Governor agrees not to hit counties with federal penalties

The state is facing at least $1.6 million in penalties because it hasn't gotten the NOMADS computer program up and running well enough to monitor child support payments and track deadbeat parents.

Another $3.6 million in fines will be added to that if the system isn't running by 2000 - bringing the total for this two-year budget cycle to $5.2 million.

The governor's original budget passed the penalties for that problem down to the counties which administer child support enforcement. That brought loud protests from county district attorneys who said the penalties were the state's fault, not theirs, and that county enforcement programs shouldn't suffer.

Welfare Director Myla Florence said Tuesday the governor now agrees counties shouldn't suffer financially and will ask lawmakers to amend the proposed budget.

"The governor has indicated the state should not penalize the counties for the contractor's inability to bring up the system timely," she said. "He will build the penalties into the budget and not flow it down to the counties."

But Florence said she and the governor don't believe the state should absorb the loss either.

"We will pursue the contractor for the penalties," she said, pointing out that IBM, which is developing the controversial and expensive integrated computer system, failed to make the deadlines imposed by the federal government.

Because of repeated development problems, the complexity of an integrated system and many changes in the federal mandates, the cost of NOMADS has now swelled to more than $95 million - some $70 million of that from federal sources.

When completed, NOMADS is supposed to integrate all the programs and services available through welfare from Temporary Assistance for Needy Families to Medicaid, food stamps and the controversial child support enforcement into one system. It has been billed as "one-stop shopping" for families needing such services.

Guinn, Florence and Department of Information technology Director Marlene Lockard met earlier this week with federal welfare officials to discuss the fines and federal decisions to withhold future funding. Another meeting with federal officials is set for Monday in Carson City.

archive