Current issues related to poverty and public services in Athens County, Ohio.
Sep 2, 2008
New child support rules hit low income parents in the wallet
Were it not for other examples of how the Strickland administration is expanding social services to cover people at higher income levels by taking away support from people at lower income levels, this would be just another sad example of one hand of government not knowing what the other hand is doing. On the one hand, the Office of Child support is implementing new rules that will allow the state to recover part of the cost of providing Medicaid coverage by allowing the state to take part of a low income working custodial parent’s child support. Yet on the other hand, Governor Strickland established his Anti-Poverty Task Force which has a mandate to recommend ways to reduce the number of Ohioans (3.4 million) living below 200 percent of the federal poverty level. It is impossible to believe that any low income working custodial parents will be elevated out of poverty by having the state take part of their child support payments. It is also impossible to believe that any low income working non-custodial parent making between 150% and 200% of poverty will be elevated out of poverty by having more money withheld from their wages to pay cash medical support to the state.
The amount of child support lost to the custodial parent is a regressive tax on low income working custodial parents. By taxing these custodial parents the governor continues his practice of taking funds away from people with lower incomes to pay for expansion of services to people with higher incomes. Governor Strickland intends to pay for his promise to expand Medicaid coverage to children at higher income levels by taking child support funds that would have previously gone to low income working custodial parents. The cash medical provisions also operate as a regressive tax on the non-custodial parents. The cash medical amount for one child for a non-custodial parent making $16,640 per year is the same for a non-custodial parent making $44,000 annually, $775.00 per year. The cash medical amounts to 4.7% versus 1.8% of the total annual income for each non-custodial parent respectively.
Another example of where the governor has taken money from people with lower incomes and given it to people with higher incomes is the governor’s expansion of day care and his increases in day care reimbursement rates using federal Temporary Assistance for Needy Families (TANF) funds. Instead of using the TANF surplus to help address the immediate needs of the 130,000 poorest children in Ohio receiving Ohio Works First (OWF) benefits who live at about 50% of the poverty level, Governor Strickland choose instead to increase day care eligibility to families earning up to 200% of the poverty level and to increase the rates paid to day care providers regardless of their income.
This regressive taxing policy being implemented by the Strickland administration reverses a national philosophical trend to see the child support program as a family support program and not as a government cost recovery program. While considered a way of recovering money for the state when it was initially implemented, the child support program is now generally seen as an important and effective means of providing valuable financial support to a family, i.e., a “family friendly” program.
This trend was continued at the federal level with various provisions within the Deficit Reduction Act of 2005 (DRA). In the DRA, Congress provided several opportunities for Ohio to help enhance the financial support available to low income families that receive child support. But Ohio has failed to implement any of the options. Instead, Ohio has chosen to reverse course with its child support program and make Medicaid cost recovery a primary program goal. In moving toward that goal, the money that the custodial parent loses is taken by the state. That is certainly not family friendly.
Therefore, one obvious recommendation for Governor Strickland’s Anti-Poverty Task Force should be to stop the Office of Child Support’s implementation of new child support rules surrounding the collection of cash medical support. Adopting the “family friendly” provisions allowed by the DRA should also be one of the recommendations of the governor’s Anti-Poverty Task Force.
In these times of shrinking budgets and hard choices, those with the least should not be asked to pay for the benefits provided to those with more. Yet, the Strickland administration continues to tax and take away from the families with the lowest incomes in order to expand benefits to those higher incomes. Our priorities must be to use scarce resources to help those with the least first.
By implementing the provisions surrounding cash medical support, Ohio is implementing changes to its child support program that will make the calculation and payment of child support more complex, confusing, and costly for parents, more difficult and costly for employers and which provides no additional benefits to the children served by the program. A low income working custodial parent with a child on Medicaid will receive the same Medicaid coverage. The difference will be that the non-custodial parent will pay more and the custodial parent will receive less child support under these new rules.
