Maybe We Should Change the Law to Call It "State Support" Instead of "Child Support"
As a condition of receiving cash assistance, very low-income families must sign over their rights to child support to the state. The state is then responsible for collecting the child support (so far so good). The problem is, when the state collects the child support NOT ONE PENNY OF THE CHILD SUPPORT COLLECTED GETS PASSED ON TO THE KIDS FOR WHOM IT IS INTENDED. Rather, the state keeps it all (there is no twist, that's really what happens).
It wasn’t always this way. Before 1997, the first $50 of child support collected was passed on to the family. The state kept the rest. But after federal welfare reform passed in 1996 states were no longer obligated to pass through that $50. Maryland saw the opportunity to save some money and changed the law so that the state could keep it all.
We last wrote about this in 2000. At that time, we estimated that passing through the first $100 of child support collected on behalf of families that get cash assistance would cost the state $4 million. Which of course is real money. But who do you think needs it more: the state, or very low-income families with children?
It gets our attention once again because earlier this year lawmakers in the District of Columbia expanded their "child support pass through." Now, the first $150 per month of child support collected on behalf of families who also receive cash assistance is actually provided to the family.
Connecting some dots, we earlier wrote about how little Maryland spends on cash assistance and related supports for very low income families. We game the budget to a) meet the federal spending requirements and b) spend as little money as possible.
Maryland’s choice to keep all of the child support that it collects for very low income children (which usually comes from a very low-income parent) is one consequence of that manipulation.
We've got a $270 million surplus in the budget for the coming fiscal year. How do you feel knowing that a small portion of that surplus comes from child support payments collected from one low-income parent to help their very low-income kids?
Does Maryland’s choice reflect your values and priorities?

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