Columnist Sandy Thompson: Child support collections on the rise

Sandy Thompson

Friday, May 24, 2002 | 4:06 a.m.

WOULD YOU SPEND $17.5 million to get $70 million?

That's a good return for the Clark County District Attorney's Family Support Division, which through April of this fiscal year collected $58.6 million in owed child support. If that trend holds up for the next two months, the division will collect a record $70 million for this fiscal year -- an increase of $4.4 million over fiscal year 2001. The total amounts to about $291,000 per work day.

It's a boon for custodial parents. It's also good news for a beleaguered division that has dealt with burgeoning numbers of cases, monumental computer problems, phone service snafus and increasing demands for services from custodial parents. Although it's not a perfect system, some of the problems have been or are in the process of being resolved, according to division officials.

It's nearly impossible to determine what percentage the $70 million represents of all child support owed in Clark County. Not all child support orders are processed through the system; some are paid directly to custodial parents. Some of the 71,000 cases handled by the Family Support Division involve children who live out of state, but their non-custodial parents reside here.

Although the Family Support Division's budget is $17.5 million, Clark County kicks in less than $4 million. The remainder is paid for by the federal government through "incentives," according to Assistant District Attorney Mike Davidson, who oversees the division. For example, incentives are offered for the ability to establish paternity and collect arrearages. The incentives earned by the division pay for nearly 67 percent of its budget.

That's preferable to the $6 million in penalties the state was assessed in the past for delays and problems with its controversial and problem-plagued NOMADS computer system used to track child support information and collections. Costs for the system have exceeded $125 million. Although it may not be fully up to speed, the system is functioning. Under a federal plan to increase child support collections and as part of federal welfare reforms, states were mandated to set up effective computer systems to handle collection and reimbursements. States failing to meet the deadlines for such systems, including Nevada, were penalized.

Davidson, who is running for district attorney, says the Family Support Division staff deserves recognition for its efforts under adverse conditions.

Although the division has increased collections, there are still many custodial parents, who for whatever reason, cannot collect child support owed them. Some are turning to private collection agencies that charge fees or a percentage of the amount collected. According to a spokeswoman for ACES (Association for Children for Enforcement of Support), some agencies charge 30 percent to 50 percent of the support collected, plus a $495 application fee.

ACES is opposing a Michigan state proposal to turn over cases to private agencies if it cannot collect child support within a year. ACES says private agencies prey on the desperation of parents and hurt already cash-strapped families.

According to national figures provided by ACES, 60 percent of parents owed support receive less than the full amount they are due. More than 30 percent (2.3 million custodial parents) receive nothing. It's estimated that $78 billion of child support payments are in arrears.

To step up collection efforts throughout the nation, a proposed Child Support Enforcement Act would mandate that delinquent parents declare the amount of unpaid child support as a gain on their taxes, increasing their tax liability and creating another incentive to pay child support. Conversely, parents owed child support could deduct the unpaid amount from their income, providing financial relief.

It just may get the attention of some non-custodial parents who aren't meeting their obligations.