63-282     Prospective Budgeting and Reasonably

                Anticipated Income

 

Table of Contents

 

 

Section

Determination of Income Eligibility and Benefits

282.1

Prospective Budgeting

282.2

Reasonably Anticipated Income

282.3

Anticipating Unemployment Insurance Benefits (UIB)

282.4

Examples of Reasonably Anticipated Income

282.5

Changes after the Initial Month of Eligibility

282.6

Use of Weekly and Bi-weekly Conversion Factors

282.7

Examples: Use of Weekly and Bi-weekly Conversion Factors

282.8

Allotment Determination Based on Stable Income

282.9

Allotment Determination Based on Fluctuating Income

282.10

Contract/Self-Employment Income

282.11

Income Starting and Ending Mid-Period

282.12

Reasonably Anticipated Expenses

282.13

63-281 Reasonably Anticipated Income Determination (QR/PB)

(internal Link)

 

63-282.1
Determination of Income Eligibility and Benefits

CalFresh benefits for the certification period will be determined using prospective budgeting and reasonably anticipated income.

A.   The determination of initial eligibility is based on the information reported at application: Income already received the month of application and income that is reasonably expected to be received for the certification period.

Refer to 63-281.1 and 2.

B.   Continued financial eligibility will be determined:

·         When reviewing a SAR 7.

Refer to 63-274 and 63-275.

·         At recertification based on the recertification form, verifications submitted and the interview.  The worker will determine if the household will continue to be financially eligible for the upcoming certification period based on income that the household reasonably anticipates it will receive in the upcoming certification period.

Refer to 63-304 and 63-281.4.

·         When the household makes a mandatory mid-period report of income over their Income Reporting Threshold (IRT).  The worker will determine if the household will continue to be financially eligible for the remaining months of the certification period.

Refer to 63-283.

·         When the household makes a voluntary report that is considered verified upon receipt (VUR).  The worker will determine if the household will continue to be eligible for the remaining months of the certification period.

Refer to 63-284.

 

63.282.2
Prospective Budgeting

A. PROSPECTIVE BUDGETING DEFINITION

Prospective budgeting requires the worker to determine the income that the applicant or recipient anticipates with reasonable certainty will be received in the certification period.

·         Income from the application month and/or the month prior to the application month, or the SAR 7 Data Month, as well as any reasonably anticipated changes in income and expenses will be used as an indicator of the income that is or will be available to the household for the certification period or remaining months of the certification period.

·         Changes in income reported mid-period will be evaluated using the current (report) month’s income and any anticipated changes.

B. DOCUMENTATION

The worker is required to thoroughly document how income is anticipated when determining benefit calculations.  Case comments and other documentation will be particularly critical when documenting any changes in income, including, but not limited to:

·         New income,

·         Income that is ending,

·         Income that is expected to change,

·         Income that fluctuates (including anomalies such as overtime or missed work), and

·         Income that is so unstable that the recipient cannot make a reasonable estimate of what to expect in future months.

Unless the worker finds conflicting information, the income and anticipated changes reported on the SAR 7 or recertification forms will be used to determine benefits for the certification period or remaining months of the certification period.

NOTE: The fact that a household has received income in the past and now reports that the income has stopped does not mean there is a conflict.

For Quality Control (QC) purposes, reviewers will rely heavily on case documentation when reviewing a case to determine if the correct allotment has been issued.

 

63-282.3
Reasonably Anticipated Income

Income is “reasonably anticipated” when the household and the worker determine it is reasonably certain that the household will receive a specified monthly amount in the certification period or remaining months of the certification period.

If the amount of income that will be received or when it will be received is uncertain, the portion of the income that is uncertain will not be counted.  This definition applies to both earned and unearned income.

The household is not required to report an exact amount of anticipated monthly income for each month of the certification period.  Instead, the household will be required to provide information for the Data Month and any anticipated changes for the next certification period or remaining months of the certification period following the Submit Month.

The income received in the Data Month will be considered reasonably anticipated and will be used in the budget calculation unless the household reports that they anticipate a change in the upcoming certification period or remaining months of the certification period.

