University of Wisconsin - Madison J & 74 ' Institute for Research on Poverty

This paper examines the new child support guidelines being developed by the states in response to the Child Support Amendments of 1984 and the Family Support Act of 1988. The major objectives of the paper are to determine the extent to which the new guidelines can be expected to increase child support awards and payments and the relative importance of using the new guidelines to either establish initial awards or update awards. The analysis focuses on the guidelines being developed in Wisconsin, Colorado, and Delaware, which are representative of those being implemented nationwide. The results suggest that the new guidelines will increase child support payments by somewhere between 47 and 54 percent. Most of the increase is the result of higher child support awards, which we predict will increase by between 77 and 88 percent, depending on the guideline being considered. We also predict compliance with the new guidelines will be modest, averaging 61 percent across marital statuses, but this evidence is very tentative, based on an analysis of the current system, and the results may not carry over to the new system. The results also suggest that simply implementing the new guidelines at the time of a divorce will not be enough to ensure an effective child support system. One of the major reasons why child support payments have been declining in real terms in recent years is that the awards are being eroded by inflation. Erosion occurs because the current system has no built-in mechanism for updating awards to keep up with the cost of living. The Family Support Act of 1988 requires states to develop mechanisms for periodic updating of awards. Our results suggest that updating is an important component of an effective child support system and that at least as much attention should be devoted to implementing this provision of the Family Support Act as10 the other, more publicized, provisions. Child Support Guidelines: Will They Make a Difference?