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Subsidized Child Care Assistance Program Policy Manual Chapter 7. Family Definition and Determining Income Eligibility Revised 08/01/2024

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Refer to the Chapter 7 Attachment 3: Application, Recertification & Base Periods Guide for reference.

2. Special Base Periods Certain types of income require special base periods, particularly if the income is not stable or the income fluctuates. Income that fluctuates significantly should be averaged in such a way that child care assistance will not be interrupted, and the family can anticipate and budget for the parental fee that remains unchanged throughout the eligibility period. This method of calculating income must be used sparingly and carefully.

i. Non-representative income is income from the base period that is received irregularly, has changed, or terminated, and cannot be reasonably expected to be available to the recipient’s household during the certification period.

a. If reported income is not representative, the child care worker must determine which budgeting method is the most representative estimate of the budget unit’s income over the certification period. The child care worker must provide detailed documentation of what was used for representative income and why it was used.

B. Determining Representative Income

The following steps must be used for determining income when non- representative income is in the base period: 1. Explore alternative budgeting methods for averaging income. The child care worker may consider one of the following or other alternative budgeting methods: