44-260.G. Budgeting Income for AR/CO Cases

 

Table of Contents

Section

Topic

44-260.G.1

Prospective Budgeting

44-260.G.2

Reasonably Anticipated Income

44-260.G.3

Required Case Documentation

44-260.G.4

Conversion Factors

44-260.G.5

Calculating Income

44-260.G.6

Reported Income

44-260.G.7

Evaluating Reported Income

44-260.G.8

Questions and Answers

CPG Letters 284 (3/13); 309 (1/14)

 

44-260.G.1
Prospective Budgeting

Income reported on the Application for CalFresh, Cash Aid, and/or Medi-Cal/Health Care Programs (SAWS 2 PLUS) at initial application and at annual redetermination will be considered to be reasonably anticipated, and will be used together with any anticipated income changes reported by the Assistance Unit (AU) to determine CalWORKs eligibility and grant amount for the upcoming AR/CO period.

Any conflicting income information is required to be resolved before the authorization of benefits.

CONTRACT/SELF-EMPLOYMENT INCOME:

When the CalWORKs AR/CO AU has an associated Public Assistance CalFresh (PACF) case and the recipient has contract or self-employment income that is intended for less than one year, the income will be averaged over the entire 12-month AR/CO period for both CalWORKs and CalFresh, as long as the income is not received on an hourly or piecework basis.  See example in CPG 44-260.H.1.

For CalWORKs only AR/CO AUs, prospective budgeting and reasonably anticipated income rules will apply and the income will only be considered for those months in which the income is reasonably anticipated.

ACL 12-49

 

44-260.G.2
Reasonably Anticipated Income
Top

Income, either earned or unearned, will only be considered “reasonably anticipated” if:

1.    There is verification that the income has been or will be approved/authorized within the upcoming AR/CO period, or the AU is otherwise reasonably certain that the income will be received within the AR/CO period; and

2.    The anticipated income amount is known and verified, or the AU is otherwise reasonably certain of the income amount; and

3.    The start date of the anticipated income is known and verified, or the AU is otherwise reasonably certain of the income start date.

Anticipated income will not be used in the benefit determination if the expected amount is not specified or if it is uncertain when the income will be received.

ACL 12-49

 

44-260.G.3
Required Case Documentation

All income information is required to be clearly documented in CalWIN even if the income is not reasonably anticipated or not used in the budget.

Case Comments and other verifications will be used to clarify any changes in income including, but not limited to, the following:

·         New income;

·         Income that is ending;

·         Income that is expected to change;

·         Fluctuating income, including instances of overtime or absences from work; and

·         Unstable income that the recipient cannot reasonably anticipate.

ACL 12-49

 

44-260.G.4
Conversion Factors
Top

When income is anticipated to be received for the entire month but is received on a weekly or biweekly basis, the following conversion factors will be used to convert the income to a monthly amount:

·         Weekly Income:  4.33

·         Biweekly Income:  2.167

See example in CPG 44-260.H.2.

If the AU receives weekly or biweekly income that fluctuates each month and the income amount cannot be reasonably anticipated, the conversion factor will not be used.

If the income is received semi-monthly (i.e., 15th and 30th of the month) and the monthly amount fluctuates, then only the income that can be reasonably anticipated will be used in the benefit determination per CPG 44-260.G.7.

ACL 12-49

 

44-260.G.5
Calculating Monthly Income

The CalWIN system uses conversion factors to calculate the monthly income based on the income amounts entered by the HSS.  CalWIN will not calculate the averaged income.

As noted in the following tables, the HSS is responsible for:

·         Calculating the average income amount outside of CalWIN;

·         Entering Case Comments to explain their calculation; and

·         Entering that income information into CalWIN.

Income Conversion

Required Actions

Weekly Income

The HSS will:

·         Add the 4 (or 5) weekly paychecks together and divide by 4 (or 5) to get the weekly average; and

·         Document the calculation in Case Comments and enter this amount in CalWIN.

CalWIN will:

·         Multiply the weekly averaged income by 4.33.

Biweekly Income (Every Two Weeks)

The HSS will:

·         Add the 2 (or 3) biweekly paychecks together and divide by 2 (or 3) to get the biweekly average; and

·         Document the calculation in Case Comments and enter this amount in CalWIN.

CalWIN will:

·         Multiply the biweekly averaged income by 2.167.

Semi-Monthly Income (Twice a Month)

The HSS will:

·         Add the 2 paychecks together and divide by 2 to get the average; and

·         Document the calculation in Case Comments and enter this amount in CalWIN.

CalWIN will:

·         Multiply the averaged income by 2.

ACL 12-49

 

44-260.G.6
Reported Income
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Income reported in the middle of the AR/CO period will be evaluated using the current month’s income along with any reasonably anticipated income, per CPG 44-260.C and 44-260.D.

If the income amount is not known or if the AU is not certain when this income will be received, then this income cannot be reasonably anticipated or used in the budget calculation.

Case Comments are required to clearly explain why known income will not be used in the benefit determination.

REMINDER:  Decreases in income may be voluntarily reported at any time and a supplement will be issued, if appropriate.  See CPG 44-260.C.4.

ACL 12-49

 

44-260.G.7
Evaluating Reported Income

The following table shows how the various types of reported income will be evaluated per CPG 44-260.C and 44-260.D:

Income Type Reported

Evaluation

New Income

Will not be anticipated unless the AU is reasonably certain of the income amount and start date.

The AU is required to report within 10 days when their income exceeds the IRT for their AU size per CPG 44-260.E.

See examples in CPG 44-260.H.3.

Ending or Changing Income

Will not be reasonably anticipated if the AU is not sure of when or by how much the income will stop or change.

Ending income will not be averaged over the AR/CO period.

Ending income will only be counted in the months in which the income is reasonably anticipated to be received.

See example in CPG 44-260.H.4.

Fluctuating Income

Only that portion of income that the AU can reasonably anticipate will be included in the benefit determination.

Additional clarification may be needed to find out what income amount, if any, can be reasonably anticipated.

If the recipient states the income is too unpredictable to anticipate, and there is no other conflicting information, then no income will be anticipated.

See example in CPG 44-260.H.5.

Unstable Income

If the income reported on the SOF is not typical, clarification is required to explain why this income is not reasonably anticipated.

If the AU can provide an estimate of future income that can be reasonably anticipated, then the estimated income will be used to determine benefits unless otherwise questionable.

If the recipient states the income is too unpredictable to anticipate, and there is no other conflicting information, then no income will be anticipated.

See example in CPG 44-260.H.6.

ACL 12-49

 

44-260.G.8
Questions and Answers
Top

Additional information and clarification may be found in CPG 45-000.BAnnual Reporting/Child Only (AR/CO) Q&A.

ACL 13-28