Looming federal cuts threaten future of Child Support program that distributed $1.4 billion to Michigan families in 2006

Michigan Department of Human Services, May 14, 2007

LANSING - Even as the Michigan Child Support Program increased collections by $18 million to help keep children out of poverty in 2006, looming federal cuts threaten to decrease the programs effectiveness by billions of dollars over the next decade.

In last year's federal Deficit Reduction Act, the federal government cut more than $50 million per year in administrative funding to the state and counties. According to the Congressional Budget Office, this will reduce collections in Michigan by $300 million in the first five years and $1.2 billion in ten years. Governor Jennifer M. Granholm's proposed budget restores this much-needed funding for the state and counties.

"We are proud of what this program does to keep Michigan's children out of poverty," DHS Director Marianne Udow said. "For this reason, the federal cuts that go into effect on October 1, 2007, are a grave concern and a threat to families in Michigan."

In fiscal year 2006, Michigan child support workers distributed approximately $1.4 billion in child support. The program sent $1.27 billion directly to Michigan families, provided $29 million in medical support to children and reimbursed the federal and state governments $95 million for public assistance provided to families. More than $396 million in past due support was collected and distributed to families.