CDSS has issued instructions about a programming error that caused incorrect child support distribution in about 28,000 cases. The problem occurred in the implementation of repeal of the Maximum Family Grant rule. The error caused some families who are receiving CalWORKs to receive the entire amount of current child support instead of only the $50 disregard. In other cases, the error incorrectly caused the full amount of child support collected to be retained by the state when some or all of the collection should have been distributed to the family.
CDSS states that payments issued in error are unlikely to continue and therefore should not be considered income because they are not reasonably anticipated. After two payments, the County Welfare Department should communicate with the Local Child Support Agency to determine if the payments will continue. If the payments will continue, they will be considered to be reasonably anticipated going forward.
For cases where the $50 disregard was improperly retained by the State, the $50 disregard will be retroactively paid to the family. These retroactive payments will not be considered income or property for CalWORKs. (All County Welfare Directors Letter, December 28, 2017.)