Continuously serving Kosciusko County since 1854
Under current Indiana law, Indiana will lose $15 million of federal child support reimbursement if the state does not comply with a recently passed federal law.
The Child Support Performance and Incentive Act recently passed the U.S. House of Representatives in a 414-1 vote. The purpose of the act is to improve the efficiency of collecting child support.
In fiscal 1996, Indiana was expected to collect $746 million in child support due, but the state only received $155 million, well below the national average of 51 percent. The previous year, Indiana collected only $47 million out of $1.5 billion due.
The act is supposed to improve the nation's child support system by forcing states to implement computerized systems and by centralizing the collection and disbursement of child support payments.
Indiana is one of 16 states that currently has no statewide automated data system.
If Indiana does not comply, it will receive a 4 percent penalty totaling $600,000 and lose the $15 million funding. But if it comes into compliance before October 1, the penalty will only be 1 percent, $154,000, and the funding will be issued. The reason for the penalty is due to the fact Indiana had missed the previous deadline in 1997.
Indiana has 26 of its 92 counties fully integrated into the statewide system.
Kosciusko County is one of the 66 not currently fully integrated. While the prosecutor's office is in compliance, the county clerk's office is not. The reason for the delay is because of a faulty centralized collection system developed by a contractor for the state, the clerk's office said.
According to the governor's office, Indiana state officials have been working with county clerks and prosecutors in seeking an exemption from the centralized collection and disbursement mandate.
An exemption is currently allowed by federal law, enabling Indiana to continue a locally based system of collections and disbursement, while still meeting the statutory requirement to provide a centralized location to which employers are required to send child support wage withholding payments.
