Increase Child Support Collections and Payment Reliability

TACTICS

New Hire Reporting Improvement

Obtain reliable financial information through the New Hire Reporting process

Business Problem/Opportunity: Operations Division to manage New Employee Registry reporting compliance and accuracy, and to obtain employment and location information for parents ordered to pay support, thereby increasing collections to families via Income Withholding Orders.

Current Status: Green circle92% completed

Business Outcomes:

  • Compliance with New Employee Registry reporting requirements and accuracy of data will increase
  • Employment will be reported for more parents ordered to pay support
  • More Income Withholding Orders will be generated and collections to families will increase

Critical Success Factors:

  • Increased compliance rate with new employee hiring requirements
  • Increase Income Withholding Orders generated from new hire registry

Re-examine Compromise of Arrears Program

75 percent bar

Re-examine the "Compromise of Arrears" debt reduction program to increase usability by customers and local child support agencies

Business Problem/Opportunity: Perform system enhancements to the Compromise of Arrears Program to improve business processes. Review Compromise of Arrears Program and consider any needed changes to address uncollectible debt and increase collection.

Current Status:  73% completed 

Business Outcomes:

  • Expand program access to more participants
  • Increase collections
  • Decrease uncollectible arrears
  • Improve long-term program efficiencies

Critical Success Factors: Increase overall collections and increase access and usability for customers.

Implement Smith-Ostler Functionality

0 percent bar

Automate many tasks associated with enforcement of Smith-Ostler cases, to allow such cases to be opened and enforced in all counties

Business Problem/Opportunity: In child support cases where a person’s income fluctuates or includes periodic bonuses, courts may make an order for additional support, termed “Smith/Ostler” orders after California case law including parties with those names. This additional support is not included in the basic guideline amount, but must be tracked separately. Many local agencies are unable to collect this additional amount because Child Support Enforcement has not been programmed to account for this type of order, and the manual process to track the additional support amount outside of Child Support Enforcement is prohibitive for many local agencies.

Current Status: Blue circle0% completed

Business Outcomes:

  • Increased cases
  • Increased collections
  • Increased non-IV-D cases

Critical Success Factors: Increased cases with Smith-Ostler orders.

 

2020 - Address New Hire Reporting - COMPLETE

Obtain reliable financial information through the New Hire Reporting process

Business Problem/Opportunity: Third party vendor, Stellarware, was hired to manage New Employee Registry reporting compliance and accuracy, and to obtain employment and location information for parents ordered to pay support, thereby increasing collections to families via Income Withholding Orders.

Current Status: 100% completed

Business Outcomes:

  • Compliance with New Employee Registry reporting requirements and accuracy of data will increase
  • Employment will be reported for more parents ordered to pay support
  • More Income Withholding Orders will be generated and collections to families will increase

Critical Success Factors: Due to statewide budget cuts resulting from the COVID-19 pandemic, contract with Stellarware ended.

2021 - DRA Implementation - COMPLETE

Prioritize current support and family-owed overdue support before government-owed overdue support

Business Problem/Opportunity: Effective May 1, 2020, Governor Gavin Newsom issued an Executive Order that allowed California Child Support Services to distribute current and overdue support collected to families first and amounts owed to the government second, a change permitted under Federal Law. On July 16, 2021, Governor Newsom signed Assembly Bill 135 making the change permanent in statute and prioritizing family support over government reimbursement in cases where children had received Temporary Aid to Needy Families.

Current Status: 100% completed

Business Outcomes: California will distribute all collections, including federal tax refund offsets, within a case to current child support and family-owed overdue support before government-owed overdue support.

Critical Success Factors: Increased support to families