CHILD-SUPPORT UNIT WOULD PROFIT EVEN IF RETIRMENT PAID

JACKSON - Members of the Cape Girardeau County Commission were advised Thursday that the child-support enforcement unit of the prosecutor's office would turn a profit even if the commission decides to pay $6,500 into a retirement fund for prosecuting attorneys.

Presiding Commissioner Gene Huckstep, who conceded the program had been profitable the last few years, said it "is morally wrong" to be using proceeds from this kind of program to support prosecutors retirement.

In most counties, including Cape, the prosecutor is covered by the LAGERS retirement program for elected officials and employees. The program requires all employees to be part of it. However, under a law passed in 1989, the prosecutors have a second retirement fund, which for second-class counties requires an annual payment of $6,500 from the child-support program profits.

Cape County has refused to pay into the program and the Missouri Office of Prosecution Services has turned the county over to a law firm to collect about $20,000 it says the county owes.

Michael Shortridge, an assistant attorney general who is responsible for the program, referred to as 4-D, met with the commission at the request of Prosecuting Attorney Morley Swingle to explain the program.

He agreed that under the law, if Cape County did not renew its contract with the state for the 4-D program, it would not be required to pay into the prosecutor's retirement fund.

Shortridge said he did not want to get in the middle of the county's dispute with the retirement fund. He said Cape County was making money on 4-D, and if the county drops the program the state lacks the resources to provide the present level of service to children in the county by collecting delinquent child support.

"The 4-D program provides a service to people of this county that would not be provided if the county were not doing it," said Shortridge. "And the program does show a profit - it is not costing the county any money."

Huckstep said he could not speak for Associate Commissioners E.C. Younghouse and Leonard Sander, but he repeated several times during the discussion that he was leaning toward voting against renewing the 4-D contract next month because he opposes money going to the retirement fund.

Huckstep said the county is already paying about $8,000 a year into the LAGERS program for Swingle.

"It's morally wrong to use this program to fund the prosecutor's retirement fund," said Huckstep. "It's a damn shame the County Commission even has to consider abolition of this program over this issue."

Younghouse and Sander have not been as outspoken against the retirement fund as Huckstep; however, both agreed two weeks ago to hire attorney Albert Lowes to review Cape County's options.

After the meeting with Swingle and Shortridge, the commission went into a closed session to hear a report from Lowes and possible legal action the county could take.

Huckstep said no decisions were made because the commissioners need time to review the information compiled by Lowes. Also, Sander was not present for Thursday's meeting because his daughter-in-law was having a baby.

"We hope to decide something next week," said Huckstep. "We are still wanting clarification on what happens if we pull out of 4-D."

Swingle agreed with Huckstep that it was not fair for prosecutors to have two retirement funds. He reminded the commission that in fall 1989 he had asked to be removed from the special retirement fund. Under the law creating the retirement fund, counties are required to pay a portion of 4-D profits toward the fund.

Swingle urged the commission to keep in mind the value of the program to citizens of the county. "We should not cut off our nose to spite our face," said Swingle.

He said sheriff's also have a special retirement fund, created in 1983, in addition to LAGERS. Swingle said he believes the funds were established in an effort to keep honest and experienced people in positions like sheriff and prosecuting attorney.

Swingle questioned Shortridge at length about the program and its value to citizens in the county. The prosecutor also focused on the fact that even by paying $6,500 into the fund Cape County would still make a good profit on the program, and collection of delinquent child support would not be done the way it is now if the state took over the program.

Shortridge told the commission that in 1991, Cape County billed the state $41,545 for operating the child-support enforcement unit. The state reimbursed two-thirds of that, or $27,843 in expenses, and also provided $41,348 in incentives from collections, for total receipts of $69,192.

Shortridge said last year Cape County had a net profit of $27,646, and even taking out $6,500 for the retirement fund, still would have $21,000 in profit.

He explained the program is almost entirely federally funded and that one in three children in the state of Missouri is under the 4-D program. "An awful lot of citizens in this county benefit from this program," said Shortridge.

He said that as collections increase Cape County's incentive payments will also increase. Shortridge said the program makes a profit for the state and every county in the state that has the program is making a profit.

Only seven small counties in the state do not have a 4-D program, he said.

One of those counties is Perry County. Huckstep said it was his understanding Perry County dropped out because it did not want to pay into the retirement fund. Shortridge said he did not know why they had dropped the program.

"We concede the last four years the 4-D program has turned a profit for this county," said Huckstep. "But that has not always been the case."

Huckstep also said that in figuring profits not all overhead expenses are taken into consideration.

The presiding commissioner said he was concerned that at some point the state and federal government might cut back on the county's incentive payments, which would reduce its profit potential.

Shortridge said he knew of no plans now to do that, but it might happen some day.

"This program is on a one-year contract," he said. "You can drop out of the program anytime it is cut if you desire to."

The county's 4-D contract is up for renewal July 1. Huckstep said he hopes the commission can come to a decision by the end of next week.