Office of Child Support Enforcement
FY 2008 Preliminary Report

DEPARTMENT OF HEALTH AND HUMAN SERVICES
ADMINISTRATION FOR CHILDREN AND FAMILIES
OFFICE OF CHILD SUPPORT ENFORCEMENT

Program Highlights

The Office of Child Support Enforcement (OCSE) Preliminary Report highlights financial and statistical program achievements which occurred in Fiscal Year (FY) 2008. The information was retrieved from State-submitted reports on program status sent to the Federal government on a quarterly and annual basis. In general, results are very positive and indicate that $26.6 billion in child support payments was collected and distributed; over $24 billion was distributed to families or Foster Care agencies; 1.8 million paternities were established and acknowledged; and 1.2 million child support orders were established.

Note: The Child Support Performance and Incentive Act of 1998 (CSPIA) required the States to have complete and reliable data for purposes of computing incentives. Federal auditors begin their review of State data after the mandatory December 31^st deadline for data submission. Readers should note that no determination or assumption has been made in this report regarding data reliability for each State for fiscal year 2008. The numbers are presented as submitted to OCSE.

Caseload. OCSE defines a child support case as a parent (mother, father, or putative father) who is now or eventually may be obligated under law for the support of a child or children receiving services under the Child Support Program, Title IV-D of the Social Security Act. A current assistance case is one in which the children are: (1) recipients of Temporary Assistance for Needy Families (TANF) under Title IV-A of the Social Security Act or; (2) entitled to Foster Care maintenance payments under Title IV-E of the Social Security Act. In addition, the children’s support rights have been assigned by a caretaker to the State and a referral to the State IV-D agency has been made. A former assistance case is a case in which the children were formerly receiving Title IV-A (AFDC or TANF) or Title IV-E (Foster Care) services.

A never assistance case is a case in which the children are receiving services under the Title IV-D program, but are not currently eligible for and have not previously received TANF and Foster Care assistance. This includes cases in which the family is receiving child support services as a result of a written application (including cases in which children are receiving State, not Title IV-E, Foster Care services) or a case in which they are Medicaid recipients not receiving additional assistance.

There were 15.7 million cases in the Child Support Enforcement Program in FY 2008, a slight decrease of 0.5 percent in the caseload from FY 2007. In FY 2008, there were 2.0 million current assistance cases, a decrease of 4.1 percent from FY 2007; 7.1 million former assistance cases, a decrease of 1.8 percent from FY 2007; and 6.6 million never assistance cases reported, an increase of 2.1 percent from FY 2007 (Table 2). The overall decrease in caseload was due to a drop in the number of current assistance and former assistance families between fiscal years 2007 and 2008.

Paternities Established. Paternity establishment involves the legal establishment of fatherhood for a child. One way paternity can be established is by a voluntary acknowledgement signed by both parents as part of an in-hospital or other acknowledgement program.

In FY 2008, about 1.8 million paternities were established or acknowledged, of which 1.2 million involved in-hospital or other paternity acknowledgments.

Orders Established. Nearly 1.2 million child support orders were established in FY 2008, representing a 1.3 percent increase over the number established in FY 2007 (Table 2). In FY 2008, current assistance orders accounted for 16.6 percent of these orders, former assistance orders accounted for 32.5 percent, and never assistance orders accounted for 50.8 percent of the support orders established.

Collections Distributed. Total distributed child support collections amounted to $26.6 billion in FY 2008 (shown in Tables 1, 3, and 7). This is a 6.9 percent increase over the amount collected and distributed in FY 2007.

Collections Received. In FY 2008, over $32.2 billion was received for child support through different methods of collection, such as income withholding, unemployment compensation interception, and State or Federal tax refund offsets. Overall, 68.0 percent of payments were collected via income withholding; 2.0 percent from unemployment compensation; 9.0 percent from tax offsets; 16.4 percent from other sources; 4.3 percent from other States, and 0.4 percent from other countries (Figure 7).

Collections per Full-Time Equivalent (FTE) Staff. There were 59,995 FTE staff working in the States and jurisdictions in the Child Support Enforcement Program in FY 2008 (Table 2). Nationally, the amount of child support collected per FTE was over $443,000 compared to the $414,000 per FTE in FY 2007, a 7.1 percent increase.

Expenditures. Total administrative expenditures were $5.9 billion in FY 2008, a 5.1 percent increase over those in the previous year. The Federal share of expenditures was $3.7 billion, and the State share was $2.2 billion (Table 1).

