDC programs under
federal waiver demonstration programs. Work was the hallmark of early
welfare reform experiments, and by 1996 it became clear that states were
in a better position than the federal government to achieve success in this
area. Under the federal welfare reform law of 1996, states were
challenged to achieve new goals under the Temporary Assistance for Needy
Families Program-like mandatory work participation requirements and lifetime
time limits-with fixed federal funding in a block grant. States accepted the
challenge of meeting these new goals within the funding parameters, because the
new law also afforded them tremendous flexibility to achieve those goals.
States have achieved unprecedented success in implementing
welfare reform, such as increased private-sector employment, decreased
dependency on cash benefits, expanded child care services, escalating child
support collections, and declining poverty. For example, employment rates for
never-married mothers increased by 40 percent over the past five years, reaching
an all- time high in 2000. Sixty-six percent of TANF mothers are working for 30
hours a week in private-sector employment and an additional 12 percent of them
are actively looking for work. Sixty percent of the TANF mothers who left cash
assistance are holding jobs. And to support those families with work, between
1996 and 1999 there was an 80 percent increase in the number of children
receiving a monthly child care subsidy. Paternity establishment has exceeded all
expectations and the number of child support cases with collections has doubled
since 1996.
The flexibility afforded to states spawned
innovation at the local level as well; new partnerships were forged with
businesses, community agencies, tribal governments, and faith- based providers
to support welfare families in their transition from welfare to
work. In 1996, Congress may have envisioned 50 different state TANF programs,
but in fact today there are thousands of partnerships in thousands of
communities sharing in the implementation of the welfare law.
Utah's Success
In 1993, Utah
received a federal waiver to launch its welfare reform program that was
designed to increase income through earnings and child support. Utah's strategy
is a departure from AFDC; the focus is placed on universal engagement in
activities leading to employment, a self-sufficiency plan, and full-family case
closure for nonparticipation. Utah achieved great success in moving families off
of welfare and into work through an individualized case assessment,
diversion assistance, employment and training, on-going case management and
aggressive child support collection efforts. When the federal welfare law
was enacted, Utah implemented a 36-month lifetime time limit with extensions for
those who are medically unable to work; victims of domestic violence; parents
caring for the medical needs of a dependent; or unable to complete education or
training programs due to state inability to deliver needed services. Month to
month extensions are also granted for those employed at least part- time.
Since 1996, Utah's welfare caseload has declined 44
percent to a low of 7,990 in June 2001. Caseloads began increasing slightly in
fall 2001 due to the recent economic downturn. The January 2002 caseload stood
at 8656 - an 8.3 percent increase over the June 2001 level. But the true success
of our program cannot be captured in caseload statistics or work participation
rates. Utah's success is best measured by the number of TANF families who
entered employment. We are particularly proud of the fact that in FY 2000, Utah
received a federal High Performance Bonus for job placement and in FY 2001,
received a second High Performance Bonus award for our ability to retain our
former TANF clients in employment. Utah has a universal engagement strategy for
all clients receiving assistance, but our ultimate goal has been private-sector
employment through training, on-going counseling, and aggressive job search. We
have not focused our resources on developing community work experience programs
or community service.
Pending Reauthorization
Proposals
First, on behalf of APHSA I would like to
express our support for many of the President's welfare reform proposal
outlined in the document, "Working Towards Independence." Specifically, APHSA is
grateful for the President's bold leadership in maintaining the present level of
TANF block grant funding, and for his recognition of the demands on high poverty
and high population growth states by restoring the TANF supplemental grants.
Between 1990 and 2000, Utah was the fourth fastest growing state in the country
and we appreciate the recognition of the impact this growth has on service
needs. In addition, we enthusiastically support other financing measures
included in the president's proposal, such as;
continuing and improving the TANF contingency fund;
removing the restriction on unobligated TANF funds;
excluding child care and transportation from the definition of
assistance;
creating state "rainy day funds" using
unobligated TANF funds;
continuing the transfer of 30
percent of TANF funds to the Child Care Development Fund; and restoring the full
transfer authority into the Social Services Block Grant. APHSA urges the
immediate restoration of transfer authority of up to 10 percent of TANF funds
and a funding level of $2.8 billion annually, as provided in the original 1996
welfare law.
