California fined $1.2 billion for network fiasco

How is it possible that a state that includes Silicon Valley and so many high-tech centers you can hardly drive a few miles with out hitting one live with this: California paid $1.2 billion in federal penalties over the past ten years because it couldn’t create a statewide computer network to track and collect court-ordered child support payments. Published reports say the penalties are really just the tip of the iceberg since one failed system cost the state $111 million and four other failed computer projects have cost the state about $500 million. The story isn’t all about fines either mind you. The failed network projects means many children of low-income families likely went hungry without state aid. Meanwhile if the state had met the original 1995 deadline for having a statewide system, the federal government would have paid 90% of the cost. The federal share dropped to 66% after the deadline according to a San Diego Union Tribune article. The only other state that has failed to meet the federal requirement is South Carolina, which has paid $49 million in penalties, according to the federal Administration for Children and Families. The penalties are based in part on the size of a state’s population. California is indeed nearing completion of a $1.6 billion child support computer system that officials hope will end the penalties and give the state a $180 million penalty refund. Federal inspectors are scheduled to return in June and August before deciding whether to certify that the state is in compliance with federal regulations. In an annual report issued last month, the state said it has 117 information technology projects under way that will cost more than $5 billion when completed. A list of the 10 most expensive projects is topped by the child support system, at $1.4 billion, and the fourth most expensive project is a $236 million unit that sends out child support payments.