Collections Due and Distributed. The total amount of current support due for FY 2008 was over $31 billion. Over $19 billion, or 62 percent of that amount was collected and distributed, an increase of 3.3 percentage points over the percentage of current support collected and distributed in FY 2007.

The total amount of arrearages reported for all previous fiscal years was over $105 billion and over $8 billion of these arrearages was collected and distributed in FY 2008, an increase of 13 percent over the amount of arrears collected and distributed in FY 2007 (Table 5).

Over 11 million cases had arrears due and in FY 2008, over 7.1 million or 63 percent of these cases had collections (Table 6). In addition, increases were noted for total cases in which a collection was made. Preliminary data reveal that there are 8.9 million cases with collections, which represents a 2.8 percent increase over the number of total cases with collections in FY 2007 (Table 2).

The total number of cases with an order established in FY 2008 was 12.4 million. This represents a 0.4 percent increase over the number of cases with orders established in the previous fiscal year (Table 2).

The total number of children in the Title IV-D caseload in FY 2008 was 17.0 million, a 0.5 percent decrease from the 17.1 million children in the Title IV-D caseload in FY 2007 (Table 2).

There were 26 comprehensive Tribal Child Support Enforcement Programs in FFY 2008. These Tribes distributed nearly $20 million in total collections in FY 2008 (Table 15), a 22.7 percent increase from the $16 million in FY 2007. There were 29,251 cases in the Tribal Program caseload (Table 18), a 0.8 percent increase from FY 2007; over 18,000 children with paternity established (Table 21), a 20.7 percent increase from FY 2007; and a total of 13,928 support orders established (Table 19), a 10.8 percent increase from FY 2007.

The attached tables and charts provide further preliminary detail regarding collections, expenditures, caseload, paternities, orders established, and other program statistics, related to both the Child Support Enforcement and Tribal Child Support Enforcement Programs for FY 2008.

Summary Tables FY 2008

• Table 1 - Financial Overview, FY 2007 and FY 2008
• Table 2 - Statistical Overview, FY 2007 and FY 2008
• Table 3 - Total Distributed Collections, FY 2008
• Table 4 - Statistical Program Status, FY 2008
• Table 5 - Current and Arrears Collections Due and Distributed, FY 2008
• Table 6 - Cases with Arrears Due and Cases Paying TowardsArrears, FY 2008
• Table 7 - Collections and Expenditures, FY 2008
• Table 8 - Collections Sent to Other States
• Table 9 - Paternity Establishment, FY 2008
• Table 10 - Net Undistributed Collections (UDC), FY 2008
• Table 11 - Medical Support and Arrears-Only Cases with Orders Established, FY 2008
• Table 12 - Health Insurance Provided as Ordered, FY 2008
• Table 13 - Unaudited Incentive Performance Measures, FY 2008
• Table 14 - Tribal Program Financial and Statistical Overview for Five Consecutive Fiscal Years
• Table 15 - Tribal Program Total Distributed Collections for Two Consecutive Fiscal Years
• Table 16 - Tribal Program Total Collections Forwarded to States for Two Consecutive Fiscal Years
• Table 17 - Tribal Program Expenditures (Outlays) for Two Consecutive Fiscal Years
• Table 18 - Tribal Program Caseload for Two Consecutive Fiscal Years
• Table 19 - Tribal Program Support Orders Established for Two Consecutive Fiscal Years
• Table 20 - Tribal Program Total Number of Children Without Paternities Established for Two Consecutive Fiscal Years
• Table 21 - Tribal Program Children with Paternities Established for Two Consecutive Fiscal Years
• Table 22 - Tribal Program Total Amount of Current Support Duefor Two Consecutive Fiscal Years
• Table 23 - Tribal Program Total Amount of Current SupportCollected and Distributed for Two ConsecutiveFiscal Years
• Table 24 - Tribal Program Total Amount of Past Due Support Owed for Two Consecutive Fiscal Years
• Table 25 - Tribal Program Total Amount of Past Due Support Collected and Distributed for Two Consecutive Fiscal Years