These provisions will dramatically
increase state and local flexibility in the administration of the TANF program
and we urge this subcommittee and Congress to include these provisions in TANF
reauthorization legislation.
We understand that there
were pressures to include earmarks in the TANF block grant for various
initiatives and we are grateful to the President for proposing a block grant
free from any so- called "set-asides" that would restrict state and local
flexibility.
We strongly support the President's
proposal to eliminate the Two- Parent Family Work Participation rate. We
recognize that Congress may act to eliminate the caseload reduction credit and
therefore, we support the President's proposal to phase-out the credit over
time. We support the President's proposal to continue state authority to exempt
up to 20 percent of their TANF caseload from the lifetime time limit on federal
cash assistance payments.
We support the President's
proposal to provide technical assistance to the tribes who currently operate
Tribal TANF programs as well as assistance to those tribes interested in
administering their own programs.
We support the
President's focus on child well-being and the reauthorization of the Abstinence
Education Program. We believe the proposal to fund research, demonstration and
technical assistance programs related to marriage and family formation is
superior to a federal mandate on states to spend a certain percentage of the
TANF block grant on such efforts. In my state of Utah, we have engaged
community, business and religious leaders for several years in an effort to
strengthen marriage and prevent family disintegration. These efforts, in my
view, are most effective when government is one of many partners in a
community-wide effort to invest in and support families.
With respect to child support enforcement, we support proposals, such
as those put forth by the President, that would give states the option to simply
their child support distribution systems and passthrough more support to
families, with the federal government sharing in these costs.
The President's proposal also included recommendations to improve the
federal Food Stamp Program. We support efforts to simplify program
administration; allow families to own a vehicle; restore benefits to
non-citizens and eliminate the cost-neutrality criterion on state Electronic
Benefit Transfer Programs.
We are supportive of the
President's objective to provide states with greater flexibility to manage
federal programs together to better serve families. The Program Integration
waivers have the potential to move performance goals from process measures to
outcome measures. We are anxious to learn more details about eligible programs
and the waiver administration, particularly the rules pertaining to cost
neutrality--a criterion that in previous years, proved to be a serious obstacle
to waiver implementation.
Finally, with respect to the
work proposals contained in the President's reauthorization plan, we support
maintaining work as the primary focus of the TANF program. Work is the
centerpiece of state welfare reform efforts across this country as it was
the hallmark of the early welfare reform demonstrations of the early
1990s. We support the objective to set new effort to improve state performance
with respect to work. And we look forward to working with the Administration and
Congress to setnew outcomes for the TANF program that would enhance, rather than
refocus state efforts in this area.
Principles of
Reauthorization
As Congress considers reauthorization
of welfare reform, continued state success is contingent upon four
factors: (1) maintaining and enhancing the flexibility of the TANF block grant;
(2) maintaining an adequate level of federal support for the block grant and
related programs; (3) maintaining work as a key focus of welfare reform
and, (4) simplifying and aligning federal program rules and goals.
Maintaining and Enhancing Flexibility. States are afforded
great flexibility to design TANF programs that meet their individual goals and
respect the diversity of each state and its citizenry. Over the past five years,
we have learned that the TANF caseload is both dynamic and diverse.
Private-sector employment should continue to be the goal of the TANF program
participants. States also need continued flexibility to design programs and
innovative approaches to meet the changing needs of the families served by their
programs. In addition to work, TANF programs provide support to fragile families
struggling to support their children; promote family well-being; provide child
care services and early childhood development programs; improve parenting skills
and support and preserve families; extend employment and training opportunities
to noncustodial parents; support two-parent families; prevent teen pregnancy;
and provide services to youths to prevent intergenerational dependence on
government assistance. All of these TANF investments are critical to ensure the
continued success of welfare reform.
