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Because numbers are often rounded, their sums may not correspond to the totals shown. All years in this paper are calendar years unless otherwise noted. The terminology used in this paper--mothers who have awards--is consistent with the terminology of "mothers supposed to receive child support" that is used by the Bureau of the Census in its publications. TRIM2 stands for the Transfer Income Model, Version 2. |
Beginning with the establishment of the Child Support Enforcement Program two decades ago, federal and state governments have played an important role in helping custodial parents secure child support. However, because many families do not receive the child support to which they are entitled, a number of proposals have been made to improve the child support system. At the request of Congressman Harold E. Ford and of Senator Rick Santorum when they were Chairman and Ranking Minority Member, respectively, of the Subcommittee on Human Resources of the Committee on Ways and Means, this paper examines the changing child support system and the causes of that change. In accordance with the Congressional Budget Office's (CBO's) mandate to provide objective and impartial analysis, this study contains no recommendations.
Janice Peskin of CBO's Health and Human Resources Division prepared this paper under the direction of Nancy M. Gordon and Ralph E. Smith. The estimates based on the TRIM2 microsimulation model could not have been made without the work of a number of researchers at the Urban Institute, including Sandra Clark, Daniel Dowhan, Linda Giannarelli, Elaine Sorensen, and Laura Wheaton. Don Oellerich generously provided data collected by the Bureau of the Census. John Tapogna of CBO made major contributions throughout the project. In addition, many people made valuable comments on earlier drafts, including Gaile Mailer, Daniel Mont, Jay Noell, Carmen Solomon, Freya Sonenstein, and Robert G. Williams. Cori Uccello provided research assistance, Eric Guille provided computer assistance, and Julia Jacobsen prepared the figures.
Sherwood Kohn edited the manuscript, and Chris Spoor provided editorial
assistance during production. Sharon Corbin-Jallow typed the several versions
and prepared the layout of the final manuscript.
Robert D. Reischauer
Director
February 1995
SUMMARY
I - INTRODUCTION
II - THE CHANGING ENVIRONMENT: A LOOK BACKWARD
III - THE CHILD SUPPORT ENVIRONMENT IN 1995: THE SETTING FOR FURTHER CHANGE
APPENDIXES
A - The TRIM2 Model and Its Simulation of Child Support
B - Basis of the Projections to 1995
C - Studies of the Effects of Immediate Wage Withholding
D - Data Supporting the Analysis
| FIGURES | |
| S-l. | Child Support Outcomes: Award and Payment Rates, 1981-1989 |
| S-2. | Child Support Outcomes: Award and Payment Amounts, 1981-1989 |
| S-3. | Child Support Enforcement Program: Indicators of Effectiveness |
| 1. | Mothers Eligible for Child Support From Noncustodial Fathers, by Marital Status, Selected Years 1982-1990 |
| 2. | Number and Rates of Divorces and Births to Unmarried Women, 1980-1992 |
| 3. | Distribution of First Births Among Unmarried Women, by Age, 1980 and 1991 |
| 4. | Women Who Have Child Support Awards as a Percentage of Those Who Are Eligible, by Marital Status, Selected Years 1981-1989 |
| 5. | Average Amount of Child Support Due To Mothers, for Those Who Have Awards, by Marital Status, Selected Years 1981-1989 |
| 6. | Women Who Receive Child Support Payments as a Percentage of Those Who Have Awards, by Marital Status, Selected Years 1981-1989 |
| 7. | Women Who Receive Full Amount of Child Support Due as a Percentage of Those Who Receive Some Child Support, by Marital Status, Selected Years 1981-1989 |
| 8. | Average Amount of Child Support for Mothers Who Receive Child Support, by Marital Status, Selected Years, 1981-1989 |
| 9. | Composition of Caseloads in the Child Support Enforcement Program, 1980-1993 |
| 10. | Spending and Net Savings or Costs in the Child Support Enforcement Program, 1980-1993 |
| 11. | Indicators of the Effectiveness of the Child Support Enforcement Program, 1980-1993 |
| 12. | Collection Rates in the Child Support Enforcement Program, 1986-1993 |
| 13. | Outcomes in Paternity Cases |
| 14. | Projected Number of Women Eligible for Child Support from Noncustodial Fathers in 1996 |
| 15. | Projected Proportion of Women Who Have Awards and Receive Child Support in 1995 |
| 16. | Projected Average Amounts of Child Support Due and Received in 1995 |
| TABLES | |
| S-l. | Child Support By Marital Status, 1989 and 1995 |
| 1. | Incentive Payment Formula |
| 2. | Financing of the Child Support Enforcement Program, Fiscal Year 1993 |
| 3. | Variation in the Effectiveness of the Child Support Enforcement Program Among States, Fiscal Year 1993 |
| 4. | Child Support by Marital Status, 1989 and 1995 |
| 5. | Projected Change In Amounts of Child Support Due and Collected, 1989 to 1995 |
| 6. | Estimated Effects of Legislative Changes on Child Support Amounts Due and Collected, 1995 |
| A-1. | Comparison of TRIM2 Simulation and April Current Population Survey-Child Support Supplement Estimates, 1989 |
| B-l. | Projected Changes in Child Support, 1989 to 1995, by Source of Change |
| B-2. | Projections of Changes in Child Support Based on Trend Adjustments, 1989 to 1995 |
| B-3. | Projections of Changes in Child Support Based on Legislative Changes, 1989 to 1995 |
| C-1. | Estimates of the Effects of Immediate Wage Withholding on Child Support |
| D-l. | Child Support Outcomes, by Marital Status, 1981-1989 |
The number of children living with only one parent grows with each passing year. In 1993, more than one-quarter of all children under the age of 18 lived with a single parent. For Hispanic children, the rate rose to one-third and for black children to more than one-half. Most of these children--and more living with stepparents--are potential recipients of child support from their noncustodial parents. Because many of these children live in poverty, securing child support for them has become a major policy objective.
During the 1980s and early 1990s, the Congress passed a substantial amount of legislation aimed at strengthening and making more effective the governmental institutions that constitute the child support system. Those institutions--the courts, related administrative bodies, and child support agencies--establish paternity, award child support and set its amount, and enforce payment. In the 103rd Congress, more than 40 bills containing important provisions affecting child support were introduced but only a handful were enacted into law. Modifying the child support system was also a major component of the Administration's welfare reform proposal of 1994.
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