Divorce News

Child Support Costs Growing Faster Than Collections, Raising Concerns

WASHINGTON – A just-released report by the U.S. Government Accountability Office (GAO) requested by Ways and Means Human Resources Subcommittee Chairman Wally Herger (R-CA) concluded that there may be ways to reduce administrative expenditures in the nation’s child support program. The report suggests the U.S. Department of Health and Human Services (HHS) Office of Child Support Enforcement work to develop staffing guidelines and a plan to conduct administrative cost audits.

Between fiscal years 2000 and 2004, total net federal expenditures for administrative costs in the child support program increased 23 percent to $2.8 billion, with personnel costs being identified as a major contributor. In five states, federal expenditures rose over 50 percent while they dropped in 24 states. Over that time child support collections increased by 12 percent – or about half as fast as the increase in net federal spending.

A June 2005 GAO study noted that the share of federal funding (88 percent of total program costs) in the child support enforcement program is among the most generous of major entitlement programs, far exceeding federal shares under the foster care and adoption and Medicaid programs.

"Federal taxpayers contribute billions of dollars each year to state child support programs, and this contribution is projected to keep increasing," said Chairman Herger. "It is important that this program operate effectively to serve families. But it also is important that taxpayer dollars are used as efficiently as possible. This GAO report shows there is continued room for improvement, especially with regard to how efficiently states use federal funds. I look forward to working with HHS, GAO, and the states to continue to improve the overall effectiveness and efficiency of the child support program."

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