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Thursday, December 10, 2009

State plans to pull fee from payees

The Federal Deficit Reduction Act of 2005 requires the payment of $25 per qualifying case each year. The state Department of Human Services' Division of Child Support Services paid the fees until Sept. 30.

The funds were required to reduce the federal deficit, said Gary Dart, the director of the Child Support Services division.

Like other agencies, Dart said, DHS has been ordered to cut 5 percent from its operating budget because of the state's revenue shortfall.

"We hope the $25 federal fee is easier on the families we serve than cutting services would have been," Dart said Wednesday.

Dart said the state originally chose to cover the fee as a form of customer service because it wanted to put as much money in the hands of families as possible.

"That was before the bottom dropped out of our own state funding situation," he said.

The agency is one of the last in the country to pass the fee on to customers.

The agency will send out notices to those affected before the fee is charged, Dart said. Many recipients can expect to see the fee on their first payment after programming changes are made in February.

Dart expects some complaints.

"People are having a hard time," he said. "This is not something we are doing because we want to.

"You know, however, on the other hand, they get very good services from

us so far for free. If $25 was all you had to pay to have some help to collect your child support, that is not a bad deal."

The fee is expected to generate about $1.1 million that will be passed on to the federal government.

The fee will be charged for those whom the agency has collected and sent at least $500, the agency said. The fee is based on the federal fiscal year, which is from Oct. 1 to Sept. 30. The agency is reviewing cases going back to October.

Those who receive Temporary Assistance to Needy Families and those who were on Aid to Families with Dependent Children are exempt from the fee.

The Child Support Services division handles more than 190,000 active child support cases.

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