If the household reports income from a new source like a new job or unemployment benefits, the income can be anticipated for the upcoming certification period or remaining of the certification period only when:

1.    The household verifies that the income has been or will be approved or authorized within the upcoming certification period or remaining months of the certification period, or the household is reasonably certain that the income will be received within the period;

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

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

Refer to 63-282.12.

If the household ...

Then ...

Anticipates new income for the upcoming certification period or remaining months of the certification period, but is not reasonably certain of the dates and amounts,

The income cannot be considered reasonably anticipated and will not be used in determining the benefits for the certification period or remaining months of the certification period.

New income cannot be anticipated unless the household is reasonably certain of the amount of income and the start date.

Monthly income fluctuates or the household expects the income received in the Data Month will change in the upcoming certification period or remaining months of the certification period,

The worker must attempt to find out the amount of income the household reasonably expects to receive, in order to determine what income, if any, can be reasonably anticipated. 

Only that portion of income that the household reasonably anticipates can be used in the benefit calculation.

Reports that they expect their income to change or stop, but are uncertain of when or by how much,

The worker cannot reasonably anticipate this change.

However, if the recipient states that the Data Month income is not typical, explains why, and lists an estimate of future income, barring any information to the contrary, the worker will use the recipient’s estimate of future income.

States that their income fluctuates so much that they can’t anticipate any income,

The worker will not count the income.

However, if the worker disagrees, the worker will explore with the applicant or recipient what amount, if any, can be reasonably anticipated and document the basis for the amount used in case comments.  

The worker will explain to the household to call mid-period to report when the income decreases.  The worker will adjust the budget and supplement the benefits when the verification is received.  Refer to 63-282.9 and10.

.

 

63-282.4
Anticipating Unemployment Insurance Benefits (UIB)

Whether the household is Semi-Annual Reporting (SAR) or Change Reporting, the worker will not anticipate UIB if the payment amount AND the date of receipt are not known.

Anticipating UIB at InITIAL APPLICATION

·         SAR Households

If the worker cannot reasonably anticipate UIB at initial application and later finds out that a SAR household member has actually received UIB during the certification period, the worker cannot retroactively budget the UIB and will not establish an overissuance (claim) until the next report (SAR 7 or recertification). Information that is subsequently obtained after the initial budget has been reasonably determined is not relevant to the initial budget as long as the income could not be reasonably anticipated.

NOTE:  A household is required to report mid-period when the household’s total gross income, including UIB, exceeds their IRT. 

·         Change Reporting Households

Change Reporting households are required to report changes within 10 days of the occurrence (63-261.1 and 2).  If the worker cannot reasonably anticipate UIB at initial application and later finds out that a household member started receiving UIB and did not report it timely, the worker will establish a claim starting the first month in which the change would have been effective had it been reported timely subject to the ten-day notice requirement (Refer to 63-252.2 and 63-452.1, 2).

ACL 11-49

Refer to 63-282.6.

NOTE:  For CalFresh, UIB may not be reasonably anticipated based only on current claim information from the EDD Real-Time Match, regardless if there are no issues to be resolved.

.

 

63-282.5
Examples of Reasonably Anticipated Income

.

Example 1:

Scenario

A client that was paid bi-weekly reports that she was laid off.

She has applied for UIB, but has not received an actual award letter or check, and does not know when she will receive the first check.

Outcome

The UIB cannot be reasonably anticipated because the timing of the income is not known.  The worker will not prospectively use this income in the determination of eligibility and benefit amount.

 

Example 2:

Scenario

A client reports that he qualifies for $400 in UIB and provides a copy of the unemployment check or a statement that benefits would begin on a certain date.

Outcome

The income will be reasonably anticipated.

 

Example 3:

Scenario

A client reports being told at an interview that she got the job.  She is aware of a salary range, but has no other information.

Outcome

This income cannot be reasonably anticipated.

 

Example 4:

Scenario

A client reports starting a new job.  She knows her start date, the anticipated wage amount and expected hours.