Nationwide, Regional and State Boxscores FY 2008

Nationwide Boxscores

NATIONWIDE		% change from FY 07
Collections Distributed	$26,560,705,858	6.9%
- Current Assistance	$977,640,254	3.3%
- Former Assistance	$9,940,415,119	5.0%
- Never Assistance	$12,009,211,914	6.1%
- Medicaid Assistance	$3,633,438,571	16.6%
Total Expenditures	$5,877,699,305	5.1%
Cost Effectiveness ($ Change)	$4.79	$0.07
Paternities & Acknowledgements	1,783,088	3.1%
Orders Established	1,192,808	1.3%
Full Time Equivalent Staff	59,995	-0.2%
Total Caseload	15,675,989	-0.5%
- Current Assistance	2,048,241	-4.1%
- Former Assistance	7,068,930	-1.8%
- Never Assistance	6,558,818	2.1%
Net Undistributed Collections	$704,018,474	49.2%
Arrears Amounts Due	$105,548,155,058	-0.9%

List of Charts

• Figure 1 - Total Caseload by Current, Former, and Never Assistance and Percentage for Five Consecutive Fiscal Years
• Figure 2 - Percentage of Caseload by State, FY 2008
• Figure 3 - Total and Percentage of IV-D Cases With and Without Support Orders Established for Five Consecutive Fiscal Years
• Figure 4 - Number of Cases for Which a Collection was Made for Five Consecutive Fiscal Years
• Figure 5 - IV-D and Statewide Paternities Established or Acknowledged for Five Consecutive Fiscal Years
• Figure 6 - Percent of Total Distributed Collections by Current, Former, Never, and Medicaid Cases, FY 2008
• Figure 7 - Total Collections Received by Method of Collection, FY 2008
• Figure 8 - Total Distributed Collections by TANF/Foster Care and Non-TANF Collections for Five Consecutive Fiscal Years C-10
• Figure 9 - Percentage of Net Undistributed Collections (UDC) By Category and Age, FY 2008
• Figure 10 - Total Administrative Expenditures for Five Consecutive Fiscal Years
• Figure 11 - Total ADP Expenditures for Five Consecutive Fiscal Years
• Figure 12 - Total Number of Children in the IV-D Program for Five Consecutive Fiscal Years
• Figure 13 - Number of Unique Persons Matched and Number of Persons In the FCR by Participant Type for Five Consecutive Fiscal Years
• Figure 14 - Federal Offset Collections for Five Processing Years

Appendix

Strategic Plan FY 2005-2009

Goals, Objectives, and Indicators

States continue to make progress towards achieving the goals and objectives of the FY 2005-2009 National Child Support Enforcement Strategic Plan, as shown in the following charts. For example, in FY 2008, the percentage of children in the IV-D caseload born out-of-wedlock with paternity established or acknowledged increased 1.2 percentage points over the corresponding percentage in FY 2007 and the percentage of IV-D cases with support orders increased 0.7 percentage points over the previous year’s percentage. Likewise, in FY 2008, the percentage of IV-D cases with support orders (excluding arrears-only cases) in which medical support was ordered and provided increased 5.7 percentage points over the percentage for this category of cases in FY 2007.

In addition, the IV-D collection rate for current support increased 0.7 percentage points over the rate for the previous fiscal year and the percentage of arrears cases with a collection on arrears increased 2.0 percentage points over the previous year’s percentage. Finally, the cost effectiveness ratio (total dollars collected per $1 of expenditure) increased from $4.73 in FY 2007 to $4.79 in FY 2008. The latter increase in FY 2008 represents a 1.3 percent increase over the cost-ratio amount of FY 2007.

This progress means that, each year, child support is becoming a reliable source of income for more children in the IV-D caseload.

National Child Support Enforcement Strategic Plan FY 2005-2009
Goals, Objectives and Indicators
During Fiscal Years 2004 to 2008

