I believe you are confused about what you are referring to as the CHIPS "system". There is a criteria used in EVERY state that qualifies a CPS report as screened in or screened out. CHIPS is just another acronym for a Child Protection system under the umbrella of Social Services.
A screened out report simply does not rise to the level of abuse or neglect. A "filthy" house does not tell us anything as the wording is very ambiguous and can be interpreted differently by different individuals. The report must be specific. Filthy is not specific. Is the home a health hazard? Why? Do they have running water? How are they bathing? Is there an insect infestation? Is there sewage backing up in the home? etc. etc. If you are not specific, your concerns may not rise to the level of neglect. Laundry piled up in the home, dirty dishes, dirty windows, floors, etc. are not considered a neglect issue...merely a bad housekeeping issue. You will find that many people are very judgemental about how they think other people should live....not how the law interprets how people should live. Poverty is not neglect. Poverty is not a crime.
Another thing is that you have the impression that screened out reports are referred back to the next time a report is made. That is patently false information. When a report is screened out, there is nothing entered about that family. The report is kept, but a total number of screened out reports do not impact whether or not a CPS investigation is undertaken. Only information that is made at the time of the report is under consideration. No one goes back into files to "see" if there were prior calls. Never, nada, doesn't happen.
This is not a money issue. The abuse/neglect criteria is determined by the lawmakers of your state and the federal government. If a report meets the criteria, it is investigated. Period. Every report is assigned a time frame depending on the severity of the allegations....everything from an immediate response to a few days. If a Social Worker/Investigator does not see the family within the assigned time frame, the case is considered out of compliance.
These are not optional rules. They are monitored closely and federal funding is drawn down based on individual criteria and policies. It has nothing to do with alcoholism, money or anything except the laws that are clearly spelled out for the public to see if you go to your local Social Services and click on the link for Children's Protective Services Policy Manual.