~ Gregg Oakley, Athens County Child Support Enforcement Agency
Nov 19, 2007
The Deficit Reduction Act
Within the provisions of the Deficit Reduction Act of 2005 (DRA), Congress has provided several opportunities for states to help enhance the financial support available to low income families that receive child support. While considered a way of recovering money for the state when initially implemented, the child support program is now seen as an important and effective “family-friendly” financial support program. With so many families struggling to meet basic needs on a daily basis, Ohio needs to make the commitment now and enact these optional measures.
The DRA provides several important changes to how child support will be treated when a family is receiving cash public assistance benefits. The DRA requires that pre-assistance child support arrears will no longer be required to be assigned to the state upon application for assistance. Optional provisions contained within the DRA include changes in child support disregard and pass through rules, the ability for the state to release its claim in favor of the family to several types of arrears, and, perhaps most importantly, the ability for payments collected through the federal income tax offset program to be paid to the family first instead of the state.
Currently, as part of the application process for public assistance, the family must assign its right to receive child support payments to the state, as a way of reimbursing the state for the cost of the assistance. This assignment of rights includes assigning away the right to child support arrears that accumulated prior to the family applying for assistance. Under the DRA that assignment of pre-assistance arrears must stop. The option that the DRA provides with regard to pre-assistance arrears is the effective date for implementing the ban. The ban on the assignment of pre-assistance arrears must be enacted in Ohio no later than October 1, 2009, but can be enacted as early as October 1, 2008.
The DRA allows Ohio to disregard child support payments ($100 per month if one child and $200 per month if more than one child) when determining eligibility for cash assistance, as long as that child support is then passed through to the family. This disregard and pass through would allow a family to retain full eligibility for cash assistance and would enhance their monthly income by the child support collected. Currently, child support collected for a family receiving cash assistance goes to the government.
Other family-friendly options include modifying the distribution rules, so that more of the child support collected is paid to the family first, instead of the state. The most important of these options relates to the distribution rules surrounding money collected through the federal income tax refund offset program. Currently, payments received through tax refund offset are paid first toward any arrears owed to the state. Adopting the family-friendly option of paying those collections to the family first will be a tremendous improvement in Ohio’s support for families as the federal tax refund offset program is a significant source of collections on child support arrears.
The options provided by the DRA are significant and the benefits to the affected families are undeniable. The obstacles to enacting the various modifications to current policy have nothing to do with the obvious wisdom of enacting the changes. The obstacles relate to budget considerations surrounding the cost of foregoing the reimbursement provided by the child support collections and the cost of modifying computer systems.
Despite any costs, all of the available options should be enacted and implemented as soon as possible. Families with incomes low enough to qualify for cash assistance are struggling to survive on a daily basis (on less than half of the resources that we know they need to meet their most basic needs). These families need the extra support offered by the DRA now. It must be the highest priority to enact these options as soon as possible. Money must be found in the current budget. The survival of these families depends on Ohio becoming “friendly” now.
Sources/More Information
Dept. of Health and Human Services
Clasp.org
Thomas
[where: Athens, Ohio 45701]
Aug 21, 2007
e-QuickPay Cards Begin to Expire
Ohio’s e-QuickPay MasterCards, which directly deposit child support payments, will begin to expire this month,Ohio’s e-QuickPay MasterCards, which directly deposit child support payments, will begin to expire this month. Those whose addresses are not up to date with the Athens County Child Support Enforcement Agency may not receive replacement cards on time.
“We’re prohibited from forwarding these replacement cards, so if your address isn’t up to date you’ll experience some delays in receiving your new card,” said Randy Galbraith, director of the Athens County CSEA. He encouraged anyone who has moved since their last card was issued to call the CSEA at (740) 593-5046 to make arrangements to change current address information.
First implemented in 2004, e-QuickPay MasterCards are automatically loaded each month with child support payments and can be used as Debit cards at stores and ATMs. The State Office of Child Support offers this option to make accessing payments an easier, faster process. Guardians can enroll in e-QuickPay without having a credit check conducted and can then access deposits without having to pay check-cashing fees and without needing a separate bank account.
