44-207 INCOME ELIGIBILITY

(b) If an individual applies for CalWORKs after this three-month period has passed, they shall be considered an applicant for the purpose of determining CalWORKs financial eligibility as described in Section 44207.11.

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Example: A SAR applicant applies for assistance for themself and their one dependent child. The parent (applicant) works part-time for $975 per month. The family is nonexempt and lives in Region 2.

Applicant Eligibility Determination

$ 975 Earned Income

- 450 $450 Earned Income Disregard

$ 525 Total Net Nonexempt Income

$1,242 MBSAC for two

Family passes the MBSAC test (MBSAC is greater than Net Nonexempt Income)

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STANDARDS OF ASSISTANCE

.112 The MBSAC is the amount of money which is necessary to provide a family with the following:

a. Housing.

b. Clothing.

c. Food.

d. Utilities.

e. Items for household operation, education and incidentals, recreation, personal needs, and insurance.

f. Essential medical, dental, or other remedial care not otherwise provided at public expense.

STANDARDS OF ASSISTANCE

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.113 The MBSAC for the family applies in determining financial eligibility for applicants, the value of in-kind income for the AU, the amount of income from a sponsor available to a sponsored non-citizen, the period of ineligibility for non-qualifying withdrawals from restricted accounts and transfer of assets. The MBSAC amounts are set forth in Welfare and Institutions Code Section 11452.

(a) The MBSAC figures are subject to a cost-of-living adjustment on July 1 of every year. These updates to the MBSAC figures are published by CDSS through an annual All County Letter. See the most recent All County Letter available on the CDSS website (http://www.cdss.ca.gov/inforesources/letters-and-notices/all-county-letters) by selecting the link for the most recent year, then select "Ctrl+f" from the keyboard and enter "MBSAC" in the pop-up search box labeled "Find:" within the tool bar. If no MBSAC ACL is located in the most recent year, use the "back arrow button" and select the prior year in sequence and reperform the above search steps.

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.12 When estimating income for eligibility, all relevant information available to the county and the recipient shall be taken into consideration. See Section 44-113.21 for computations.

.2 The following financial eligibility test shall be applied to both applicant and recipient cases.

.21 The AU is financially eligible as follows:

.211 An applicant AU is financially eligible for the SAR/AR/CO Payment Period if the family's combined reasonably anticipated monthly net non-exempt income for the SAR/AR/CO Payment Period, after the income and needs of the family are considered (pursuant to Sections 44-133 and 44-315.3), is less than the MAP for the AU.

.212 A recipient AU will remain financially eligible during the SAR/AR/CO Payment Period if the family’s combined monthly gross income does not exceed the AU’s Tier Two Income Reporting Threshold (IRT) for more than one month of the SAR/AR/CO Payment Period in accordance with Section 44-316.324.

STANDARDS OF ASSISTANCE

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Example 1:

A SAR recipient receives aid for themself and their four children. Also living in the home is the recipient's spouse (unaided stepparent). The stepparent earns $1612 per month from fulltime employment. The parent receives $675 per month in State Disability Insurance benefits. No other income is received by family members. The AU resides in Region 2 and is exempt because the optional stepparent is unaided.

Eligibility/Grant Computation:

$ 675 Disability-Based Unearned Income

- 600 $600 DBI Disregard

$ 75 Net Nonexempt Disability-Based Unearned Income

$1,612 Gross Family Earned Income

- 806 50% Earned Income Disregard

$ 806 Net Nonexempt Income

+ 75 Disability-Based Unearned Income

$ 881 Total Net Nonexempt Income

$1,590 Exempt MAP for Six

- 881 Total Net Nonexempt Income

$ 709 Potential Grant

$1,386 Exempt MAP for AU of Five

$ 709 Potential Grant

$ 709 Aid Payment (Lower of Potential Grant and MAP for AU)

Example 2:

An AR/CO timed-out recipient parent receives aid for their five children. Also living in the home is the recipient's spouse (unaided stepparent). The stepparent earns $1,612 per month from full-time employment. The parent receives $675 per month in State Disability Insurance benefits. No other income is received by family members. The AU is exempt because the stepparent is unaided and resides in Region 2.

