LANSING - Even as the Michigan Child Support Program increased collections by $18 million to help keep children out of poverty in 2006, looming federal cuts threaten to decrease the programs effectiveness by billions of dollars over the next decade.

In last year's federal Deficit Reduction Act, the federal government cut more than $50 million per year in administrative funding to the state and counties. According to the Congressional Budget Office, this will reduce collections in Michigan by $300 million in the first five years and $1.2 billion in ten years. Governor Jennifer M. Granholm's proposed budget restores this much-needed funding for the state and counties.

"We are proud of what this program does to keep Michigan's children out of poverty," DHS Director Marianne Udow said. "For this reason, the federal cuts that go into effect on October 1, 2007, are a grave concern and a threat to families in Michigan."

In fiscal year 2006, Michigan child support workers distributed approximately $1.4 billion in child support. The program sent $1.27 billion directly to Michigan families, provided $29 million in medical support to children and reimbursed the federal and state governments $95 million for public assistance provided to families. More than $396 million in past due support was collected and distributed to families.

"Each child support professional was responsible for collecting $573,356 in 2006, an increase of $24,000 per worker when compared to 2005," said Marilyn Stephen, director of the Office Child Support. "Child support professionals continue to do an excellent job for Michigan families."

Additionally, every year the federal government provides incentive dollars to states for five performance categories: paternity establishment, support order initiation, current support collection, collection of past due support and cost effectiveness. Michigan received $26 million in incentives in 2006 for the previous year's performance and expects to receive incentives for performance in 2006. The amount Michigan receives will be determined by how many other states qualify for incentives. This sum is shared between the state and county Friend of the Court and prosecutor's offices.