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Purpose
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( ) To release a new policy
( ) To release a new form
( ) To convert existing policy to new writing style only – No concept changes
(x) Revision of existing policy and/or form(s)
What changed?
This year’s Cost-of-Living Adjustment (COLA) increases the Minimum Basic Standard of Adequate Care (MBSAC) levels by 4.32 percent, effective July 1, 2024. These changes were programmed in the system on June 13, 2024.
The Maximum Aid Payment (MAP) levels effective October 1, 2023, remain unchanged. Refer to 44-315 CalWORKs Maximum Aid Payment Levels for detailed information about the MAP levels.
Note: Changes are shown highlighted in grey throughout the document.
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Background
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In accordance with the Welfare and Institutions Code 11453, MBSAC levels are to be adjusted annually to reflect any increases or decreases in COLA.
As a result of Senate Bill 80 (Chapter 27, Statutes of 2019), the CalWORKs Recipient Earned Income Disregard (EID) for recipient cases was increased as follows:
a. $225 to $500 effective June 1, 2020;
b. $500 to $550 effective June 1, 2021; and
c. $550 to $600 effective June 1, 2022.
In addition, effective July 1, 2022, Assembly Bill 135 increased the Applicant EID for CalWORKs applicants from $90 per each employed person to $450 per each employed person.
Refer to 44-111.23 Earned Income Disregard policy for detailed information about the Applicant and Recipient EID.
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Definitions
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Term
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Description
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MBSAC
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MBSAC is a measure of neediness and is set by California State law. It is based on the size of the applicant family (Attachment I).
MBSAC is the amount necessary to provide an Assistance Unit (AU) with the following:
1. Housing;
2. Clothing;
3. Food;
4. Utilities;
5. Items for household operation, education, incidentals, recreation, personal needs, insurance; and
6. Essential medical/dental or other remedial care not otherwise provided at public expense.
MBSAC is used in the Applicant Financial Eligibility Test.
MBSAC is also applied to the period of ineligibility for non-qualifying withdrawals from CalWORKs restricted accounts.
MBSAC is a measure of neediness and not the amount of cash aid a family may receive. CalWORKs payments are based on MAP levels.
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Applicant Financial Eligibility Test
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The Applicant Financial Eligibility Test is used to determine financial eligibility for CalWORKs applicants. The family’s income (minus the first $450 Applicant EID of gross earned income for each employed person, effective July 1, 2022) must be less than MBSAC for the AU.
The system applies the Applicant Financial Eligibility Test to all applicant cases.
Reminder: CalSAWS is programmed to determine eligibility for a 60-day period and is able to recognize ineligibility for the month of application and eligibility for the second month of application which constitutes a 60-day period. For further details, review Administrative Release 40-103.3 Application.
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Income-In-Kind (IIK)
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Need items received in full at no charge with no obligation to repay in cash are considered IIK.
IIK is considered for benefits which are deemed as basic need items and include:
1. Housing;
2. Utilities;
3. Food; and
4. Clothing.
When a family receives a basic need item in full at no charge or in exchange for something other than cash, the value of the need item is considered income in the CalWORKs Eligibility Determination and Benefit Calculations (EDBC).
Note: Partial payments for In-Kind need items are not counted in the calculation of the grant.
The IIK values vary with the AU size and need item. These values are adjusted by the same percentage increase or decrease that is applied to the MBSAC levels and are effective at the same time as a result of COLA.
The AU can also establish a lower value for the need item. Refer to 44-115 Income-In-Kind policy for additional information regarding IIK.
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Region 1
4.32 percent MBSAC Payment Standards and IIK Values
07/01/24-06/30/25
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IIK Values
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AU Size
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MBSAC
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Housing
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Utilities
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Food
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Clothing
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1
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$899
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$408
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$86
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$223
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$68
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2
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$1,476
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$541
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$99
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$477
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$132
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3
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$1,829
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$593
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$102
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$611
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$197
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4
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$2,170
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$624
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$107
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$755
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$263
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5
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$2,476
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$624
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$107
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$916
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$335
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6
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$2,785
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$624
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$107
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$1,059
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$401
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7
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$3,061
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$624
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$107
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$1,181
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$468
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8
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$3,331
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$624
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$107
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$1,288
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$520
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9
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$3,614
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$624
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$107
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$1,418
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$598
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10
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$3,922
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$624
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$107
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$1,534
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$655
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More than 10
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Add $35 for each extra person
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Region 1 and Region 2 Counties
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There are two levels of MBSAC, IIK, and MAP that are assigned to California counties known as Region 1 and Region 2. The Region is determined based on the lower or higher cost of living. Region 1 is for counties with a higher cost of living and the MBSAC, IIK, and MAP levels are approximately 5.2 percent higher than the Region 2 levels.
Region 1 includes the following counties: Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, and Ventura.
Region 2 includes all other counties.
Los Angeles County DPSS staff should be aware of the Region 1 and Region 2 levels when processing Inter-County Transfer cases from Region 2 counties. Refer to Attachment I for Region 1 and Region 2 charts.
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