Outcome

The worker will consider this income to be reasonably anticipated because the amount could be determined and the date the income will begin is known.  The worker will clearly document in case comments as explained by the client about the start date, expected hours, and wages to substantiate the household’s estimate.

 

Example 4:

Scenario

A client is a waitress and doesn’t earn the same amount each month because of extra shift opportunities or shift cut-backs, but she states on the SAR 7 that the reported Data Month’s income is “typical” and expects to continue.

Outcome

The worker can count that income as reasonably anticipated for the remaining of the certification period.

 

Example 5:

Scenario

A client is a waitress and she never has any regular shifts or hours.  The employer or prior income history substantiates that the income is very irregular and there is no minimum amount of income expected.

Outcome

This income cannot be reasonably anticipated and will not be used to determine the benefit amount for the certification period or remaining months of the certification period.

 

Example 6:

Scenario

A client’s income varies between $200 and $400 a month and the employer can’t confirm the earnings or schedule, but the recipient states that earnings are usually at least $200.

Outcome

The worker will consider $200 as reasonably anticipated income.

 

Example 7:

Scenario

A client’s income varies dramatically.  For example someone who is waiting for an on-call substitute position, who doesn’t know whether there will be any work or any minimum hours.

Outcome

This income cannot be reasonably anticipated

.

 

63-282.6
Changes after the Initial Month of Eligibility

When a household reports accurately and timely to the best of its ability, and the intake worker acts correctly on all available information to reasonably anticipate income and household circumstances, the worker will not establish an overissuance (claim) against a household when a household's circumstances change after benefits have been authorized.

However, inaccurate budgets caused by worker error or a household’s failure to report may constitute an overissuance.

Example 1: The worker knew the household was receiving UIB, yet failed to include it in the budget; this would be an overissuance (Administrative Error).

Example 2: The household reports during the application interview that he applied for UIB but does not know if, and when the first check will be issued.  The worker approves the case and does not budget the UIB.  The client reports the following month that he received the first UIB check the last day of the application month.

Since the household reported the information timely and accurately and the worker acted correctly based on the available information, the budget will not be recomputed (if the income is not over the IRT) until the next Reporting Period.  The worker will not establish an overissuance.

 

63-282.7
Use of Weekly and Bi-weekly Conversion Factors

Whenever a full month’s income is anticipated but is received on a weekly or bi-weekly basis, the income will be converted to a monthly amount in the following manner:

·         Income received weekly will be converted to a monthly amount by adding the four (or five) weekly paychecks together, dividing by four (or five) and multiplying the weekly averaged income by 4.33.

·         Income received bi-weekly will be converted to a monthly amount by adding the two (or three) bi-weekly paychecks together, dividing by two (or three) and multiplying the bi-weekly averaged income by 2.167.

Each paycheck does not need to be the same amount.  However, the household must anticipate that their monthly income will continue and not expect any changes, in order to convert the income into a monthly average.

Example 1:

Scenario

A client reports receiving four checks in the Data Month and explains that one of the checks was higher or lower than usual, but that the other three checks are representative of their weekly income and they expect that amount to continue.

Outcome

The worker can use the conversion factor to convert the three representative weekly paychecks into a monthly average.

In this situation, the conversion factor is applied to the reasonably anticipated income, rather than the Data Month income because the Data Month income is not expected to continue.

 

Example 2:

Scenario

The household receives weekly or bi-weekly paychecks, but their income fluctuates considerably month to month and they cannot reasonably anticipate that their Data Month income will continue at the same amount.

Outcome

The worker will not use the conversion multipliers to convert the Data Month income into a monthly average.

In this case, the worker will accept the household’s estimate of reasonably anticipated income.  If the estimate is questionable, contact the household to determine what monthly income (if any) can be reasonably anticipated.

.

 

63-282.8
Examples: Use of Weekly and Bi-weekly Conversion Factors

X

Example 1:

Scenario

A client reports receiving $200 every week and reasonably anticipates that this income will continue at the same amount for the upcoming semi-annual period.

