ND report on child support collections for 2005:
Total dollars collected $62,992,073
Welfare assisted 2,262,688
Former assisted 23,229,931
Medicaid never assisted 21,853,573
Never assisted 15,645,881
Number of children served 35,564
The following is from the Child Support Enforcement with an explanation of how incentive payments (rewards to states for collecting child support)
are determined. It is worth a lot of money for a state to establish paternity, child support orders, and to collect child support. It is extremely important to include non welfare families in the system because they have higher child support orders, thus increasing the total dollars collected.
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 0.754 times 0.70) plus
$30.0 million collections base for cost-effectiveness ($50 million times 0.755 times 0.80) equals
Resulting in a maximum incentive base amount of $184.75 million for State A.
Table A