Page 168

Page | 167 8705.5 Exceptions for Contract Income When the other party to the contract cannot or will not make payments specified in the contract; or when labor disputes interrupt the flow of earnings specified in the contract, then the income is no longer considered contract income and is budgeted as received just like any other income.

Example: Mary signed a contract for 9 months as a food service worker. The contract states she will receive $10,800 in monthly installments over a 9 month period. This is Mary’s only source of income and is intended for her annual support. Mary receives $1,200 each month. In the third month of her eligibility Mary reports that her employer is reducing her pay if she misses work. This income is no longer considered contract income and should be counted as income received.