4008.2 Child Support Supplemental Payment

States which used fill the gap budgeting on July 1, 1975, must ensure that families do not experience a net loss of income due to the state retaining child support paid by absent parents. Delaware used fill the gap budgeting on July 1, 1975. This section details the calculations required to ensure that families do not experience a net loss of income based on the state retaining child support paid by absent parents. The child support supplemental payment is TANF and State funded. It is not the actual child support that is retained by the state. Recipients are eligible for this payment if the TANF case is currently open and current child support (not arrears) was collected in the previous month by DCSE. We will use four terms in this section which have special meaning: Countable Income - Net income from all sources other than child support plus countable child support. Countable Child Support - the support collected on the current month's support obligation minus an amount not to exceed the first $50 collected. The first $50 of child support collected is commonly referred to as the "child support disregard amount." Disposable Income - the sum of the grant and the countable income used in determining the 1975 grant. Other Net Income - Net income from all sources other than child support. STEP 1: DETERMINE DISPOSABLE INCOME USING 1975 BENEFIT PROCEDURES A. Standard of Need -Countable Income Deficit B. Deficit x 50% of the Deficit 1975 Grant Amount Capped by payment standard C. Other Net Income Countable Child Support $50.00 Child Support Disregard +1975 Grant 1975 Disposable Income STEP 2: DETERMINE DISPOSABLE INCOME USING CURRENT BENEFIT PROCEDURES A. Standard of Need -Countable Income Deficit B. Deficit x 50% of the Deficit Current Grant Amount Capped by payment standard C. Other Net Income Countable Child Support $50.00 Child Support Disregard Current Disposable Income STEP 3: CALCULATE CHILD SUPPORT SUPPLEMENTAL PAYMENT 1975 Disposable Income, Step 1 - Current Disposable Income, Step 2 Child Support supplemental payment EXAMPLE: STANDARD OF NEED $939 TOTAL CHILD SUPPORT $500 COUNTABLE CHILD SUPPORT $450 OTHER NET INCOME $200 COUNTABLE INCOME $650 $500 Total Child Support -$50 Child Suppor Disregard $450 Countable Child Support -$200 Other Net Income $650 Countable Income STEP 1: DETERMINE DISPOSABLE INCOME USING 1975 BENEFIT PROCEDURES A. $939 Standard of Need -$650 Countable Income $289 Deficit B. $136 Deficit x .5 50% of the Deficit $144 1975 Grant C. $200 Other Net Income $450 Countable Child Support $ 50 Child Support Disregard +$144 1975 Grant $844 1975 Disposable Income STEP 2: DETERMINE DISPOSABLE INCOME USING CURRENT BENEFIT PROCEDURES A. $939 Standard of Need -$200 Other Net Income $739 B. $739 Deficit x 5 50% of the Deficit $369 Current Grant or Current Grant will be this number or maximum grant amount (whichever is less). C. $200 Other Net Income $389 Current Grant +$50 Child Support Disregard $588 Current Disposable Income STEP 3: CALCULATE CHILD SUPPORT SUPPLEMENTAL PAYMENT $844 1975 Disposable Income -$588 Current Disposable Income $256 Child Support Supplemental Payment