What Deficit Hawks Won't Tell You

There's a lot of what passes for high-minded debate right now between self-described fiscal conservatives and those who think recessions are the moments for which increased government spending is made.

Despite the fact that, in general, even the poorest children in the United States are spared from work and most taxes, the clearest answer to that economic conundrum actually lies in the lives of children. When it comes to children, a public penny saved doesn't always amount to a penny gained.

In May, the Poverty Institute and the Women's Fund of Rhode Island released a study (pdf) that highlights the real influence of government spending during tough times.

People who work to collect unpaid child support around the country are worried. The number of noncustodial parents asking courts to slash their child support payments is up while collections and on-time payments are down.

For the first time since these agencies and officials gained a full collectors' arsenal in the 1990s — the ability to pull driver's and professional licenses, passports, and even tax returns and lottery winnings from noncustodial parents who don't pay — trade groups like the National Child Support Enforcement Association started talking about collecting in the age of recession.

And parents aren't alone. Money troubles have forced about 45 states to cut social services. Faced with a $379 million get-me-an-Ambien-please budget deficit, Rhode Island opted to slash jobs. Among those who lost their jobs were case workers who help single parents secure child support orders and collect unpaid child support.

Rhode Island's child support collections were already suffering before the job cuts. Around the country, about 79 percent of children eligible to receive child support have a standing court order entered on their behalf that helps to facilitate the process. But in Rhode Island, just 69 percent of the state's child support cases have reached this critical point. Now, the number of cases handled by each worker has grown from about 485 in 2006 to just under 700 in late 2009.

What's your guess on the 2010 figures?

We won't find out until early next year (governments run on fiscal, not calendar, years). But, it already looks like the job cuts were pennywise and pound foolish. The federal government covers 60 percent of the administrative costs associated with child support collection and for every dollar the state spends collecting child support, it tends to bring in about $5.65 in child support and private medical coverage benefits for kids, according to the Poverty Institute report.

Plus, there's ample evidence that children living in households where child support is regularly received are less likely to live in poverty, less likely to receive public assistance and more likely to live with working mothers even when cash public assistance is being paid.

So, the next time you hear someone talk about the deficit or the need for fiscal restraint, find out what they really want to cut and what might really be gained. Sometimes budget cuts wind up functioning a lot like a shell game.

Photo credit: wolfpix