BILL ANALYSIS �
AB 1654
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1654 (Bonilla) - As Introduced: February 11, 2014
Policy Committee: Human
ServicesVote:7 - 0
Judiciary 9 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill increases the amount of child support passed through
to families on CalWORKs and disregards that amount when
calculating their CalWORKs grants. Specifically, this bill:
1)Aligns state statute with federal incentives by increasing the
monthly amount of child support passed through to a custodial
parent participating in the CalWORKs program from the current
$50 for all aided children to $100 for one aided child and
$200 for two or more aided children.
2)Further increases the amount of child support passed through
to custodial parents on CalWORKs if federal law is changed to
increase the amount of the disregard in which the federal
government is willing to share.
3)States the intent of the Legislature to increase payments of
child support obligations, improve the health and well-being
of low-income children in single-parent homes, and strengthen
family unity by authorizing the maximum amount of child
support permitted under federal law to be passed through to
children who receive CalWORKs basic needs assistance.
FISCAL EFFECT
1)Increased annual GF costs of approximately $5 million in FY
2014/15 and approximately $10 million ongoing.
In 2013, approximately 3,600 CalWORKs cases with one child and
12,500 cases with two or more children received child support
AB 1654
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in excess of $50 in any given month. Under this bill, families
would receive approximately $10.3 million in 2014-15 and $20.7
million ongoing of additional child support.
Because child support passed through is not counted as income
for purposes of determining CalWORKs assistance payments, this
additional child support amount results in a commensurate loss
of General Fund revenues. However, since 2008 the federal
government has been paying for 50% of the costs of the
pass-through. Thus, the cost to the state is only half of the
amount of the additional child support received by families.
2)Unknown, likely significant, costs to the Department of Child
Care Services.
COMMENTS
1)Purpose . This bill requires California to access the federal
option established under the 2005 Deficit Reduction Act to
increase the amount of child support passed through to
custodial parents in CalWORKs recipient families without
affecting program eligibility or the family's aid payment.
The author states, "Increasing the amount of child support
passed through to CalWORKs families provides more money for
needy children and increases their financial security. Modest
increases in child support can be very beneficial and be the
difference in a parent's ability to provide for their child's
basic needs."
2)Child Support "Pass-Through ." In keeping with the original
impetus for establishing the national child support program,
federal and state law still require child support payments for
TANF-assisted children to be withheld as a means of
reimbursing government for the cost of providing public
assistance. CalWORKs applicants are required to assign their
rights to any child support payments to the state as a means
of receiving CalWORKs assistance, provided that the child
support obligation does not exceed the CalWORKs grant amount.
Child support collections made are distributed 50% - 50% to
the state and federal government.
California has the option, under federal law, to keep its
share of the collection or distribute it to the family for
whom it was intended. Since October 2008, the federal
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government pays for 50% of the cost of any pass through up to
$100 for families with one child and up to $200 for families
with two or more children.
Currently, California passes through the first $50 of any
child support collected on behalf of a CalWORKs recipient
family and the federal government pays for half the cost.
3)Prior Legislation . The provisions of this bill were included
in the introduced version of AB 176 (Jones), Chapter 488,
Statutes of 2007, but were amended out of that bill in the
Senate. At that time, California was paying federal fines for
not yet having a single statewide child support enforcement
automation system and was facing a capped federal match for
automation costs. As a result, the state did not exercise the
federal option to pass through a higher amount of child
support dollars to CalWORKS families, instead keeping the
additional money for the state.
In November 2008, California fully implemented and received
federal certification for its statewide child support
automation system and the threat of fines and the capped
matching funds were eliminated. With the state facing better
circumstances, this bill seeks to exercise the federal option
to redirect more child support dollars to children on
CalWORKS.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081