ARIZONA STATE SENATE

RESEARCH STAFF

BARBARA GUENTHER

LEGISLATIVE RESEARCH ANALYST

FAMILY SERVICES COMMITTEE

Telephone: (602) 542-3171

Facsimile: (602) 542-7833

TO: MEMBERS OF THE SENATE

APPROPRIATIONS COMMITTEE

DATE: April 4, 2001

SUBJECT: Strike Everything Amendment to H.B. 2445

Purpose

Appropriates approximately $1.5 million in each of FY 2001-2002 and FY 2002-2003 from the state general fund to the Department of Economic Security (DES) for distribution to six counties providing child support enforcement services.

Background

The DES Division of Child Support Enforcement is the administering entity for the federal IV-D child support enforcement program. In Arizona, counties have the first right to provide program services, such as establishing paternity and enforcing child support orders. Six counties have exercised that right through their county attorney offices. The Office of the Attorney General operates the program in seven counties, and DES contracts with a private company to provide program services for the remaining two counties.

Approximately 73 percent of program revenues are federal funds, 21 percent are state funds, 3 percent are county funds and 1 percent comes from handling and processing fees. During FY 1999-2000, the six counties providing child support enforcement services contributed an estimated $2.2 million in local funds to help pay for program costs not covered by federal and state dollars.

The strike-everything amendment states that the Legislature intends for the specified counties to refrain from taxing citizens for the child support programs in addition to the state taxes the citizens pay, but there is no prohibition on county taxation for child support enforcement purposes.

The strike-everything amendment to H.B. 2445 appropriates approximately $1.5 million from the state general fund in each of FY 2001-2002 and FY 2002-2003 to DES for distribution to the six specified counties for local child support enforcement programs.

Provisions

1. Appropriates approximately $1.5 million from the state general fund in each of FY 2001-2002 and FY 2002-2003 to DES for distribution to the six counties providing child support enforcement services.

2. Specifies the following distribution:

Pima County $900,551

Pinal County 339,877

Gila County 80,696

Cochise County 86,113

Navajo County 44,406

La Paz County 58,620

3. Specifies the purpose of the appropriation is that the six counties not tax citizens for these programs.

4. Exempts the appropriations from lapsing.

5. Provides for a general effective date.

BG/ac