There is
broad agreement that welfare reform has been a success, and we urge
Congress to continue to support that success. States have committed TANF
resources in support of their state priorities and in compliance with federal
goals and objectives. And thousands of community partnerships are involved in
the implementation of those priorities. APHSA urges Congress to reject any
changes in the TANF statute that would require states to abandon their goals and
redirect their limited TANF resources to meet process measures, penalties, or
purposes that are inconsistent with states' successful welfare reform
strategies. We urge Congress to set broad goals for the reauthorization of
welfare reform and afford states with the flexibility to devise their own
strategies to meet those outcomes.
We ask the
Subcommittee to minimize the burden placed on states to report unnecessary and
costly data reporting requirements. The information technology changes and
increased administrative costs associated with such requirement could be better
expended on provided services to families in need.
Maintaining Adequate TANF and Related Program Funding. After an initial
start-up transition period from the check-writing focus of AFDC to the
work-focused TANF program, the majority of states are allocating their full TANF
block grant this year and spending prior year dollars as well. According to the
Congressional Budget Office, current TANF expenditures exceed the authorized
level of funding by $2 billion. APHSA supports maintaining the federal
commitment to the TANF block grant and allowing for annual inflationary
increases in the program in order to sustain services to low-income working
families.
Maintaining the Work Focus. Long before
Congress mandated work from welfare clients, states were implementing
successful waiver demonstration projects with work as the focus. States have
demonstrated that they could devise effective TANF strategies that moved more
families from welfare to work than ever before in our nation's history.
This record of success should offer Congress adequate evidence that states are
focused on employment. And for those who are left on the cash assistance
caseload, according to the most recent federal data, 77 percent of the families
that count toward the participation rates are either in unsubsidized employment
or looking for it. Only 11 percent are engaged in workfare activities. The data
provide compelling evidence that states have placed their emphasis on "real"
work.
Recent Senate and administration proposals have
placed a renewed focus on TANF work participation rates, hours, and definitions.
We urge this subcommittee to look at the welfare to work effort more
broadly. TANF work participation rates only represent a very small part of the
welfare-to-work story. The work participation rates only measure the
number of families receiving cash assistance who are engaged in at least 30
hours of work activities. And in a time-limited welfare system, the
families represented in the work rates are an ever-shrinking number.
The work participation rates do not include the thousands
of families who receive TANF- funded child care or transportation that allows
them to keep their private-sector jobs. The current rates do not include the
TANF mother who works 29 hours or fewer in a private-sector job. Mothers, who
hold private jobs and received short-term TANF assistance, such as car repair or
assistance in paying their rent or utilities, are not included in the work
rates. Nor are the hundreds of thousands of mothers who no longer receive cash
assistance because they are earning a paycheck in the private sector.
Work rates may have been an appropriate measure when
welfare reform was enacted in 1996, but today they are an outmoded and
incomplete measure of state welfare-to-work efforts. APHSA recommends
that states be afforded the option to choose between the process measures of
participation rates and the high performance bonus outcome measures of job
placement, retention, and earnings progression. At the very least,
reauthorization legislation should place as much emphasis on the placement and
retention of TANF clients in unsubsidized employment as it places on the work
activity of those receiving cash.
The following
proposed changes may require states to restructure their TANF
strategies-eliminating the caseload reduction credit, increasing work
participation rates, increasing required work hours to 40 per week, restricting
work activities for 24 of the 40 hours, and eliminating federal waivers. States
are in the process of evaluating the full effect of these potential changes on
their programs. We urge the members of this subcommittee to reach out to your
states to determine the full impact of such policy changes.
With respect to the caseload reduction credit, we recognize that
Congress may not continue to allow states to be credited for a caseload decline
based on 1995 data. However, if it is eliminated we recommend phasing out the
caseload credit and replacing it with an employment credit. The new credit would
provide an incentive for states to place and retain TANF clients in jobs with
earnings; additional credit should be earned for providing short-term assistance
to clients with earnings as well as for clients in part-time employment with
earnings. As the caseload reduction credit is phased out over time, the improved
employment credit would be phased in.
With respect to
work participation rates, APHSA supports the president's proposal to include
two-parent TANF families in the all families rate. And we also believe that TANF
mothers, who have multiple barriers to overcome such as mental health,
substance abuse, or learning disabilities, may need additional time to
enter the workforce. States should be afforded additional flexibility in
defining work activities so that they can place these clients in meaningful
activities that increase the likelihood of long-term success in the workforce.
