2012 Special Session I

Budget Amendments - HB1300 (Conference Report)

Increase TANF Collections from Child Support

Item 329.10 #1c

Item 329.10 #1c

First Year - FY2011 Second Year - FY2012
Health And Human Resources
Social Services, Department of FY2011 $0 FY2012 ($2,500,000) GF
FY2011 $0 FY2012 $2,500,000 NGF

Page 127, strike line 29 and insert:

"Child Support Enforcement Services (46300)764,349,040763,748,430
Support Enforcement and Collection Services (46301)94,150,86993,550,259
Public Assistance Child Support Payments (46302)11,000,00011,000,000
Non-Public Assistance Child Support Payments (46303)659,198,171659,198,171
Fund Sources: General 7,441,311
7,511,730 9,941,311
Special 703,133,306
702,013,497 700,633,306
Federal Trust54,823,81353,173,813

Authority: Title 20, Chapters 3.1, 4.1, 5, 5.3, and 6; Title 63.2, Chapter 13, Code of Virginia; P.L. 104-193, as amended; P.L. 105-200, P.L. 105-33, P.L. 106-113, Federal Code.
A. Any net revenue from child support enforcement collections, after all disbursements are made in accordance with state and federal statutes and regulations, and after the state's share of the cost of administering the program is paid, shall be estimated and deposited into the general fund by June 30 of the fiscal year in which it is collected. Any additional moneys determined to be available upon final determination of a fiscal year's costs of administering the program shall be deposited to the general fund by September 1 of the subsequent fiscal year in which it is collected.
B. In determining eligibility and amounts for cash assistance, pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193, the department shall continue to disregard up to $100 per month in child support payments and return to recipients of cash assistance up to $100 per month in child support payments collected on their behalf.
C. The state share of amounts disbursed to recipients of cash assistance pursuant to paragraph B of this item shall be considered part of the Commonwealth's required Maintenance of Effort spending for the federal Temporary Assistance for Needy Families program established by the Social Security Act.
D. The department shall expand collections of child support payments through contracts with private vendors. However, the Department of Social Services and the Office of the Attorney General shall not contract with any private collection agency, private attorney, or other private entity for any child support enforcement activity until the State Board of Social Services has made a written determination that the activity shall be performed under a proposed contract at a lower cost than if performed by employees of the Commonwealth.
E. The Division of Child Support Enforcement, in cooperation with the Department of Medical Assistance Services, shall identify cases for which there is a medical support order requiring a noncustodial parent to contribute to the medical cost of caring for a child who is enrolled in the Medicaid or Family Access to Medical Insurance Security (FAMIS) Programs. Once identified, the division shall work with the Department of Medical Assistance Services to take appropriate enforcement actions to obtain medical support or repayments for the Medicaid program."

(This amendment reduces $2.5 million from the general fund and replaces it with $2.5 million from nongeneral funds the second year to reflect rising payments from retained Temporary Assistance to Needy Families (TANF) collections that are used to provide resources for child support enforcement. The introduced budget assumes general fund savings of $2.5 million in fiscal year 2013 and fiscal year 2014 based on an increase in retained TANF collections; those savings should also be reflected in fiscal year 2012. TANF collections in excess of $100 each month are returned to the child support program if the family is receiving cash assistance. This amendment will replace language in Item 329, Chapter 890, Acts of Assembly of 2011, during enrolling of House Bill 1300.)