California keeps millions in child support while parents drown in debt

BY KATE CIMINI MAY 3, 2021UPDATED MAY 28, 2021 Stacy Estes in front of his home in Sacramento on

April 7, 2021. Photo by Anne Wernikoff, CalMatters

source

https://calmatters.org/projects/california-keeps-millions-in-child-support-while-parents-drown-in-debt/

Disproportionate collections

While the federal Office of Child Support Enforcement shows California is average in the amount of child support it collects, Turetsky calculated the state retained 14% of total collections, compared to a national average of 3.8%, meaning it retains a disproportionately large share as state revenue.

Share of child support retained by states in 2019

PART 1

California keeps millions in child support while parents drown in debt

Welfare advocates say California places low-income and minority parents in insurmountable debt by garnishing child support payments and imposing high interest rates when they fall behind on payments, keeping a larger-than-average portion for itself. The director of the agency overseeing child support says state changes would require legislative action, but meaningful changes have failed to gain traction at the Capitol.

NEXT: PART 2

Stimulus, unemployment checks help child support debt collection hit new high

During the height of the pandemic, the state clawed stimulus and unemployment checks from parents who owe child support debt to the government. The Newsom administration put a stop to the practice by the time the second stimulus checks went out, but California still retained a record $430 million in 2020.

PART 3

Legislature looks to halt child support debt collections — only for some

Lawmakers propose to stop collecting child support debt owed to the government in cases where a parent’s only source of income comes from certain cash assistance programs. But advocates had asked the Legislature to go farther by forgiving old, uncollectible debt and to stop imposing a 10% interest.