In this respect, APHSA also supports continuing state welfare waivers.
With respect to increasing required hours of work to 40,
the new requirement would have unintended effects and increased costs. First, it
is important to note that in 27 states, TANF clients no longer qualify for cash
benefits when they work 40 hours per week at the minimum wage. In 16 states,
clients lose eligibility after 24 hours of work at $7 per hour. In short,
clients will exit welfare before they can be counted toward the
participation rate. For example, if a TANF client loses eligibility when she
works 28 hours at the minimum wage, the state would have to adjust eligibility
rules in order to keep the family on cash long enough to count them. In a
time-limited TANF program, this would be unfair to the client and contrary to
our mission of moving families off assistance.
According to federal data, in FY 2000, TANF clients worked an average
of 29 hours per week in all federal work categories. Increasing the number of
required hours and work rates will increase the costs of child care and may
require one or more additional child care arrangements. It may be necessary to
either significantly increase TANF block grant funding or child care funding to
support the new work requirements.
In states
experiencing an economic slowdown and in rural or tribal areas, significant
challenges may arise in implementing the proposed 24-hour requirement. Utah, for
example, does not have the community worksite infrastructure to place families
in the strict work activities as proposed. We are concerned that our employment
counselors, who work to negotiate individualized employment plans, would shift
to work site development and monitoring.
When
considering changes to the work rates, we urge you to consider the potential
impact on the millions of families served with TANF funds. States may be
required to redirect program resources or face substantial financial penalties.
States lose 5 percent of their block grant and must appropriate the equivalent
amount of state funds to their program and the state maintenance- of-effort
(MOE) requirement is increased by 5 percent. While there is an existing
corrective compliance plan that might mitigate the financial penalty, the
broader public message will be that the welfare reform program is a
failure.
In the long run, neither rates, hours, nor
activities matter for the families we serve. Rather, the ultimate goal of
welfare reform is the transition from cash dependency to job retention
and earnings progression-generating sufficient income to support a family free
from welfare for a lifetime.
Over the past year,
APHSA has worked with the National Council of American Indians to develop joint
recommendations for Tribal TANF reauthorization. States and tribal governments
share the goal of expanding employment and economic opportunities for tribal
TANF families. We have endorsed direct and enhanced funding for tribes; new
funding for technical assistance, infrastructure improvement, research, and
program evaluation; access to contingency funds and performance bonuses;
economic development assistance; and a strengthened partnership between federal,
state, and tribal governments. We urge this subcommittee to consider these
proposals.
Simplifying and Aligning Federal Program
Rules and Goals. Conflicting federal program rules, restrictions, and
requirements impede state administrators' ability to deliver critical services
to families in need. For example, TANF program goals and objectives conflict
with Food Stamp Program rules. Rigid eligibility requirements prescribed in the
Workforce Investment Act and the Welfare to Work Program do not afford
states with the opportunity to structure a continuum of employment and training
services. As states move TANF clients from cash assistance, the resources to
operate their child support program decrease significantly. Current federal
funding for child welfare services creates perverse incentives to remove
children from their homes rather than keep families together. Last year, APHSA
published Crossroads: New Directions in Social Policy, setting forth an agenda
for the reform of a wide range of federal human service programs. We commend
this document to your attention and urge consideration of our
recommendations.
Child Care
Since the passage of the Personal Responsibility and Work Opportunity
Reconciliation Act (PRWORA) in 1996, we have seen a dramatic increase in the
number of families and children served as evidenced by the unprecedented growth
in child care expenditures. Between 1996 and 1999, there was an 80% increase in
the number of children receiving a monthly child care subsidy.
States have programmed every dollar available for child care. The child
care story is a CCDF and TANF story. Since Fiscal Year (FY) 1997, we have
doubled spending on child care. In FY 2000, states expended over $9 billion in
combined federal and state dollars on child care. This includes $7 billion from
the Child Care and Development Fund (CCDF) and TANF dollars transferred, plus $2
billion in direct TANF spending. States have increased TANF spending on child
care from $189 million in FY 1997 to $4.3 billion in FY 2000. TANF funds spent
on child care exceeded the entire federal portion of the CCDF allocation in FY
2000.