Outcome

The $200 weekly income is multiplied by the weekly multiplier of 4.33 to determine the average monthly income amount of $866.

If the recipient reports receiving $400 every two weeks, the $400 bi-weekly income is multiplied by the bi-weekly multiplier of 2.167 to determine the average monthly income amount of $866.80

 

Example 2:

Scenario

A client reports that she will work the first three weeks of each month and be paid $200 per week.

Outcome

Since the recipient does not expect to be paid every week, the conversion multiplier will not be used.

The worker will use monthly income of $600 to determine the benefit amount for the certification period or remaining months of the certification period.

 

Example 3:

Scenario

A client reports on her SAR 7 that she received four weekly paychecks in the following amounts: $200, $450, $190, and $225.

She explains that she received extra hours in the second week of the month because a coworker was sick, but the other three weekly paychecks are typical and she expects this income to continue.

Outcome

The worker will disregard the irregular check of $450 and convert the remaining three weekly paychecks into a monthly amount by adding them together, dividing by three, and multiplying the weekly average by 4.33:

$200 + $190 + $225 = $615

$615 / 3 = $205

$205 x 4.33 = $887.65

The reason for disregarding the irregular check must be documented in case comments.

 

Example 4:

Scenario

A client reports on her SAR 7 that four weekly paychecks were received in the following amounts: $115, $100, $135, and $95 and indicates on the SAR 7 that her income is not expected to change during the remaining months of the certification period.

Outcome

The worker will add the four weeks of income together, divide by four and then multiply the resulting amount by 4.33 to arrive at an average monthly income amount for the remaining months of the certification period:

$115 + $100 +$135 + $95 = $445

$445 / 4 = $111.25

$111.25 x 4.33 = $481.71.

If the client reports five pay periods, the worker will add each week together, divide by five, and then multiply the resulting amount by 4.33.

  

Example 5:

Scenario

A client provides two check stubs in the amount of $115 and $350 and states that he gets paid bi-weekly.  He expects this income amount and frequency to continue.

Outcome

The worker will add the two checks together, divide by two and then multiply the resulting amount by 2.167 to arrive at the average monthly income amount for the certification period or remaining months of the certification period:

$115 + $350 = $465

$465 / 2 = $232.50

$232.5 x 2.167 = $503.83

 

Example 6:

Scenario

A client regularly works 35 hours per week at $10 an hour and is paid bi-weekly.

She received three checks in the Data Month of $400, $500, and $700.

She reports that her normal pay checks are $700 every two weeks but she missed work due to a family emergency.  She does not expect taking any additional time off.

Outcome

Since the lower paychecks are not expected to continue, the worker will apply the bi-weekly conversion factor of 2.167 to the normal anticipated bi-weekly pay of $700 to determine the monthly anticipated income for the semi-annual period (i.e.: $700 x 2.167 = $1,516.90).

The worker will also remind the recipient to report when her income is less than expected in order to have her benefits supplemented.

 

Example 7:

Scenario

A client works varying hours depending on when his employer needs him.  He reports receiving three bi-weekly paychecks in the Data Month in the amounts of $600, $900, and $660 and provides copies of the three pay stubs.

He reports that the $900 check was unusually high because he was covering another shift, but that the other two checks are representative of his normal pay.

Outcome

The worker determines this to be correct, excludes the $900 check and calculates an average monthly income by adding the two other checks together, dividing by two, and multiplying the resulting amount by the bi-weekly multiplier of 2.167:

$600 + $660 = $1,260 (leave out irregular $900 check) $1,260 /2 = $630

$630 x 2.167 = $1,365.21

 

Example 8:

Scenario

A client reports on her SAR 7 that she started a job in the Data Month and earned $400. She attaches two weekly check stubs for $200 and states that her income will continue at this amount.

Outcome

The worker understands this to mean that her weekly pay of $200 will continue and this understanding is narrated in the case file.

