In addition to affecting divorced parents, this bill will impact state agencies, the courts and employers. Since the bill does not exclude those who are sporadically or only partially meeting their obligations prior to application for these adjustments, all of the 44,000 parents currently under payment orders would be eligible. Assuming that 25 percent of the eligible non-custodial parents take advantage of the provisions for twice a year adjustments in child support, the Office of Recovery Services (ORS) would require 5 additional FTE to process the adjustments to the payment orders. As the process becomes more common it is assumed that an additional 25 percent of the non-custodial parents will also ask for this benefit. Costs for annual fiscal impacts to ORS (estimated at $235,500 for the 1st year) can be partially covered (approximately 65%) by Title IV-D Federal Funds. Impacts of any temporary changes in eligibility, for either parent, under State and federal programs cannot be estimated at this time. If only 100 of the obligated non-custodial parents were to challenge payments, credits, accounting, etc. for these adjusted amounts, there would be additional hearings by the court and these hearings would result in more Orders to Show Cause. Estimated impact on the courts for 100 additional hearings and resultant orders would be approximately $11,200 in General Funds. Impact on employers with direct payment programs who will be asked to adjust payroll twice per year for non-custodial parents and any resultant documentation systems employers may have to develop cannot be estimated at this time.

Office of the Legislative Fiscal Analyst

2/12/97 8:51:18 AM

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