Under CCDF, states have met or exceeded the 100%
maintenance-of- effort requirement each year. States have drawn down all
matching funds and have obligated all mandatory and discretionary funds.
The simplicity introduced with the Child Care and
Development Block Grant has greatly contributed to state child care
successes.
APHSA supports the need for flexibility in
the CCDF that permits states to design child care plans that balance the
expansion of services and new quality of care initiatives. To that end, state
administrators oppose creating new mandatory set-asides of funding and
increasing current ones. CCDBG was created in part to simplify what was a myriad
of child care programs with little flexibility. We have demonstrated that we can
achieve much more under the current program. Let us not move backwards by adding
more strings to the program and impeding states' abilities to meet parental
needs in a changing employment environment.
APHSA also
advocates flexibility in programming by transferring funds to CCDF. We support
permitting states to transfer up to 10% of their TANF block grant to the Social
Services Block Grant (SSBG), a key source of funding for child care. APHSA also
backs the preservation of state authority to transfer up to 30% of the TANF
block grant into CCDF and the ability to spend TANF funds directly on child
care.
APHSA believes that the funding currently in the
system should remain in the system. States are concerned that increased TANF
caseloads during the current economic recession may reduce the amount of TANF
funds available for child care. In addition, if Congress mandates new TANF work
requirements, then federal child care funding must increase as well. We need $4
billion in addition to the CCDF funding to maintain our current investment. If
Congress wants states to increase quality and increase access, then additional
funds will also be needed.
APHSA supports maintaining
the state's option to draw down these funds by a matching fund formula to make
unmatched dollars available to other states at the close of a fiscal year. APHSA
calls for a statutory change to allow donated funds from private sources to
count toward maintenance of effort when funds benefit the donors' facility or
use.
States continue to have strong concerns about
using 85% of the state median income as an eligibility standard. Federal funding
has not been provided in order to furnish child care services to this population
deemed federally eligible. In light of the fixed funding available for child
care, we believe strongly that program eligibility be determined at state and
local levels.
Demand for different types of child care
is growing as well. We need more funding to help increase access and quality
within nontraditional hours for child care. We also need additional resources to
create greater access and quality for children with special needs who require
child care. Expanded access and quality require financial investment. In a block
grant, reaching a balance between these objectives must be accomplished at the
state and local levels. We oppose increasing or expanding quality set-asides
before we have agreed that we have sufficient resources to expand access to all
families in need of such support.
Finally, with respect
to child care data reporting requirements, the system must be simplified. The
aggregate data collection report asks elements repetitive of other required
reports and should be eliminated. The case-level data collection report needs to
be amended to contain elements that actually inform programming needs. States
should also be allowed the option of requiring a social security number for
receipt of benefits under CCDF to increase the ability to offer
cross-programming opportunities.
Child
Welfare
APHSA believes that now is the ideal
time to address child welfare issues related to the TANF program. To meet
current challenges, additional requirements posed by the Adoption and Safe
Families Act, increased expectations of state performance, and to sustain and
expand the significant progress that has been made in assisting children who
have been abused or neglected and their families, states will require greater
flexibility in using current funding or increased resources in the form of new
federal investments, and an increased capacity to get the job done. APHSA
supports increased flexibility within the entitlement structure, with additional
federal investments, while maintaining state accountability and the statutory
protections for children. Our recommendations for child welfare reform at
this time consists of three specific points, 1) Fixing the AFDC "Look Back, " 2)
Reauthorization of the Title IV-E Child Welfare Waiver Demonstration
Program and 3) Increased flexibility in Title IV-E funding.
APHSA believes that income eligibility as a criterion to determine who
among the children placed in foster care or subsidized adoption is eligible for
federally reimbursed foster care and adoption assistance under Title IV-E should
be eliminated. Under the welfare reform law, states are required to "look
back" to old AFDC rules in effect on July 16, 1996, to determine Title IV-E
eligibility. Not only is this administratively burdensome, but as the law does
not allow the income standards in effect on July 16, 1996 to grow with
inflation, eligibility for federal reimbursement will continue to decrease over
time, resulting in a loss of federal funding to states. It is only reasonable
that federal funds be provided for the care of all children in foster care.
