Also, when court orders are established, if there is an arrearage of more than 30 days and the amount is in excess of one hundred dollars, the case would be referred to the department. Currently, the department has approximately 500,000 cases in its inventory, and staff estimates there are approximately an additional 400,000 arrearage cases currently being managed in the counties. The department receives approximately 190,000 cases per year and staff expects the number of cases to increase. After sending an original notice out, the department holds the case if there is an income tax obligation owed. The department takes no collection actions if there is an income tax owed.
Staff culls the case and sends it back to the county.
Under the new legislation, staff's assumption is that the bulk of these 400,000 cases would shift to the department for a more complete collection process, resulting in case inventories of about 900,000. Staff expects significant growth per year as more arrearage cases are identified. Mr. Vranna stressed that it would be the department's responsibility to manage accounts receivable, not do case management. Mr. Vranna confirmed this interpretation. Mr. Goldberg stated that the counties would still have the responsibility for the overall case, key policy decisions would be made by the counties, and only the accounts receivable decisions would be made by the department.