Justification Governor's Recommendations 2022-23
The Governor's Budget Recommendation for Fiscal Year 2022-23 includes a recurring reduction of $471,818 in General Revenue in the Transfer General Revenue to Child Support Enforcement category in the Child Support Program (Program). The Program receives a recurring General Revenue appropriation to pay for financial losses resulting from the processing of child support collections. Effective October 1, 2016 the Department entered into a contract for State Disbursement Unit Services. The new contract requires the vendor to pay for financial losses, unless specifically a result of a Department error. In FY 2020-21 the Department reduced the appropriation for financial losses by $1,000,000. After additional analysis, the Department determined that the appropriation can be reduced by an additional $471,818.
This issue was included in the Department's VIIIB-2 reduction exercise as well as the Department's Legislative Budget Request and will have a minimal impact on the agency's operations.
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