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For Change Reporting Households: All changes are effective October 1, 2006.

For Quarterly Reporting Households: Changes are treated as county-initiated mid-quarter actions per Manual of Polices and Procedures (MPP) section 63-509(h) and are effective October 1, 2006, with the exception of the restricted accounts. The provision for restricted accounts requires a review of each case with each QR 7 received on or after October 1, 2006 or with each recertification required on or after October 1, 2006.

MASS CHANGE NOTICING

A mass change informing document (enclosed as Attachment B) may be sent to all households in accordance with MPP 63-504.39 prior to the implementation date of October 1, 2006. CWDs have the option of sending individual notices to households or using the mass change informing document to notify households of potential changes to their benefits.

The following sections provide more detail for each regulation/policy change.

LEGALLY OBLIGATED CHILD SUPPORT PAYMENT EXCLUSION

Legally obligated child support payments to a non-household member are now treated as income exclusions rather than deductions per MPP 63-502.2(p). As an exclusion, the amount of legally obligated child support paid is deducted from gross income before applying the gross income test and prior to computing net income.

SIMPLIFIED TREATMENT OF RESOURCES

A resource exclusion is established at MPP 63-501.3(r) for restricted accounts as defined in the Eligibility and Assistance Standards Manual at MPP 89-130. Basically, a household shall be allowed to retain cash reserves totaling up to a maximum of $5,000 in one or more restricted accounts at a financial institution. The funds are in addition to the existing $2,000/$3,000 resource limits currently allowed in the FSP. The funds must be retained for one or more specific purposes to be excluded as a resource: purchase of a home, education or training, and start-up of a small business. Refer to MPP 89-130 for more specifics regarding separate accounts, interest exemptions and withdrawals.

SIMPLIFIED TREATMENT OF INCOME

Certain types of income that are not counted under the CalWORKs Program will be excluded from consideration when food stamp eligibility determinations are made and when computing food stamp benefits. MPP 63-502.2(q) has been added to regulations to provide for exclusions as listed in MPP 44-111; with the exception of sections MPP 44-111.23 (CalWORKs budgeting) and MPP 44-111.43 (student loans and grants), which have not been adopted.