GOAL #1: ALL CHILDREN HAVE ESTABLISHED PARENTAGE

GOAL #1: ALL CHILDREN HAVE ESTABLISHED PARENTAGE
Indicator	2004	2005	% change	2006	% change	2007	% change	2008A	% change
DNA - Data not available.
A - Data reliability audits have not been completed for some performance measures.
Objective A: To increase the percentage of children with a legal relationship with their parents
Total Number of Children in the IV-D Caseload Open at the End of the Preceding FY Born O-o-W (OCSE-157, line 5 or 5a)	2,598,613	2,616,054	0.7%	2,963,367	13.3%	2,987,014	0.8%	2,880,459	-3.57%
Total Number of Children in the IV-D Caseload Open During or at the End of the FY, who have been Born O-o-W, with Paternity Established or Acknowledged (OCSE-157, line 6)	2,225,781	2,287,607	2.8%	2,656,885	16.1%	2,797,907	5.3%	2,734,576	-2.26%
1. The Percentage of IV-D Children Born O-o-W with Paternity Established or Acknowledged (Statutory Caseload Percentage)	85.7%	87.4%		89.7%		93.7%		94.9%
Total Number of Children in the State Born O-o-W During the Preceding FY (OCSE-157, line 8 or 8a)	1,017,443	1,070,557	5.2%	1,115,226	4.2%	1,181,565	5.9%	1,264,892	7.05%
Total Number of Minor Children in the State who have been Born O-o-W with Paternitiy Established or Acknowledged During the Year (OCSE-157, line 9)	1,006,337	1,046,765	4.0%	1,091,492	4.3%	1,155,594	5.9%	1,210,387	4.74%
2. The Percentage of All Children in the State Born O-o-W with Paternity Established or Acknowledged (Statutory Statewide Percentage)	98.9%	97.8%		97.9%		97.8%		95.7%
Children in the State Born O-o-W During the Current FY (OCSE-157, line 8)	1,234,303	1,290,192	4.5%	1,077,714	-16.5%	1,078,212	0.0%	1,151,914	6.84%
Children in the State with Paternitiy Acknowledged During the Fiscal Year (OCSE-157, line 10)	888,607	917,164	3.2%	779,758	-15.0%	798,002	2.3%	907,068	13.67%
3. The Percentage of Children Born O-o-W with Voluntary Paternity Acknowledgments	72.0%	71.1%		72.4%		74.0%		78.7%
Number of Children in IV-D Cases Open at the End of the FY (OCSE-157, line 4)	17,289,695	17,173,286	-0.7%	17,261,575	0.5%	17,121,013	-0.8%	17,031,940	-0.52%
Children in IV-D Cases Open at the End of FY with Paternity Resolved (OCSE-157, line 7)	14,087,430	14,203,793	0.8%	14,416,022	1.5%	14,273,054	-1.0%	14,346,042	0.51%
4. The Percentage of Children in the IV-D Caseload with Paternity Resolved	81.5%	82.7%		83.5%		83.4%		84.2%
5. The Percentage of Children Living in Married Couple Households (TANF marriage measure)	DNA	DNA		DNA		DNA		DNA

GOAL #2: ALL CHILDREN IN IV-D CASES HAVE SUPPORT ORDERS

GOAL #2: ALL CHILDREN IN IV-D CASES HAVE SUPPORT ORDERS
Indicator	2004	2005	% change	2006	% change	2007	% change	2008	% change
DNA - Data not available.
Objective A: To increase the percentage of IV-D cases with support orders
Cases Open at the End of the FY (OCSE-157, line 1)	15,803,921	15,809,171	0.0%	15,793,220	-0.1%	15,713,625	-0.5%	15,634,146	-0.51%
Cases Open at the End of the FY with Support Orders Established (OCSE-157, line 2)	11,753,603	11,994,590	2.1%	12,215,891	1.8%	12,318,042	0.8%	12,363,221	0.37%
1. The Percentage of IV-D Cases with Support Orders (Statutory Support Order Performance Level)	74.4%	75.9%		77.3%		78.4%		79.1%
Objective B: To increase the percentage of interjurisdictional IV-D cases with orders for support
Interstate Cases Received From Another State Open at the End of the FY (OCSE-157, line 1b)	955,313	974,373	2.0%	954,862	-2.0%	963,942	1.0%	952,787	-1.16%
Interstate Cases Received From Another State with Support Orders Established Open at the End of the FY (OCSE-157, line 2b)	784,572	797,321	1.6%	800,085	0.3%	817,248	2.1%	812,780	-0.55%
1. The Percentage of Interstate Responding IV-D Cases with Support Orders	82.1%	81.8%		83.8%		84.8%		85.3%

