The 2020-21 Spending Plan

Human Services

Department of Child Support Services

The spending plan includes $315 million General Fund for the Department of Child Support Services (DCSS) in 2020‑21, a decrease of $26 million (7.6 percent) relative to revised estimates for 2019‑20. In this section, we discuss the budget actions resulting in the overall funding decrease and other budget changes.

Reduces Funding for LCSAs and DCSS. As part of the 2019‑20 budget, local child support agencies (LCSAs) received a General Fund augmentation of $19.1 million. In January, the Governor’s proposed budget included a proposal to increase funding for LCSAs by an additional $19.1 million in 2020‑21. The spending plan reduces funding levels for LCSAs to 2018‑19 budget levels—from $266 million General Fund in 2019‑20 to $247 million General Fund in 2020‑21. As a result, the spending plan (1) eliminates the $19.1 million General Fund augmentation to LCSAs provided in 2019‑20, and (2) withdraws the second $19.1 million General Fund augmentation proposed as a part of the Governor’s January budget. Additionally, the 2020‑21 budget includes an $8.3 million General Fund reduction to state operations funding at DCSS. The majority of this reduction is distributed across the interagency agreement with Judicial Council ($2.4 million General Fund) and DCSS technology procurement contracts ($2.7 million General Fund). (Funding levels for DCSS and LCSAs would have been restored to levels that were initially proposed in the Governor’s January budget if sufficient federal funding was provided by October 15, 2020 to address the state’s overall budget problem. Since no federal funds were provided by the scheduled date, DCSS and LCSA funding levels were not restored.)

Increases Child Support Pass-Through Amount to CalWORKs Families. When a parent applies for the California Work Opportunity and Responsibility to Kids (CalWORKs) program, federal law requires them to sign over the majority of their monthly child support payments to the state. These dollars are used to reimburse the state and federal government for costs associated with providing CalWORKs benefits to the family. However, states can “pass-through” or allow CalWORKs families to keep a portion of the monthly child support payments. The spending plan increases the amount of monthly child support that is passed-through to CalWORKs families to the federal participation limit—from $50 to $100 for a family with one child and $200 for a family with two or more children. (If the state’s pass-through amount exceeded the federal participation limit, it would have to reimburse the federal government for the foregone federal reimbursement dollars above the limit.) This change is expected to take effect no sooner than January 1, 2022 (depending on the completion of necessary automation changes) and is expected to cost the state about $17 million General Fund annually on an ongoing basis.

Implements Supplemental Reporting Language to Increase Legislative Oversight of Child Support. The spending plan includes supplemental reporting language that requires DCSS and Judicial Council, in collaboration with the Child Support Directors Association of California (CSDAC), to provide updates to the Legislature on key components of California’s child support program, including the effectiveness and outcomes associated with (1) order establishment and the modification process, (2) child support guidelines and treatment of ability to pay and level of financial support needed for children, (3) collection rates and accumulation of arrears, (4) local funding and initiatives, and (5) an update on implementation and recommendations for recent quadrennial review and 2016 federal final rule. (Refer to the Supplemental Report of the 2020‑21 Budget Act report for additional information on child support reporting components.) The updates shall occur every three months beginning in August 2020 to July 2021 for a total of four meetings. The meetings may continue after July 2021 if decided between the Legislature, Judicial Council, DCSS, and CSDAC.