This is a printer friendly version of an article from
www.goupstate.com
To print this article open the file menu and choose
Print.
Back
Article published Nov 5, 2003
Washington penalizes South Carolina despite its
efficiency
South Carolina's congressional delegation should
convince federal officials to give the state a waiver or some similar
consideration on a rule that is costing the state millions of dollars in federal
funding.Washington requires states to have a computerized system to track child
support payments linking the state Department of Social Services with the clerks
of court offices in the counties.In 1994, the state contracted with Unisys Corp.
to implement such a system by 1995. The system was never developed, and the
dispute went to court. The state won a $17 million settlement from Unisys.But
because the system was not implemented by 1997, as federal rules require, the
state has lost $20 million in federal money and will lose another $49 million in
penalties by 2007.But creating and implementing such a system will cost the
state $27 million at a time when state budgets are being cut.It will be
difficult for the state to pull itself out of this position. Federal officials
should recognize the situation and give the state some leeway.There should be
some consideration for the state's good faith in contracting for a system and
being let down by its contractor.And there should be some consideration for the
state's performance in collecting child support payments. After all, the
government required states to establish such systems in order to increase the
efficiency of collecting child support payments.Despite the lack of a
centralized system, South Carolina is ranked 17th in the nation in collection of
child support. Thirty-six states don't collect child support as well as South
Carolina does. And 33 of those states have centralized computer systems to track
the payments.Clearly, because the state has triedto comply with the federal rule
and be-cause it is performing well in collectingthe payments, it should be given
someconsideration in levying the penalties that are draining the state of the
resources it needs.If the government suspended the penalties, the state could
use the money to establish the system required and further enhance its already
good performance.The state's congressional delegation should take up this cause
and convince federal regulators or, if necessary, pass legislation to get the
state the consideration it needs.