State Disbursement Unit (SDU)

The CDSS established the SDU effective September 1, 2006, to provide a central location for the collection and disbursement of all support payments previously sent to DCSSs and directly to individuals.

Statewide Allocation

Prior to the implementation of statewide allocation, an NCP or his/her employer submitted payment for the NCP’s court-ordered child support obligation directly to the DCSS in a specific county. That DCSS would then credit the payment against any current or past due child support for the NCP’s child/children living in that county. Under Statewide Allocation, the child support collected will be sent to the SDU to be divided among all Title IV-D eligible NCP cases within the state, based on the payment source and the corresponding allocation rules as defined by policy. In all cases, child support payments will be applied first to current obligations before any residual payments can be credited to an outstanding arrearage.

The statewide allocation changes may affect the amount of child support:

• A client receives
• Disregard issued to a client
• That is credited towards arrearages, and
• Applied towards the 48-month time limit

Example Example An NCP owes support for his/her two aided children living in counties A & B. The NCP is obligated by separate court orders to pay $200 per month for each child. The NCP (or his/her employer) sends a support payment ($200) for the child living in County A. In the past, the entire payment would have been submitted to the DCSS in County A, credited only to the case in County A, and the disregard would have been sent to the CP in County A as a disregard. As a result of statewide allocation, the payment will now be pro-rated between the cases in County A and B. The case in County A will be credited with $100 and the case in County B will be credited with $100. Each of the cases would be eligible for the disregard where previously only the case in County A would have received that payment. 

Annual Fee for Never-Assisted Child Support Cases

In the federal Deficit Reduction Act of 2005, all states were instructed to impose a $25 annual service fee to never-assisted families for which the custodial parent has received $500 or more in child support payments during the previous federal fiscal year. The mandate went into effect January 1, 2008. Until now, the state has paid this fee; however, as of October 1, 2010, the state will no longer pay the fee on behalf of families. Effective October 1, 2011, and every October 1, thereafter, DCSS will assess a $25 annual service fee to all never-assisted child support cases that meet the criteria for fee assessment.

Individuals who are currently receiving or have ever received TANF or Tribal TANF in California or another state, are exempted from having to pay the annual fee. Also exempted are custodial parents who have already paid an annual fee in another state during the same year.

Related Topics

Direct Support & the State Disbursement Unit Overview

Medi-Cal Only - Direct Medical Support