GOAL #3: ALL CHILDREN IN IV-D CASES HAVE MEDICAL COVERAGE

GOAL #3: ALL CHILDREN IN IV-D CASES HAVE MEDICAL COVERAGE
Indicator	2004	2005	% change	2006	% change	2007	% change	2008	% change
DNA - Data not available.
Objective A: To increase the percentage of IV-D cases with orders for Medical Support
Cases Open at the End of the FY With Support Orders Established (OCSE-157, line 2)	11,753,603	11,994,590	2.1%	12,215,891	1.8%	12,318,042	0.8%	12,363,221	0.37%
Arrears-Only IV-D Cases With Orders Established Open at the End of the FY (OCSE-157, line 2e)	DNA	DNA		2,559,157	DNA	2,509,760	-1.9%	2,642,351	5.28%
Cases Open at the End of the FY Where Medical Support is Ordered (OCSE-157, line 21)	7,507,956	7,733,095	3.0%	7,039,308	-9.0%	7,299,989	3.7%	7,465,674	2.27%
1. The Percentage of IV-D Cases with SupportOrders (excluding Arrears-Only Cases) in Which Medical Support is Ordered	63.9%	64.5%		72.9%		74.4%		76.8%
Objective B: To increase the percentage of IV-D cases in which Medical Support is provided
Cases Open at the End of the FY with Support Orders Established (OCSE-157, line 2)	11,753,603	11,994,590	2.1%	12,215,891	1.8%	12,318,042	0.8%	12,363,221	0.37%
Arrears-Only IV-D Cases With Orders Established Open at the End of the FY (OCSE-157, line 2e)	DNA	DNA		2,559,157	DNA	2,509,760	-1.9%	2,642,351	5.28%
Cases Open at the End of the FY in Which Medical Support is Ordered and Provided (OCSE-157, line 21a)	DNA	DNA		1,914,570	DNA	2,195,497	14.7%	2,734,171	24.54%
1. The Percentage of IV-D Cases with Support Orders (excluding Arrears-Only Cases) in which Medical Support is Ordered and Provided	DNA	DNA		19.8%		22.4%		28.1%
2. The Percentage of IV-D Cases (excluding Arrears-Only Cases) with Medical Coverage Provided from Any Source (Beginning in FY 2009, OCSE-157, line 35)	DNA	DNA		DNA		DNA		DNA
3. Medicaid Cost Savings Attributed to Medicaid Eligible Children in the IV-D Caseload Covered By Private Insurance or Receiving Cash Medical Support	DNA	DNA		DNA		DNA		DNA

GOAL #4: ALL CHILDREN IN IV-D CASES RECEIVE FINANCIAL SUPPORT FROM PARENTS AS ORDERED

GOAL #4: ALL CHILDREN IN IV-D CASES RECEIVE FINANCIAL SUPPORT FROM PARENTS AS ORDERED
Indicator	2004	2005	% change	2006	% change	2007	% change	2008	% change
DNA - Data not available.
Objective A: To increase the IV-D collection rate
1. Total Collections Distributed (OCSE-34A, line 8)	$21,861,258,876	$23,005,880,131	5.2%	$23,933,384,257	4.0%	$24,854,768,488	3.8%	$26,471,374,480	6.50%
Total Distributed Collections Distributed to the Family or Foster Care (OCSE-34A, line 7c)	$19,677,537,819	$20,835,786,063	5.9%	$21,836,442,126	4.8%	$22,794,065,526	4.4%	$24,082,253,526	5.65%
2. The Percentage of Total Distributed Collections Disbursed to Families	90.0%	90.6%		91.2%		91.7%		91.0%
Net Undistributed Collections Unresolved (OCSE-34A, line 9d-4th qtr.; in FY 2008, Part 2, line 8).	DNA	$200,738,656		$191,129,354	-4.8%	$181,652,610	-5.0%	$156,101,632	-14.07%
Total Collections Distributed (OCSE-34A, line 8)	$21,861,258,876	$23,005,880,131	5.2%	$23,933,384,257	4.0%	$24,854,768,488	3.8%	$26,471,374,480	6.50%
3. Accumulated Year-End Undistributed Collections as a Percentage of Total Annual Collections (Undistributed collections unresolved)	DNA	0.87%		0.80%		0.73%		0.59%
Total Amount of Current Support Due for the FY for All IV-D Cases (OCSE-157, line 24)	$27,979,678,335	$29,066,395,088	3.9%	$29,920,082,020	2.9%	$30,759,162,630	2.8%	$31,419,959,739	2.15%
Total Amount of Support Distributed as Current Support During the FY (OCSE-157, line 25)	$16,505,911,657	$17,413,650,902	5.5%	$18,057,165,308	3.7%	$18,821,301,445	4.2%	$19,439,909,357	3.29%
4. IV-D Collection Rate for Current Support (Statutory Current Payment Performance Level)	59.0%	59.9%		60.4%		61.2%		61.9%
5. The Percentage of IV-D Cases with Support Orders Where the Percetnage of Current Child Support Paid is: 0%, 1-25%, 26-50%, 51-75%, 76-99% and 100%	DNA	DNA		DNA		DNA		DNA
Cases witih Arrears Due During the FY (OCSE-157, line 28)	10,931,051	11,057,080	1.2%	11,157,421	0.9%	11,261,268	0.9%	11,246,940	-0.13%
Cases Paying Towards Arrears During the FY (OCSE-157, line 29)	6,544,636	6,639,243	1.4%	6,782,682	2.2%	6,904,335	1.8%	7,121,263	3.14%
6. The Percentage of Arrears Cases with a Collection on the Arrears (Statutory Arrearage Payment Performance Level)	59.9%	60.0%		60.8%		61.3%		63.3%
Objective B: To increase the percentage of interjurisdictional IV-D cases with collections
Interstate Cases Received From Another State Open at the End of the FY (OCSE-157, line 1b)	955,313	974,373	2.0%	954,862	-2.0%	963,942	1.0%	952,787	-1.16%
Interstate Cases Received From Another State with Collections During the FY (OCSE-157, line 18a)	559,476	571,314	2.1%	582,702	2.0%	594,273	2.0%	612,973	3.15%
1. The Percentage of Interstate Responding IV-D Cases With Collections	58.6%	58.6%		61.0%		61.7%		64.3%
Objective C: To increase the number of families leaving TANF who receive child support collections
TANF Cases Closed During the FY	1,992,483	1,864,791	-6.4%	1,814,285	-2.7%	1,791,140	-1.3%	??
TANF Cases Closed During the FY Where a Child Support Payment was Received (OCSE-157, line 14)	331,447	309,149	-6.7%	283,556	-8.3%	274,106	-3.3%	268,314	-2.11%
1. The Percentage of TANF Cases Closed in which Child Support was Received	16.6%	16.6%		15.6%		15.3%		??

