NEBRASKA - State Will Escape $8 Million in Penalties for Failing to Bring Child Support Computer System in Line with Federal Requirements

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Title: State avoids child-support computer penalty

BY MARTHA STODDARD Lincoln Journal Star

Nebraska will escape $8 million in federal penalties for failing to bring its child support computer system in line with federal rules by September, Lt. Gov. Dave Maurstad announced Friday.

But the state still is expected to have the system going by Oct. 1, 2001, along with a controversial centralized system for collecting and disbursing child support checks.

"That's the law," Maurstad said of the centralized system. "We're not thumbing our nose at the federal government, so to speak. We are going to do this." Until late last month, officials with the state Health and Human Services System expected to meet an Oct. 1 deadline for having the centralized system in place.

Those hopes were dashed when an analysis concluded the computer system ---- needed to record incoming support checks and to direct outgoing payments ---- would not be ready. The new estimate for getting the computer system ready is September 2001.

The delay put Nebraska in jeopardy of getting slapped with a $3 million federal penalty this year and another $5 million to $6 million next year.

But Maurstad managed to convince federal officials during a trip to Washington, D.C., this week to waive the penalties.

He met Tuesday and Wednesday with Judge David Ross, commissioner of the Office of Child Support Enforcement, and Donna Bonar, acting commissioner for automation and program operations. Both are with the U.S. Department of Health and Human Services.

The officials agreed Nebraska has been meeting the spirit of the law -- getting child support checks distributed correctly -- even if its computer system doesn't meet the letter of the law.

Based on that finding, they agreed to grant conditional approval of the state's computer system, Maurstad said. Conditional approval means the state will avoid the penalty of losing $8 million worth of federal aid for child support collection over the next two years.

"They are now acknowledging that Nebraska is distributing money correctly," Maurstad said. "What's more important: getting results for children and families or being in compliance?"

Martha Stoddard can be reached at 473-7251 or mstoddard@journalstar.com.

Copyright ) 2000, Lincoln Journal Star

http://www.journalstar.com/stories/neb/sto2

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-- (Dee360Degree@aol.com), April 01, 2000


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