Budgeting

Overview

[EAS 44-313]

Budgeting is the activity used to compute the aid payment for a SAR payment period for which eligibility exists using the net nonexempt income, that is reasonably anticipated to be received in the SAR payment period.

Budgeting is an activity separate from the determination of eligibility. All eligibility factors, including income eligibility are considered on a prospective basis.

Use the income of all the individuals in the family (non-AU and AU members) when determining the eligibility and grant amount for the AU.

Budgeting Methods

Prospective budgeting must be used to compute the CalWORKs grant for each month in a SAR payment period.

Santa Clara County implemented the SAR system effective August 10, 2013. With the implementation of the SAR system, prospective budgeting is the only method of computing an aid payment for a SAR payment period using income that is reasonably anticipated to be received in that payment period, except for those mid-period changes due to a decrease in income where actual income is used. Income from the SAR Data Month, anticipated changes in income from the SAR 7 and mid-period income changes must be considered when determining eligibility and cash aid for a SAR payment period. Documentation must be entered in the Journal Detail page that explains how income was anticipated in determining cash aid amounts.

Budgeting Method at Redetermination (RD)

Assembly Bill (AB) 79 households are no longer required to submit income received in the Data month for RD. This does not change the requirement of reported income in the Data month for the SAR7.

Income verifications at RD is based on income received in the last 30 days. The 30-day period can be determined by the date:

RD packet is submitted; or
Telephonic Signature (TS) interview is conducted; or
Listed on the CW 2200.

Note: The reference of income received in “Data Month” in this chapter is referring to the requirements of the SAR 7 budgeting.

Documentation

Documentation must include, but is not limited to, the following:

Income the client reports that he/she expects to receive in the SAR payment period.
When reasonably anticipated income for the SAR payment period is different than the income that the client reported as received for the SAR Data Month on the SAR 7.
The reasons for not accepting the client’s reasonable anticipated income when the information is questionable.
Other information used, such as verifications, employers’ statements, case history, etc., to determine what income is used in the cash aid amounts if the client’s reasonable anticipated income is not used.

Amount of Aid

The EW is responsible for computing the amount of aid payment when:

Aid is granted or restored.
A redetermination of eligibility is made.
There is a change in need, income, or other factors affecting the amount of aid to which the AU is eligible.

Definitions

Net Nonexempt Income: Is all earned income and disability-based unearned income less applicable disregards, plus unearned income. Round the net nonexempt income from the budget month including in-kind income down to the next lower dollar (i.e., drop the cents).
Grant Amount: Is the amount of cash aid which is to be paid to the AU for a given month.
Potential Grant: Is the subtotal after the net nonexempt income is subtracted from MAP plus special needs for the family. The potential grant may equal the grant amount if the potential grant is equal to or less than the MAP plus any special needs for the AU only.
Income Disregard: Is allowed per family not per individual. The Income Disregard is applied first to the disability based income. The remaining balance of the Income Disregard is then applied to any earned income and 50% of the remaining earned income. These income disregards are applied to the income of AU, non-AU members, the MFG child, and sanctioned persons. [WIC 11008, 11155.3, 11157, and 11451.5]