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WHAT IS THE COST OF PROVIDING FOR THE LIFE NECESSITIES OF A CHILD WHOSE PARENTS LIVE IN SEPARATE RESIDENCES AND HAVE A TYPICAL CUSTODY ARRANGEMENT IN THE STATE OF INDIANA?
In divorce and paternity actions it is a standard violation of the United States Constitution to take custody away from one parent and make that person a weekend visitor. The typical visitation time for the visiting parent is every-other weekend, four hours on Wednesday night, two weeks during the summer and holidays according to the Holiday Visitation Schedule. The cost we have calculated also assume the child is in school or daycare and has no special needs or other extraordinary costs. Cost of school books and lunches are set at $560/yr for incomes over $40,000 year. Assumes no variations for subsequent children or other support or alimony paid and no health insurance premiums. We have used support as defined by the Indiana General Assembly without figures for medical care which is usually figured separately in support orders and would be in addition to the cost indicated below.
This is the cost estimated for providing food, clothing, shelter and an education for one child age 9 attending public school and paying $2/day for lunch and $200/yr in book fees. Taxes nor tax benefits, medical care, transportation and other non necessities have not been figured into the cost.
This is the cost estimated for providing food, clothing, shelter and an education for one child age 2 in daycare 10 hours per day, attending 48 weeks a year and paying for 50 weeks at $100 week. Taxes nor tax benefits, transportation, medical care and other non necessities have not been figured into the cost.
The above figures are based upon information provided by the Indiana Supreme Court. Formula for calculating cost presumes each parent to be responsible for 50% of the cost and time of providing for the care of the child outside of school or daycare and that each parent earns 50% of the combined income. Time is calculated by averaging the parent's time from the standard visitation schedule less time spent in daycare or school. Cost paid by the NCP is applied to the difference in time that each parent provides for the care of the child. That rate is then applied to the total time in a year outside of school or daycare.
In looking at these figures it becomes clear that these are in no way based upon the actual cost of caring for a child. It is rational to assume that most parents will be earning nearly identical amounts, as women are now more commonly the primary earner in a household and earning potential disparity has largely been eliminated through widespread use of daycare centers, college education and more men being stay-at-home fathers.
The first thing that stands out is the cost of providing support to one child age two by parents each earning $10,000 per year. At 15,000 per year this is just under the poverty level for a family of four by $2,000. In Boone County where the median income is about $60,000 the cost of raising one child is estimated at over $27,000.1
In Central Indiana for a family of four, two adult earners and two children aged 2-5 years, it is estimated that they need to earn $35,000 annually before taxes. For a family of three, one adult earner and two children aged 2-5 years, it is estimated that the need to earn is $32,200 annually before taxes. These figures include all household and living expenses including medical care and transportation. 2
Nationally the costs of providing for a child is $7044 for age 2 and $7224 for age 9.3 In the Midwest the reimbursement rate for the cost of providing care to a child in the foster care system is $5604 for age two and $5768 for age nine. The average family proving foster care earns about $40,000 annually. 4 This places the cost from the Indiana guidelines at 382% and 225% for ages 2 and 9 respectively.
There already exist known and estimated cost for the care of children provided by the various agencies of the federal government and the states. Figures provided are generally based upon median levels. That being half are more and half are less. In Boone County with a median income level of $60,000 the child support guidelines put the cost of raising one toddler at $27,000. This is far more than what it would cost the state to place the child in foster care. Clearly the State of Indiana, and actually all states, do not intend for the child support payment system to provide realistic compensation for the care of a child.
1) Median family income Boone County 2000 was $58,879. The poverty level was $17,029 in annual income for a family of four. source: U.S. Census Bureau 2) Source: Indiana Business Review, Fall 2005 | Volume 80, Number 3 3) Source: Expenditures on Children By Families, USDA Center for Nutrition Policy and Promotion. 4) Basic Foster Care Reimbursement Rate KY $599 age 2, age 9, IL $369 age 2, $410 age 9, MI $433 age 2, age 9. Indiana and Ohio both set their own rates by county. Source: The Pew Institute.