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STANDARDS OF ASSISTANCE

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Eligibility/Grant Computation:

$ 675 Disability-Based Unearned Income

- 600 $600 DBI Disregard

$ 75 Net Nonexempt Disability-Based Unearned Income

$1,612 Gross Family Earned Income

- 806 50% Earned Income Disregard

$ 806 Net Nonexempt Earnings

+ 75 Disability-Based Unearned Income

$ 881 Total Net Nonexempt Income

$1,590 Exempt MAP for Six

- 881 Total Net Nonexempt Income

$ 709 Potential Grant

$1,386 Exempt MAP for AU of Five

$ 709 Potential Grant

$ 709 Aid Payment (Lower of Potential Grant and MAP for AU)

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.22 Net Nonexempt Income

.221 Net Nonexempt Income is gross income for the AU and other family members (if applicable), minus all applicable income exemptions (listed in Section 44-111) and income disregards (listed in Section 44-113).

(a) Gross income includes: 1) earnings by part-time student applicants; and 2) current child support payments collected by the county.

.23 Once financial eligibility is established for the SAR/AR/CO Payment Period, financial eligibility continues for the AU for the entire SAR/AR/CO Payment Period unless the family’s income exceeds the IRT (see Section 44-316.324) and the family's reasonably anticipated gross monthly income continues to exceed the Tier Two IRT for the AU for more than one consecutive month.

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STANDARDS OF ASSISTANCE

.24 If CalWORKs is discontinued because the monthly reasonably anticipated income is expected to result in financial ineligibility for the SAR/AR/CO Payment Period and the AU reports that the monthly reasonably anticipated income will no longer exceed the Tier Two IRT for the AU prior to the effective date of the discontinuance, the county shall rescind the discontinuance if the county determines the updated report is a reasonable estimate.

.25 Adding Persons to the Assistance Unit

When adding persons to an existing AU, the AU is subject to the recipient financial eligibility test.

NOTE: Authority cited: Sections 10553, 10554, 11450, 11450.025, and 11453, Welfare and Institutions Code. Reference: Sections 10553, 10554, 11017, 11157, 11255, 11265.1, 11265.2, 11265.3, 11280, 11322.64(f), 11450.025, 11450.5, 11450.12, 11450.13, and 11451.5, Welfare and Institutions Code; 45 CFR 206.10(a)(1)(vii); 45 CFR 233.20(a)(2)(i) and (xiii); (a)(3)(ii)(F), (a)(3)(vi)(B), (a)(3)(xiv), and (a)(3)(xiv)(B); and Darces v. Woods (1984) 35 Cal. 3d 871; Petrin v. Carlson Court Order, Case No. 638381, May 12, 1993; Rutan v. McMahon, Case No. 612542-L (Alameda Superior Court) February 19, 1988; Letter from Department of Health and Human Services (DHSS), December 5, 1990; Johnson v. Carlson Stipulated Judgment; Ortega v. Anderson, Case No. 746632-0 (Alameda Superior Court) July 11, 1995; Federal Terms and Conditions for the California Assistance Payments Demonstration Project as approved by the United States Department of Health and Human Services on October 30, 1992; Federal Terms and Conditions for the California Work Pays Demonstration Project as approved by the United States Department of Health and Human Services on March 9, 1994; United States Department of Health and Human Services, Office of Family Assistance, Aid to Families with Dependent Children Action Transmittal No. ACF-AT-95-10 dated September 19, 1995; and Letters from the Department of Health and Human Services, Administration for Children and Families, dated February 29, 1996, March 11, 1996, and March 12, 1996.

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STANDARDS OF ASSISTANCE