ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS
Subcommittee on Human Resources

FOR IMMEDIATE RELEASE, Contact: (202) 225-1025
September 3, 1997
No. HR-7


Shaw Announces Hearing on Child Support System Improvements

Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Human Resources of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on the Administration's proposal for a reformed child support incentives system and on the progress of States in meeting the child support automatic data processing requirements of the 1988 Family Support Act. The hearing will take place on Wednesday, September 10, 1997, in room B-318 of the Rayburn House Office Building, beginning at 10:00 a.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include representatives from the Administration, State child support program directors, child advocacy groups, and private companies participating in child support enforcement programs. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

In each of the States and territories, the child support enforcement program is financed by three streams of money: Federal reimbursement of 66 percent of all valid State expenditures on the State child support program; a share of the child support collections in welfare cases; and incentive payments of up to 10 percent of collections.

For many years, critics have argued that Federal incentive payments, which now have reached nearly $500 million per year, do not effectively reward high performance by States. The biggest perceived flaw in the payment system is that States receive Federal payments of at least 6 percent of collections regardless of their program's efficiency. Thus, a State that spends $1 million dollars to collect $1 million dollars would still receive an incentive payment of $60,000.

The extensive amendments to the child support program contained in last year's welfare reform legislation (P.L. 104-193) required the Secretary of the Department of Health and Human Services (HHS) to study the incentive system and to make recommendations for reform of the system. Based on testimony received at the Subcommittee's March 20, 1997, hearing on the Administration's report (which was completed in February 1997) and on subsequent discussions with individuals and groups interested in child support, the Subcommittee is preparing to consider legislation in this area. Witnesses have been asked to comment on potential legislation and related issues.

The hearing will also present an opportunity for HHS to update the Subcommittee on how many States are expected to meet the October 1, 1997, deadline for implementing the automatic data processing systems required by prior Federal legislation.

In announcing the hearing, Chairman Shaw stated: "There is almost universal agreement that the current child support incentive system is inadequate. Thanks to the bipartisan agreement we now have on the outlines of a new incentive system, we have a good chance to enact legislation this year that will greatly strengthen our nation's child support system.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Any person or organization wishing to submit a written statement for the printed record of the hearing should submit at least six (6) single-space legal-size copies of their statement, along with an IBM compatible 3.5-inch diskette in ASCII DOS Text or WordPerfect 5.1 format only, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, September 16, 1997, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Human Resources office, room B-317 Rayburn House Office Building, at least one hour before the hearing begins.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All statements and any accompanying exhibits for printing must be typed in single space on legal-size paper and may not exceed a total of 10 pages including attachments. At the same time written statements are submitted to the Committee, witnesses are now requested to submit their statements on an IBM compatible 3.5-inch diskette in ASCII DOS Text or WordPerfect 5.1 format. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.

4. A supplemental sheet must accompany each statement listing the name, full address, a telephone number where the witness or the designated representative may be reached and a topical outline or summary of the comments and recommendations in the full statement. This supplemental sheet will not be included in the printed record.

The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press and the public during the course of a public hearing may be submitted in other forms.

Symbol to Show Committee Seeks to Assist Persons with Disabilities at the Committee's facilities.The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.