The $200 is multiplied by 4.33 to determine the recipient’s average monthly income for the remaining of the certification period:

$200 x 4.33 = $866

.

 

63-282.9
Allotment Determination Based on Stable Income

If a recipient or applicant has stable monthly income and does not expect any changes in the upcoming certification or remaining months of the certification period, the income reported on the application, SAR 7, or recertification form will be used to determine the benefit amount for the certification or remaining months of the certification period.  If the stable income is received weekly or bi-weekly the income will be converted into a monthly average as described above.

 

63-282.10
Allotment Determination Based on Fluctuating Income

When the household anticipates fluctuations from their Data Month income, the determination of whether income could be reasonably anticipated will require additional steps and thorough case documentation.

In situations where the recipient expects a change or has fluctuating income, and either cannot or does not provide an estimate of what could be reasonably anticipated, the following guidelines can be helpful in determining (with client assistance) what income, if any, can be reasonably anticipated for the certification period or remaining months of the certification period:

A.   Take into account any changes in income from the Data Month that the household reasonably anticipates for the certification period.

·         If the household reports that they expect changes from the income received in the Data Month, but does not know how much their income will change or when the changes will take place, the Data Month income will be used until the recipient reports a reasonably anticipated change.

·         If the household reports that their income fluctuates significantly month to month, they cannot reasonably anticipate any income, and that in some months they don’t receive any income, barring any information to the contrary, the worker will accept this statement and no income should be budgeted.

·         If the household is unable to estimate future income with the worker’s assistance, the worker, with written authorization from the recipient, may contact the employer or other source of income.

B.  If unable to anticipate income based on the Data Month, the worker may take into account past income received by the household to determine whether or not the Data Month income is representative of the household’s typical pay.  However, past income will not be used as an indicator to anticipate income if changes to the income have occurred or are anticipated.

·         If income fluctuates to the extent that a 30-day period alone cannot provide an accurate projection of future income, the worker may look back to the prior semi-annual period for historical income information.

·         If the household’s income fluctuates seasonally, it may be appropriate to use the most recent season comparable to the certification period, rather than the last semi-annual period.

NOTE: The worker must be very careful when using income from a past season because income may fluctuate from season to season.  The worker will not use past income as an indicator to anticipate income for the certification period if changes in income have occurred or can be anticipated.

C.  If the worker and the household cannot determine an amount that can be reasonably anticipated after following the guidelines listed above, no income will be anticipated.

D.  If the reported information is unclear or questionable, and the recipient refuses to assist in providing required information (e.g., refuses to provide available verification or sign an affidavit) or fails to provide information necessary to determine continuing eligibility, the worker will discontinue benefits with timely notice.

E.   If the recipient is attempting to cooperate to the best of his or her ability, yet is unable to provide information that would assist the worker in determining future income with reasonable certainty, the worker will not consider the household is “failing to cooperate” and will not discontinue benefits for that reason.

Example 1:

Scenario

A client provides a SAR 7 with four check stubs of varying amounts ($50, $150, $75 and $500).  There were five weeks in that month, and for one week, he reports no earnings at all.

He works on call and has no idea when he will be called in to work.

Outcome

The worker reviews the case and confirms that the recipient had periods of no income in the past and calls the client to confirm that this pattern will continue for the certification period.

The worker then carefully documents the basis for being unable to reasonably anticipate any income, and budgets no income for the upcoming SAR period.

 

Example 2:

Scenario

Using the same scenario as above, except that the client reports that he expects to earn at least $150/month.  The worker will accept this statement, unless there is a reason to find it questionable.

The worker will document the basis for using the estimate of $150 or document the reason for using a different amount. (For example: Past earning history shows that the recipient has always earned at least $150, and although there were periods of higher earnings, they were sporadic).

The client is required to report income above IRT in accordance with mandatory requirements and can also voluntarily report mid-period if his income does not reach $150.

 

Example 3:

Scenario

A client reports on her SAR 7 that she is working part-time and her work hours vary from month to month. 

She reports having worked 70 hours in the Data Month of May and states that she is unable to project with any certainty how many hours she will be working each month for the next six months.