GOAL #5: THE IV-D PROGRAM WILL BE EFFICIENT AND RESPONSIVE IN ITS OPERATIONS

GOAL #5: THE IV-D PROGRAM WILL BE EFFICIENT AND RESPONSIVE IN ITS OPERATIONS
Indicator	2004	2005	% change	2006	% change	2007	% change	2008	% change
DNA - Data not available.
Objective A: To operate an efficient program
Total Collections Distributed (OCSE-34A, line 8)	$21,861,258,876	$23,005,880,131	5.2%	$23,933,384,257	4.0%	$24,854,768,488	3.8%	$26,471,374,480	6.50%
PLUS
Collections Forwarded to Other States (OCSE-34A, line 5)	$1,334,057,553	$1,398,659,978	4.8%	$1,438,215,912	2.8%	$1,471,340,729	2.3%	$1,491,124,149	1.34%
PLUS
Fees Retained by Other States (OCSE-34A, line 13)	$787,558	$892,848	13.4%	$1,292,285	44.7%	$925,630	-28.4%	$1,038,056	12.15%
Total Dollars Collected (OCSE-34A, lines 5+8+13)	$23,196,103,987	$24,405,432,957	5.2%	$25,372,892,454	4.0%	$26,327,034,847	3.8%	$27,963,536,685	6.22%
Total Administrative Expendenditures (OCSE-396A, line 9)	$5,322,260,723	$5,352,566,340	0.6%	$5,561,444,218	3.9%	$5,593,864,242	0.6%	$5,718,597,171	2.23%
LESS
Non IV-D Costs (OCSE-396A, line 1b)	$24,933,588	$22,451,417	-10.0%	$20,458,230	-8.9%	$23,829,852	16.5%	$19,593,789	-17.78%
Total Dollars Expended (OCSE-396A, lines 9-1b)	$5,297,327,135	$5,330,114,923	0.6%	$5,540,985,988	4.0%	$5,570,034,390	0.5%	$5,699,003,382	2.32%
1. Total Dollars Collected per $1 of Expenditure (Statutory Cost-Effectiveness Performance Level)	$4.38	$4.58	4.6%	$4.58	0.0%	$4.73	3.2%	$4.91	3.81%
2. Medicaid Cost Savings Attributed to Medicaid Eligible Children in the IV-D Caseload Covered By Private Insurance or Receiving Cash Medical Support	DNA	DNA		DNA		DNA		DNA
Objective B: To operate a responsive program
Objective C: To increase personal responsibility in public assistance and benefit programs
1. The Percentage of TANF Cases Closed in which Child Support was Received
2. Total Program Savings to Federal and State Benefit programs attributable to use of the FPLS Data as reported to OCSE by other agencies

