child support schedule workgroup points of consensus and issues for discussion revised after the...

Child Support Schedule Workgroup

• Points of Consensus

and

• Issues for Discussion

Revised after the meeting onNovember 14, 2008

Self Support Reserve

• CONSENSUS: SSR should be 125% of the Federal Poverty Level


CONSENSUS: Statute should not provide a numerical value for 125% of FPL, but the Worksheet instructions should suggest the website to find FPL info, and tell how to go from annual FPL to 125% monthly FPL


CONSENSUS: Should apply to NCP obligation only


• When applying SSR to NCP, the court should take into account the impact on CP household

• Suggested statutory language: (to be added to RCW 26.19.065(2))– “when it would be unjust or inappropriate to apply the

self support reserve limitation after considering the best interests of the child and the circumstances of each parent.”

45% Limitation

• NO CONSENSUS ITEMS

45% Limitation

CONSENSUS: Amend RCW 26.19.065(1) to say: (1) Limit at forty-five percent of a parent's net income. Neither parent's total child support obligation owed for all his or her biological and legal children may exceed forty-five percent of net income except for good cause shown.

45% Limitation

• Each child should be entitled to an equal (pro-rata) share of the 45%

45% Limitation

• The court can only apply the 45% limitation to the case in front of the court now, but children in that case should get their pro-rata share of the 45%

45% Limitation

• When good cause is shown, the court may apply a pro-rata share of a bigger percentage of NCP income

45% LimitationCONSENSUS: We should retain good

cause for the court to exceed the 45% limitation, and the current language re good cause [RCW 26.19.065(1)] should not be changed

--but should we add language re best interests of the child/circs of each parent, similar to what is proposed to be added to (2) of this statute?

45% Limitation

• Application of the 45% pro rata share in case #1 does not constitute a “substantial change of circumstances” justifying immediate modification of case #2, case #3, etc.

45% Limitation

• When a support order otherwise qualifies for modification, it is appropriate to apply the 45% limitation

45% Limitation

• Day care and other extraordinary expenses should be excluded from the 45% limitation [keep existing statutory language in RCW 26.19.065(1)]

Residential Credit

• CONSENSUS: It is important to eliminate or reduce the uncertainty associated with a residential credit

Residential Credit

• CONSENSUS: Before residential credit is allowed, there must be court-ordered residential time with the parent who is seeking a residential credit

Residential Credit

CONSENSUS: Residential credit should be based on a formula– What formula should be used?

Residential Credit

• CONSENSUS: there should be a threshold before applying the formula

– What is the threshold?

Residential Credit

• CONSENSUS: We should define “substantial time”– How?

Residential Credit

• CONSENSUS: One definition of “substantial time” is an overnight– How should significant parenting time that is

not an overnight be addressed?

Residential Credit

• CONSENSUS: We need a mechanism to reduce or eliminate the credit if time is not used

– What should that mechanism be and how will it work?

Income to Determine the Support Obligation

• CONSENSUS: Net income should be used for calculating child support obligations

Income to Determine the Support Obligation

• CONSENSUS: RCW 26.19.071(6) should be revised to read as follows:

(6) In the absence of records of a parent’s actual earnings, the court shall impute a parent’s income in the following order of priority:

(a) Full-time earnings at the current rate of pay;(b) Full-time earnings at the historical rate of pay based on reliable information, such as

Employment Security Department data;(c) Full-time earnings at Full-time earnings at a past rate of pay where information is

incomplete or sporadic;(d) Full-time earnings at minimum wage in the jurisdiction where the parent resides if the

parent has a recent history of minimum wage earnings, recently coming off public assistance, GAU, SSI, or disability, a recent release from incarceration, or high school;

(e) Median net monthly income of year-round full-time workers as derived from the United States bureau of census, current population reports, or such replacement report as published by the bureau of census.

Definition of “income”

CONSENSUS: Self-employment or business income should be included in the definition of income


• Should we change how income from second jobs and overtime is treated?


CONSENSUS: the current limitation on voluntary retirement/pension (e.g., IRA) should be updated.

We should revise 26.19.071(5)(g) as follows:

(g) Up to five thousand dollars per year in voluntary retirement contributions actually made if the contributions show a pattern of contributions during the one–year period preceding the action establishing the child support order unless there is a determination that the contributions were made for the purpose of reducing child

support ;

Economic Table

• CONSENSUS: The economic table should include combined monthly net income over $5,000

Economic Table

• CONSENSUS: Should include combined monthly net income up at least to $12,000– but should it go higher?

Economic Table

• CONSENSUS: The economic table should start at $1,000 and move up in $100 increments

Economic Table

• CONSENSUS: The “A & B” columns should be collapsed and the table should not distinguish by age

Economic Table

• CONSENSUS: Child care, ordinary medical expenses and extraordinary medical expenses should not be included in the economic table

Economic Table

• CONSENSUS: Should be based on an income shares model

Is this still a consensus item???

Economic Table

Which model should be used as the basis for the economic table?

Subcommittee recommended that the Workgroup choose among the six options listed on the next slide….

Economic Table

Options:

1. The current economic table, with the agreed-upon changes above, and take out the 5% for ordinary medical expenses

2. The McCaleb table

3. The Krabill Table, also known as the Best Fit Curve

4. Betson-Rothbarth from the 2005 Workgroup Report

5. Average of Betson-Rothbarth and Betson-Engel, with extensions based on numbers provided by Jane Venohr to the 2005 Workgroup (Kathleen Schmidt and FLEC)

6. Betson-Engel from the 2005 Workgroup Report

Economic Table

• CONSENSUS: 5% of obligation = ordinary medical expenses should be removed from table

Economic Table

CONSENSUS: We recognize that 2SHB1009 uses the term “medical expenses.” However, instead of “medical expenses,” we should use the term “health care expenses,” and perhaps include a definition of “health care expenses.”

Economic Table

• CONSENSUS: Medical expenses (aka health care expenses) should be set proportionately

Economic Table

• CONSENSUS: the table should not have an “advisory” portion, but should be all presumptive

Children From OtherRelationships

• CONSENSUS: At a minimum, “prior-born” children should be considered (i.e., children born before the child who is the subject of the current support order)

Children From Other Relationships

Should we consider children from other relationships of just the noncustodial parent, or should we consider the custodial parent’s children from other relationships as well?


• What other children should be included, for instance step-children, after-born children, adopted chldren?


• Should the order consider all of the children for whom a parent owes a duty of support?


• Is there a formulaic (above the line) approach to apply to children from other relationships?

• Whole Family Formula?

Presumptive MinimumObligation

• CONSENSUS: Presumptive Minimum Obligation should increase

Presumptive Minimum Obligation

CONSENSUS: The presumptive minimum obligation should continue to be expressed as a “per month per child” amount.


• CONSENSUS: Presumptive Minimum Obligation should be set at $50 per month per child


CONSENSUS: Language re “earning capacity” (RCW 26.19.065(2)) should say: “and involuntary limits on either parent’s earning capacity (e.g., incarceration or disabilities or incapacity).”

• …subject to drafting or wordsmithing…


CONSENSUS: Because the presumptive minimum obligation must be a rebuttable presumption, the statute should not provide directions on how low to deviate

child support schedule workgroup points of consensus and issues for discussion revised after the...

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