Outcome

The worker reviews the case and notes that the recipient has always reported income and during the last recertification she reported working 80 hours in that month.  Therefore, the worker questions whether it is reasonable to use zero income in the calculation of benefits.

The worker calls the client and learns that during the previous six months she has worked between 70 and 80 hours every month.  She is scheduled to work 70 hours a month, but sometimes picks up extra shifts.

Because the recipient is scheduled to work at least 70 hours every month, the worker can reasonably anticipate 70 hours a month.  The other 10 hours are unpredictable and cannot be reasonably anticipated.  

.

 

63-282.11
Contract/Self-Employment Income

Households, who by contract or self-employment derive their annual income in a period of time shorter than one year, will have that income averaged over the certification period, provided the income from the contract is not received on an hourly or piecework basis.

These households may include school employees, sharecroppers, farmers, and self-employed households. However, these provisions do not apply to migrant or seasonal farm workers.

Contract income that is not annual income and is not paid on an hourly or piecework basis will be prorated over the period the income is intended to cover.

Example:

Scenario

A client works at a school cafeteria from the middle of September to the middle of June.

On her June SAR 7 submitted in July she reports that her job ended in the middle of June.

Outcome

The worker reviews the case for prior work information and determines that this recipient always has a break in employment during the summer months. The worker must clarify with the client if she expects her normal job with the school to begin again the following September.

If she does expect her job to resume in September the income she receives from September through June must be added together and divided by 12 in order to come up with a monthly average for the entire certification period.

e.g., she receives $400 in September and June and $800 a month in October through May.

$400+$400+($800 x 8) = $7,200

$7,200/12 = $600

The worker will count monthly income of $600 for each month of the certification period.

.

 

63-282.12
Income Starting and Ending Mid-Period

Income that is starting or ending mid-period is not averaged over every month of the certification period or remaining months of the certification period.

Income that the household anticipates will begin or end in one of the months of the upcoming certification period or remaining months of the certification period will only be counted in the months that the income is reasonably anticipated to be received.  This regulation also applies at application; income received and ending in the month of application will only be used to determine eligibility and benefit amount in the month in which it was received.

Income that is beginning or ending will be treated differently depending on how certain the household is that the income will begin or end.

For example, if the household’s current monthly income is stable, but they heard that they might get laid off soon, the worker will continue to count the income and instruct the household to report when they know for sure and have verification that they will lose their job or report to the County the month their income actually decreases.

Similarly, if a household thinks they will be starting a new job in the next month or so, but are not sure about their start date or hours, the new income cannot be reasonably anticipated and would not be used to determine the allotment.  In this situation, the recipient is required to report the new job mid-period if their income is over their IRT or on their next SAR 7 or recertification, whichever comes first.

If, the household is certain that their income will be ending or new income will be starting in a certain month of the certification period, this income will only be used to determine benefit amounts for the months in which it is reasonably anticipated to be received. The worker will calculate two different benefit levels for the certification period: One benefit amount for the months in which the income will be received and one benefit amount for the months in which the income will not be received.

NOTE:  Public Assistance (PA) CalWORKs benefits will be counted for each month of the certification period when computing the CalFresh allotment.

Example 1:

Scenario

A household submits the October SAR 7 timely on November 8.

She reports starting a part-time job in December that will probably last only until the end of January when the holiday shopping season ends.

She reports that she will get paid $800 in December and January and provides verification.

Outcome

Since the client does not provide verification that the income ends in January, the worker will anticipate and budget $800 for December, January and ongoing and advise the client to report and verify when her job ends.

However, if the client has verification that the job is only for those two months, the worker will budget $800 only for December and January and count no income for February and ongoing.

 

Example 2:

Scenario

A client reports on his SAR 7 that he made $800 in the Data Month.  He is paid weekly and received four weekly paychecks of $200 each. He also reports on his SAR 7 that he believes he will be laid off in the next month or two.

