BILL ANALYSIS
AB 667
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Date of Hearing: April 27, 2005
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
AB 667 (Jones) - As Amended: April 13, 2005
Policy Committee: Judiciary
Vote:9-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill establishes statewide performance measures for the
Department of Child Support Services (DCSS) and local child
support agencies (LCSAs). Specifically, this bill:
1)Establishes specific numerical targets for:
a) Paternity order establishment.
b) Child support order establishment.
c) Current support and arrears collections.
d) Cost-effectiveness.
e) Medical order establishment.
f) Complaints (prior year plus 2 percent).
g) Collections on all cases (prior year plus 2 or 5
percent).
2)Requires DCSS, in consultation with LCSAs, to develop annual
performance targets for each LCSA that align with statewide
performance goals.
3)Requires that DCSS post performance related data on the
internet and ensure that LCSAs also display county-specific
data on the internet.
4)Requires DCSS to change compliance processes from a
three-phase to a two-phase plan.
5)Requires the second phase of the compliance process to include
either the replacement of the LCSA director or assessment of a
financial penalty by DCSS against the LCSA equal to the
federal incentive lost as a result of the LCSAs sub par
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performance. If performance does not improve in subsequent
years, DCSS is authorized to impose the financial penalty each
year until the LCSA reaches specified targets. DCSS is
authorized to hold such penalties in abeyance under certain
conditions.
FISCAL EFFECT
1)State reimbursable costs in the range of $200,000 for staff to
comply with increased data analysis and reporting
requirements. Some data items and workload in this bill are
either required or authorized under current law. However, the
specificity and mandates of this bill generate increased
workload.
2)Moderate staffing and administrative costs, potentially in
excess of $100,000, to the extent this bill increases workload
related to performance improvement plans (PIPs). Although PIPs
are authorized under current law, this bill requires that PIPs
include onsite investigation and monitoring. This bill
authorizes appointment of onsite training and education staff.
In addition, by codifying numerical targets, this bill
increases the likelihood that counties will need to enter into
a PIP. Under current law, only two counties have required a
PIP and additional monitoring. This bill will likely generate
far more activity in this area and an increased level of
service for local administrative units to improve performance.
COMMENTS
1)Rationale . This bill, sponsored by the National Center for
Youth Law, is designed to increase child support collections
and to maximize federal incentive funding by increasing the
specificity and rigor of performance standards and increasing
the authority of DCSS to require improved local performance.
2)Background . DCSS was established in 2000 as the single
statewide agency responsible for the administration and
management of California's child support enforcement program.
The primary purpose of California's child support program is
to collect support payments from absent parents for custodial
parents and their children. Local child support offices
provide services, such as locating absent parents,
establishing paternity, obtaining, enforcing, and modifying
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child support orders, and collecting and distributing
payments.
In 2004-05 DCSS will collect an estimated $2.4 billion. Of these
funds, $700 million are collected on behalf of current or
former welfare recipients. These collections result in $300
million recouped by the GF to offset benefits costs. DCSS
programs are funded with both federal and state funds,
including federal performance incentives. Under current law,
counties are reviewed annually by DCSS.
3)Federal Incentives . The Federal Child Support Performance and
Incentive Act of 1998 (Public Law 105-200) shifted the focus
of the child support program to measurable outcomes of program
performance. The federal performance-based incentive funding
system uses specific performance indicators such as the
percent of cases with paternity or support orders established
to determine how much states receive in federal funding.
Incentive funding is capped nationally at $450 million each
year; how much California receives is based on performance,
and performance relative to other states. In 2004-05,
California received $47 million in incentive funding.
Improvement on these measures leads to increased federal
funding and a decrease in the amount of GF support required.
Because state child support dollars are matched by the federal
government at a two-to-one rate, this $47 million generates
another $94 million in federal funding.
4)California's Child Support Record is Mixed . In recent years,
California has increased child support collections
significantly. However, spending has also increased. It
exceeds federal standards on paternities established and child
support orders established. However it fails to meet measures
for current support collections, arrears collections and
cost-effectiveness. On this last measure, California collects
$2.31 for every dollar spent, while the national average is
$4.33 for every dollar spent-almost 50 percent below the
national average.
5)Child Support Penalties . The federal government usually pays
two-thirds of the state's total child support administrative
expenditures. However, pursuant to the Child Support
Performance and Incentive Act of 1998, California has been
subject to federal automation penalties, which are levied, in
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the form of a reduced federal share in these administrative
costs. Chapter 479, Statutes of 1999 (AB 150, Aroner),
provides that the distribution of penalties between the state
and counties be determined through the annual budget process.
Through the current year, California has incurred more than
$750 million in automation penalties, which creates a drain on
fiscal resources in the program.
6)Related Legislation . AB 738 (Jackson), Chapter 308, Statutes
of 2003 established the Quality Assurance and Performance
Improvement Program (QAPI) within DCSS as a means to
effectively and continuously monitor, evaluate and improve
program performance of the child support program and to
maximize access to federal funds.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081