Child Support Enforcement

States and Localities Move to Privatized Services Gao ID: HEHS-96-43FS November 20, 1995

Facing budgetary and staffing constraints and increasing federal performance standards, state child support enforcement programs are struggling to serve their ever-increasing caseloads. As states strive to improve their services to the public, many are turning to the private sector to augment their child support enforcement programs. Although states continue to expand these public and private partnerships, little is known nationally about such efforts. This fact sheet discusses (1) the extent of, rationale for, and perceived advantages and disadvantages of privatizing child support functions; (2) the terms of these contracts; (3) the legal issues surrounding privatization; and (4) what is known about the cost-effectiveness of these efforts.

GAO found that: (1) one or more child support services are privatized in 20 states and at the local office level in 18 states; (2) there are 21 full-service contracts for child support services and half of these are served by one major contractor; (3) four major contractors provide most of the services for 40 other collection and location service contracts; and (4) there are nine contracts for payment processing services and eight contracts for location services.



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