Outcome

The worker will convert weekly pay into a monthly average by multiplying the $200 weekly pay by 4.33 ($200 x 4.33 = $866) and will tell the recipient to report when he gets laid off or when his income decreases.

If the client has proof of a date his job would end, the worker will only count his income in the months the income will actually be received.

 

Example 3:

Scenario

A client reports on his SAR 7 that he will be starting employment sometime in the next six months.  He was told that he will be paid bi-weekly at $8.50/hour and believes it will be for approximately 30 hours a week.

The client is uncertain about the start date.

Outcome

The worker will contact the client to verify details regarding the new employment (start date, first pay date, pay schedule).

If the worker is unable to get this verification, this income will not be included in the budget because the client cannot reasonably anticipate the income.

The recipient must report when income is above the IRT in accordance with mandatory reporting requirements.

.

 

63-282.13
Reasonably Anticipated Expenses

A. MEDICAL AND DEPENDENT CHILD CARE EXPENSES

For medical and child care expense deductions, the worker will determine what the household reasonably anticipates paying over the certification period.  Anticipation of the expense shall be based on the most recent month's bills, unless the household is reasonably certain a change will occur.  Refer to 63-233.4 and 63-253.9.

Medical expenses can be averaged over the certification period, over the remaining months of the certification period, over the billing period, or allowed as a one-time deduction.  Refer to 63-253.

If the expense is reported and verified mid-period, the expense will be determined for the current and remaining months of the certification period.

The worker is required to carefully document how they determined what expenses could be reasonably anticipated for the household.

Example 1:

Scenario

A client reports on the SAR 7 monthly child care costs in the amount of $175, provides the CF 10 as verification and states that she expects this expense to continue.

Outcome

The worker will allow a dependent care deduction of $175 for the remaining months of the certification period based on the amount paid in the Data Month because the expense is reasonably anticipated to continue at the reported amount.

Refer to 63-233, Dependent Care Deduction.

B. LEGALLY OBLIGATED CHILD SUPPORT PAYMENTS

Legally obligated child support payments which is ordered to be paid on a monthly basis to an individual outside the household is considered an “income exclusion” and will be anticipated for the certification period when the CalFresh household member is actually paying it and anticipates paying for the certification period.

Refer to 63-224.15 and 63-284.7.

C. SHELTER COSTS

Shelter costs will be determined at application and recertification and will remain fixed at the determined amount unless the household reports a change.  Refer to 63-284.7B for instructions on worker action on voluntary reports of changes in shelter expenses.

D. FLUCTUATING EXPENSES

Households incurring dependent care or medical expenses that fluctuate from month to month may elect to have the deduction:

·         Averaged over the certification period;

·         Averaged over the interval between scheduled billings when the expenses are billed less often than monthly;

·         Averaged over the period the expense is intended to cover when there is no scheduled interval; or

·         Averaged over the remaining months of the certification period.

E. EXPENSES PAID WEEKLY OR BI-WEEKLY

Medical, dependent care and shelter (rent) expenses paid on a weekly or bi-weekly basis will be converted to a monthly deductible expense by multiplying the weekly or bi-weekly expense by 4.33 or 2.167 as appropriate.  The worker will document in Case Comments the rationale of the determination of the anticipated expense deduction in the case file.

F. MEDICAL EXPENSES REPORTED ONE-TIME ONLY

Households reporting a one-time only medical expense during the certification period may elect to have a one-time deduction or to have the expense averaged over the remaining months of their certification period.

Example 2:

Scenario

A SAR household that includes an elderly/disabled household member has a certification period of January through December.

The household reports on the May SAR 7 a one-time medical expense of $300 incurred in March.  She requests that the expense be averaged over the remaining months of the certification period.

Outcome

The worker will average the expense from the month of April through the last month of the certification period, December:

April through December = 9 months

$300 / 9 = $33.33 monthly medical deduction from April through December.

 

Example 3:

Scenario

Same scenario as above, but the client requests that the medical cost be taken as a one-time deduction.

Outcome

The worker will recalculate the current month’s allotment and issue a supplemental payment for that month.

.