Nationally, Michigan ranks among the top states in the collection of child support from absent parents; in 1991 a total of $698 million was collected for both AFDC and non-AFDC families. Only Pennsylvania collected more. We are consistently among the top three states in number of paternities and court orders established for child support payments. Improvements can still be made in the state's system and in the way the federal government addresses child support.

In 1991, support orders were established for only 48 percent of the children in Michigan with an absent parent. Collections were made on only 31 percent of the AFDC cases and 50 percent of non-AFDC cases. A large number of the cases receiving support payments did not receive the full amount due. The documented accumulated arrearage of child support in Michigan is over $2.3 billion. Without child support, many single parents who receive public assistance are not able to achieve self-sufficiency.

Public perception must recognize that child support is an obligation of the parents, and that failure to pay has serious consequences. This applies whether or not the parents are married to each other, or living with their children. The prevailing attitude must be that responsibility goes beyond just financial, but that there is a moral and ethical responsibility as well.

Michigan will take the following steps to promote parental responsibility, strengthen Michigan families, and help assure that children receive the financial and emotional support they require from both parents.

• All dependent children should be included in health insurance plans of their parents, regardless of residence, tax status, or parent's marital status.
  Michigan statute and federal regulations require parents to assume responsibility for health care costs. Many non-custodial parents, ordered by the court to add their children to their coverage, are prevented from doing so when the employer or union denies coverage due to residence or other factors. Employers are urged to cover all children for whom the employee has a legal responsibility.
  The child support agencies must put into place mechanisms to identify those persons with access to health insurance coverage, and to aggressively enforce health insurance orders. In the Great Lakes region, Illinois, Minnesota, Ohio, and Wisconsin have addressed this issue statutorily.

• Michigan should require non-custodial parents to report child support obligations to employers who can begin wage withholding immediately.
  Wage withholding--automatically deducting child support payments from paychecks--is by far the most effective method of collecting child support. Fifty-four percent of collections today are from income withholding.
  Many non-custodial parents, though obligated by law, do not report changes of employment so wage withholding may be adjusted and continue uninterrupted. To address the problem, we propose that a new employee be required to complete a form stating whether or not child support has been ordered. This mandated disclosure would allow the employer to immediately withhold the amount indicated and request verification from the appropriate child-support agency. Failure to disclose would result in a financial penalty.

• Hospitals in Michigan should be required to accept and record paternity acknowledgments as part of the birth registration.
  One of the major factors contributing to children living in poverty and receiving public assistance is the number of single-parent families. During the last decade the number of births to unwed mothers has increased a significant 22 percent.
  The establishment of paternity and child support is an important long-term investment in the welfare of children. In addition, Social Security, military and veterans benefits, and inheritance rights are more easily determined. The child will also have easier access to family medical histories. It is emotionally and psychologically beneficial to a child to know his or her father and know that the father acknowledged the relationship.

• Michigan should require non-custodial parents who are not fulfilling their financial responsibility to participate in alternatives such as completion of high school or G.E.D., community service, or job training.
  A significant number of teen-age parents do not pay child support because they are unemployed or are still in school. These young people should be required to take steps that will enable them to eventually fulfill their financial bligations.
  The Department of Social Services has recently been notified that its application for federal waivers to operate a job training program for unemployed fathers in Kent County has been approved. This is an important first step in helping fathers who are unable to meet their child-support responsibilities.

• Michigan will move aggressively to impose sanctions on custodial parents who receive public assistance and fail to cooperate with child support requirements.
• Michigan will require Friends of the Court to report child support obligations to consumer-reporting agencies at the time the order is established.
  Many parents who fail to meet their obligations to pay support have the financial ability to do so. Many of these parents assume new debts while concealing their child support responsibilities from banks, retailers, and other credit grantors.
  Widespread use of credit is virtually synonymous with the American way of life. As credit grantors evaluate credit applications, the full scope of an applicant's financial obligation should be taken into account, including child support obligations.
  As of last year, Michigan was one of only six states without activity in credit reporting. Those states who have credit reporting have experienced significant increases in collections. Maine reported a 23 percent increase in monthly collections. This translates to significant revenue. Credit reporting also enhances the ability to locate absent parents. In Delaware use of this information led to a sixty-eight percent increase in the rate of success.
• Michigan will also take steps to improve its child support system through the following procedures.
  • Streamline the establishment of child support orders by: encouraging the courts to use an expedited administrative process rather than a judicial process (except in contested situations); examine the current guidelines that are used to set support amounts so that the amounts keep up with changes in parents' income, and are simple to determine.
  • Seek a state statute to allow denying or revoking of professional, business, or trade licenses for persons with child-support arrearages or who do not have an approved plan.
  • Seek a state statute to allow withholding of vehicle registration upon notice from a Friend of the Court that a non-custodial parent is delinquent in meeting their child support obligation.
  • Require by state statute, the inclusion of social security numbers of the application and renewal for Michigan driver's license and license plate tabs. This is a valuable tool for locating parents and enforcing payment. Twenty other states have social security numbers on drivers licenses.
  • Utilize the authority and broad collection powers granted to the Michigan Department of Treasury to collect arrearages owed to recipients of AFDC. When payments are not made, they become state debts. Payments collected for persons receiving AFDC are sent to the state as reimbursement for public assistance granted.
  • Examine the enhancement of collection of child-support payments through private collection agencies.