Committee members did not object to this change, but it was noted that the General Assembly declined to enact a similar increase. Committee discussion centered around the lack of consistency between income deductions allowed by the IRS and the deductions allowed by various assistance programs. Members noted that capital depreciation was not allowed as a deduction for assistance programs even though such deductions are allowed under federal and state tax law. This decision particularly impacts self-employed families who must make substantial capital investments which substantially reduce disposable income. Members suggested the issue of deductibility would be referred to the Legislature for additional review when it is adopted in final form.
Further review is likely when adopted in final form.
The department has completed action on a detailed package of rules outlining the Collection Services Center. This center is the administrative entity responsible for the disbursement of court-ordered child support. Under the rule, payments are credited for the month in which the money is received by the Collection Services Center. Concern was expressed at the meeting that payments should be credited for the month in which the payment is deducted from the obligor's earnings. The problem is that some employers who deduct child support do not immediately forward that money to the center.