Renewal cards will be issued by the 20th day of whatever month is listed as the “Valid Thru” date on current cards. Cardholders can use current cards until the end of that month, and if they do not get a new card in the mail by the 20th, they should call the Ohio e-QuickPay customer service center at 1-800-503-1283.
Activation instructions will be enclosed with the renewal cards, and any current balances in child support accounts will not be affected by the card replacement.
The expiration of the first-issued e-QuickPay Cards falls in August, the month recognized statewide as Child Support Awareness Month. The Athens County CSEA has sponsored billboards and parenting-focused public service announcements and will continue to feature tips, data and suggestions based around the theme: “Child Support: It’s more than just money.”
The Athens County CSEA maintains approximated 4,500 cases each year and reported collections of more than $7 million during FY06. The agency also recently received an award for the highest percentage improvement for collections on current support among counties with similar caseloads in the state.
For more information about the Athens County Child Support Enforcement Agency, visit http://csea.athenscountygovernment.com, or call (740) 593-5046.
[where: Athens, Ohio 45701]
Aug 10, 2007
Child Support Awareness Month Parenting Tips
·Want your kids to respect you and others? Show them how by respecting them. Use their mistakes as opportunities to teach.
·You teach children not to call others names, so be sure you follow that rule, too. Never call your kids names, and watch how you interact with other adults in front of your children.
·Let your children know your love is unconditional. Praise them for their accomplishments and their efforts. Show them you’re there for them through failures and successes.
·Show your children you value them by giving age-appropriate responsibilities and showing your appreciation when these tasks are accomplished.
·Give your kids the opportunity to make decisions and try things on their own. This will give them confidence and help them acquire new skills.
·Parents shouldn’t fight in front of their kids. Protect your children from emotional violence just as you would any other violence.
·Children need structure, routine, limits and involvement from both parents. It makes them feel safe, secure and loved.
·Be interested in your children’s lives. Come watch their games and ask them about their day.
·Show your children affection not just when they are babies. Hug them and tell them you love them.
·PLAY with your kids! Don’t just watch them play. It will show them you’re interested in what they like, and you’ll have more fun, too!
·Make time to spend together, and also spend time with your kids individually. You will bond and learn to appreciate how each child is special.
·Listen to your kids when they talk to you. Stop what you’re doing, make eye contact, and listen. It will show them you respect them and they will learn to be better communicators.
Parenting—no matter what your relationship is with your children’s other parent—is the most challenging role an adult can have and comes with a lot of responsibility. If you have any words of wisdom that you think can help single parents or parents in general, or any other stories that go along with Child Support Awareness Month, we encourage your comments!
Also, here are some related links!
The Fatherhood Initiative
Athens County Child Support Enforcement Agency
Ohio E-Quickpay
[where: Athens, Ohio 45701]
Aug 8, 2007
Child Support Awareness Month
“Both custodial and non-custodial parents should be involved in the actual parenting of their children as much as possible,” CSEA Director Randy Galbraith said. “Of course kids need food on the table and clothes on their backs, but they also need the confidence and security that comes with knowing both parents love them. We can’t enforce that kind of child support, but we hope that raising awareness this month will help parents see how they can be a bigger part of their children’s lives, no matter what the circumstances.”
The Athens County Child Support Enforcement Agency was also recently recognized for increasing collections on current child support cases for FY05-06 at the State Child Support Training Conference on July 30 in Columbus.
Athens County CSEA Assistant Program Administrator Susan Douglas accepted the award from the State Office of Child Support on behalf of Athens County CSEA staff, whose efforts brought about the highest percentage improvement for collections on current support among counties with similar caseloads in the state.
During FY05-06, the Athens County CSEA increased collections from 61.76 percent to 63.12 percent, collecting more than $4.4 million in FFY2006. The agency maintains approximated 4,500 cases each year.
In addition to collecting child support payments, the CSEA assists Athens County residents in locating non-custodial parents, establishing paternity, and establishing and enforcing child support orders.