In order to maintain needed flexibility in child
welfare, the current Title IV-E Child Welfare Demonstration Waiver
program, which expires this fiscal year, must be expanded and made more
flexible. The National Council of State Human Service Administrators (NCSHSA)
recently reaffirmed earlier policy stating that substantial modifications should
be made to the Title IV-E waiver process to allow more flexibility, a broader
scope, and to foster system change in child welfare. Specifically, the
program should be reauthorized for five years with additional state flexibility
including expanding the limited number of waivers and the number of states that
may conduct waivers on the same topic.
APHSA believes
that states should be allowed to use Title IV-E funds for services other than
foster care maintenance payments, such as front end, reunification, or
post-adoption services for children who come to the attention of the child
welfare system. Title IV- E should be amended to give states the option
to redirect federal revenue for Title IV-E maintenance payments into their Title
IV-B programs, thereby providing states with the flexibility to reinvest federal
revenue into other child welfare services whenever foster care is
reduced, while maintaining accountability for outcomes. If states had up-front
funding to reinvest foster care foster care expenditures in the kinds of
services that reduce the need for foster care, better outcomes could be achieved
while allowing more efficient use of current resources.
Child Support
States have shown remarkable
achievement in implementing the child support provisions contained in the
welfare reform act. The percentage of child support cases with orders
that had collections increased from 34 percent in 1995 to 68 percent in 2000.
Total paternities established and acknowledged increased from 931,000 in 1995 to
1.556 million in 2000.
We believe that child support
should be included in TANF reauthorization discussions in light of the key role
that child support plays in promoting self-sufficiency. The current system for
distributing child support arrears collected on behalf of families that have
left welfare is complicated and confusing. The assignment and
distribution of arrears depends on what year the arrears accrued, whether the
family was on welfare, and by what method the arrears were collected. If
a family never received TANF, AFDC, or Medicaid, all of the child support
collected by the state child support agency, including arrearages, goes to the
family. While a family is receiving TANF benefits, the state can keep any child
support it collects, regardless of how it is collected, to reimburse itself for
the family's benefits.
For families that formerly
received public assistance, the rules are more complex. For former recipients of
public assistance, welfare reform legislation created a more "family
friendly" distribution policy. In general, once a family leaves TANF, if the
state collects child support for the family, the state must give the family any
current child support as well as arrearages that have built up after the family
left TANF and any arrearages that built up before the family received TANF
before it reimburses itself for assistance costs.
States have spent many resources programming computers to keep track of
the many "buckets" of support, determining whether an arrearage accrued before
assistance, during assistance, or after assistance; whether it is permanently
assigned, never assigned, temporarily assigned, conditionally assigned,
unassigned during assistance, or unassigned before assistance; and whether it
was collected by the tax refund intercept program, by levy of a bank account, or
by other methods. Many state personnel believe that the complexity of the system
contributes to more errors and creates more difficulty in explaining payments to
clients.
The complicated distribution system is a
burden on state child support programs. Staff has spent considerable resources
programming computer systems to properly distribute child support. Maintaining
these systems requires continued staff resources. In addition, families find the
current distribution system hard to understand. The fact that an arrearage
payment goes to the state rather than the family just because it was collected
through the tax intercept program does not make intuitive sense, and states must
devote staff to answer questions related to the current distribution rules. Such
complexity adds to the sense of arbitrariness of the program and reduces public
support for it.
We support proposals, such as those put
forth by the President, that would give states the option to simply their child
support distribution systems and passthrough more support to families, with the
federal government sharing in these costs.
Concluding
Comments
In order to achieve program outcomes, inspire
state innovation, and leverage scarce program resources, funding streams should
be flexible, program eligibility and federal funding restrictions should be
simplified and the values underpinning the programs should be aligned as well.
In the end, the success of human service programs will be measured by the health
and well-being of America's children, families, and adult; by their reduced
dependence on government assistance; and by self-sufficiency for generations to
come.
Thank you for the opportunity to testify. I would
be happy to respond to any questions you may have.