Incentive Formulas

CSPIA Incentive Measure Formulas

INCENTIVE MEASURE	FORM AND LINE NUMBERS
PATERNITY ESTABLISHMENT PERCENTAGE (PEP): IV-D
Number of Children in the Caseload in the FY or as of the End of the FY Who Were Born Out-of-Wedlock with Paternity Established or Acknowledged divided by Number of Children in the Caseload as of the End of the Preceding FY Who Were Born Out-of-Wedlock	OCSE-157, Line 6 divided by OCSE-157, Line 5a
PATERNITY ESTABLISHMENT PERCENTAGE (PEP): STATEWIDE
Number of Minor Children in the State Born Out-of-Wedlock with Paternity Established or Acknowledged During the FY divided by Number of Children in the State Born Out-of-Wedlock During the Preceding FY	OCSE-157, Line 9 divided by OCSE-157, Line 8a
SUPPORT ORDER ESTABLISHMENT
Number of IV-D Cases with Support Orders divided by Number of IV-D Cases	OCSE-157, Line 2 divided by OCSE-157, Line 1
CURRENT COLLECTIONS
Amount Collected for Current Support in IV-D Cases divided by Amount Owed for Current Support in IV-D Cases	OCSE-157, Line 25 divided by OCSE-157, Line 24
ARREARAGE COLLECTIONS
Number of IV-D Cases Paying Toward Arrears divided by Number of IV-D Cases with Arrears Due	OCSE-157, Line 29 divided by OCSE-157, Line 28
COST-EFFECTIVENESS
Total IV-D Dollars Collected divided by Total IV-D Dollars Expended	OCSE-34A, Lines 4b + 4c + 8 + 11 of column (G) divided by OCSE-396A, Line 7 columns (A) + (C) less Line 1(c) columns (A) + (C)
STATE COLLECTION BASE
2 times (Current Assistance + Former Assistance Collections + Medicaid Assistance) + Never Assistance Collections + Fees Retained by Other States	OCSE-34A: 2 times ((Line 4b, columns A+B+C+D+E) + (Line 8, columns A+B+C+D+E)) + Line 4b, column F + Line 8, column F + Line 4c + 11 of column G

How an Incentive Payment is Determined

Because of the complexity of the incentives formula set forth in section 458 of the Social Security Act, we have included an example of how the system would work in a particular year for State A. Let’s make the following assumptions regarding State A (See Table A):

• State A’s paternity performance level is 93 percent, making its applicable percent 100 percent (see Table C)
• State A’s order establishment performance level is 74 percent, making its applicable percent 88 percent (see Table C)
• State A’s current support collections performance level is 59 percent, making its applicable percent 69 percent (see Table D)
• State A’s arrearage support collections performance level is 60 percent, making its applicable percent 70 percent (see Table D)
• State A’s cost-effectiveness ratio is $4.40, making its applicable percent 80 percent (see Table E)
• State A’s collections base is $50 million (determined by 2 times the collections for Current Assistance, Former Assistance, and Medicaid Never Assistance plus Never Assistance collections and fees retained by other states)

• The maximum incentive for State A is:

  • $50 million collections base for paternity ($50 mil. times 1.00), plus
  • $44 million collections base for orders ($50 mil. times 0.88), plus
  • $34.5 million collections base for current collections ($50 mil. times 0.69), plus
  • $26.25 million collections base for arrearage collections ($50 mil. times 0.75[1] times 0.70) plus
  • $30.0 million collections base for cost-effectiveness ($50 million times 0.75[2] times 0.80) equals
  • Resulting in a maximum incentive base amount of $184.75 million for State A.

Table A

Table A

Measure	State A’s Performance Level	Applicable Percent based on Performance	Weight	State A’s Collection Base (assumed to be $50,000,000)
Paternity Establishment	93%	100%	1.00	$50,000,000
Order Establishment	74%	88%	1.00	$44,000,000
Current Collections	59%	69%	1.00	$34,500,000
Arrearage Collections	60%	70%	0.75	$26,250,000
Cost-Effectiveness	$4.40	80%	0.75	$30,000,000
State A’s Maximum Incentive Base Amount				$184,750,000

• We must now make some assumptions regarding the other States. Let’s assume that there are only two other States in our country--and the maximum incentive base amount is $84 million for State B and $50 million for State C, making the total maximum incentive base amount $318.75 million for all three States (See Table B).

• We must now determine what is State A’s share of the $318.75 million. It is 58 percent ($184.75 divided by $318.75).

Table B

Table B

State	Maximum Incentive Base Amounts	State’s Share of $318,750,000	Incentive Payment Pool $461,000,000
A	$184,750,000	0.58	$267,199,216
B	$84,000,000	0.26	$121,487,059
C	$50,000,000	0.16	$72,313,725
Totals	$318,750,000	1.00	$461,000,000

• Let us assume it is FY 2003, so the incentive payment pool for the FY is $461 million (see table F).
• Since State A’s share is 0.58, this state has earned 58 percent of the $461 million incentive payment pool that Congress is allowing, or $267.2 million ($461 mil. x 0.58) incentive payment for this particular fiscal year.

Table C[3]

If the Paternity Establishment or Support Order Performance Level Is:

Performance Levels

At Least:	But Less Than:	The Applicable Percentage Is:	At Least:	But Less Than:	The Applicable Percentage Is:
80%		100%	64%	65%	74%
79%	80%	98%	63%	64%	73%
78%	79%	96%	62%	63%	72%
77%	78%	94%	61%	62%	71%
76%	77%	92%	60%	61%	70%
75%	76%	90%	59%	60%	69%
74%	75%	88%	58%	59%	68%
73%	74%	86%	57%	58%	67%
72%	73%	84%	56%	57%	66%
71%	72%	82%	55%	56%	65%
70%	71%	80%	54%	55%	64%
69%	70%	79%	53%	54%	63%
68%	69%	78%	52%	53%	62%
67%	68%	77%	51%	52%	61%
66%	67%	76%	50%	51%	60%
65%	66%	75%	0%	50%	0%

Table D[4]

If the Current Collections or Arrearage Collections Performance Level Is:

Performance Levels

At Least:	But Less Than:	The Applicable Percentage Is:	At Least:	But Less Than:	The Applicable Percentage Is:
80%		100%	59%	60%	69%
79%	80%	98%	58%	59%	68%
78%	79%	96%	57%	58%	67%
77%	78%	94%	56%	57%	66%
76%	77%	92%	55%	56%	65%
75%	76%	90%	54%	55%	64%
74%	75%	88%	53%	54%	63%
73%	74%	86%	52%	53%	62%
72%	73%	84%	51%	52%	61%
71%	72%	82%	50%	51%	60%
70%	71%	80%	49%	50%	59%
69%	70%	79%	48%	49%	58%
68%	69%	78%	47%	48%	57%
67%	68%	77%	46%	47%	56%
66%	67%	76%	45%	46%	55%
65%	66%	75%	44%	45%	54%
64%	65%	74%	43%	55%	53%
63%	64%	73%	42%	43%	52%
62%	63%	72%	41%	42%	51%
61%	62%	71%	40%	41%	50%
60%	61%	70%	0%	40%	0%

Table E[5]

If the Cost-Effectiveness Performance Level Is:

Cost-Effectiveness Performance Levels

At Least:	But Less Than:	The Applicable Percentage Is:
5.00		100%
4.50	4.99	90%
4.00	4.50	80%
3.50	4.00	70%
3.00	3.50	60%
2.50	3.00	50%
2.00	2.50	40%
0.00	2.00	0%

Table F

Mandated Incentive Pool Payment, FY 2000-2008

Mandated Incentive Pool Payment, FY 2000-2008
The incentive payment pool is: $422,000,000 for fiscal year 2000 $429,000,000 for fiscal year 2001 $450,000,000 for fiscal year 2002 $461,000,000 for fiscal year 2003 $454,000,000 for fiscal year 2004 $446,000,000 for fiscal year 2005 $458,000,000 for fiscal year 2006 $471,000,000 for fiscal year 2007 $483,000,000 for fiscal year 2008

For each fiscal year following fiscal year 2008, the incentive payment pool will be multiplied by the percentage increase in the CPI between the two preceding years. For example, for fiscal year 2009, if the CPI increases by one percent between fiscal years 2007 and 2008, then the incentive pool for fiscal year 2009 would be a one percent increase over the $483,000,000 incentive payment pool for fiscal year 2008, or $487,830,000.

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[1]Because the measure has less weight.

[2]Because the measure has less weight.

[3]Use this table to determine the maximum incentive levels for the paternity establishment and support order performance measures.

[4]Use this table to determine the maximum incentive levels for the current and arrearage support collections performance measures.

[5]Use this table to determine the maximum incentive level for the cost-effectiveness performance measure.

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