44-101 Income

.Purpose

Policy

Background

Release Date:

November 6, 2017

Definitions

Requirements

Verification Docs

GENERAL RELIEF

44-101 INCOME

Purpose

( ) To release a new policy

( ) To release a new form

(X) To convert existing policy to new writing style only – No concept changes

( ) Revision of existing policy and/or form(s)

Policy

Income received by General Relief (GR) participants is treated as follows:

a. After approval, all net income to the General Relief (GR) household is deducted from the GR grant.

b. All income of a legally married, non-aided spouse with whom the GR participant is living, in excess of the spouse’s needs per the GR Basic Budget table, is considered income to the GR household.

c. If any person in the home receives State or Federal public assistance, (e.g., SSI/SSP, CAPI, CalWORKs) none of the income of the public assistance recipient is considered available to meet the needs of the GR household.

d. Applicants who begin receiving income in the application month that will equal or exceed the GR grant may be eligible for emergency aid pending actual receipt of the income.

e. Applicants/participants are responsible for providing information necessary for income determination and for taking necessary action to obtain available income.

f. Income is available if the applicant/participant only has to apply for, claim, or accept the income to obtain it.

g. Examples of available income are:

1. Relative’s offer of a contribution;

2. Unemployment Insurance Benefits (UIB)/Disability Insurance Benefits (DIB); and

3. Supplemental Security Income (SSI)/State Supplemental Program (SSP) or Retirement Survivors Disability and Health Insurance (RSDHI) benefits, including benefits available by appealing SSI/SSP discontinuances and denials.

h. The entire GR household is ineligible if any member of that household refuses to accept or apply for available income.

i. The Eligibility Worker (EW) is responsible for following up with the person(s) and/or the agency where the applicant/participant applied for income benefits.

Refer to 44-108, Responsibilities of the GR Individual for specific requirements for follow-up and verification.

Exempt Income

The following are exempt and not counted as income:

a. Payments for Use of Third Party

Payments made to a GR household exclusively on behalf of another person are exempt (e.g., foster care payments made to a GR participant for the care of a foster child).

b. Payments to meet GR Special Need

Payments up to the GR ceiling made by a third party to meet a GR recognized special need items are exempt. In such cases, the special need is not allowed/budgeted (see example 1).

c. In-Kind Transportation -- Family Emergencies

In-Kind transportation provided for an applicant/participant for attending family emergencies involving critical illness or death is exempt.

d. Rehabilitation Program - Workforce Investment Act (WIA) Funds

Any part of a payment to an applicant/participant from the Department of Rehabilitation or WIA which is used to meet one or more of the following needs is exempt:

1. Tuition;

2. Books;

3. Transportation to/from school/training in the amount claimed by the participant or the cost, as determined by GR 44-237, whichever is less;

4. Tools/equipment required by the study or training program; and

5. Other educational fees.

e. Vocational Rehabilitation Program administered by the County Department of Health Services (DHS)

Any part of a payment to an applicant/participant from the Vocational Rehabilitation Program administered by the County DHS, which is used to meet one or more of the following needs is exempt:

1. Tuition;

2. Books;

3. Transportation to/from school/training in the amount claimed by the participant or the cost, as determined by GR 44-237, whichever is less;

4. Car insurance and motor vehicle registration (Exemption based on applicant/participant’s use of own car because public transportation is not available);

5. Tools/equipment required by the study or training program;

6. License or certification fees;

7. Special clothing (uniforms), cleaning and laundry services; and

8. Meals purchased at training site;

9. Free in-kind meals provided to the applicant/participant at the training site; and

10. Grooming items (not to exceed $5.00 per month) such as haircuts, makeup (including lipstick, mascara, eye shadow, etc.), other essential cosmetics.

11. Other educational fees.

f. Educational Grants/Loans

Any part of the Federal/State student grants/loans designated below which is used to meet one or more of the items in “Exempt School Need Items” below are exempt. For grants/loans not listed, district administrative staff may call the GR and CAPI Policy Section for guidance.

1. Federal/State Student Grants/Loans

i. Pell Grant

ii. Supplemental Educational Opportunity Grant (SEOG)

iii. College Work Study (CWS)

iv. National Direct Student Loan (NDSL)

v. Guaranteed Student loan (GSL)

vi. Cal Grants A, B and C

vii. Graduate Fellowship

viii. Bilingual Teacher Grant

ix. California Loans to Assist Students (CLAS) which are also known as Parent Loans for Undergraduate Students (PLUS)

2. Exempt School Need Items

i. Tuition;

ii. Books;

iii. Educational Fees to include transportation to/from school/training and tools/equipment required by the school/training program;

iv. License or certification fees; and

v. Special clothing if uniforms are required for the school/training program.

g. Personal Loans

The portion of any loan which is used solely to meet the food, housing, or personal care needs of an applicant/participant, subject to the following conditions, is exempt.

1. The amount of exemption is only up to the GR grant amount for the need item for which it is used.

2. Intake – the loan must be received either during the 30-day period immediately preceding the date of application or during the period when the application is pending to meet basic needs that are unmet due to an erroneous denial.

3. Approved – the loan must be obtained to meet basic needs that are unmet due to an erroneous discontinuance or a delay in the receipt of the grant.

h. Income to Victims of Battery or other Violent Crimes

Current income received by the spouse of a battered person/victim of domestic violence is exempt.

Money received by victims of violent crimes through the Victim Assistance Program administered by the State Board of Control pursuant to the California Government Code Section 13959 through 13696 is exempt.

Note: This determination must be made manually.

i. Rent Subsidies

Rent subsidies, received either from government or non-profit agencies are exempt. To be exempt, the rent subsidy must not be payable in the applicant/participant’s name. The rent subsidy must be made payable to the landlord/manager/owner/facility in the name of the GR participant.

After inputting the information, LRS exempts the income.

j. Relocation Benefits

Relocation benefits received from a public agency for relocating from one home to another are exempt. This determination is not a function of LRS and must be manually determined.

k. HUD Mortgage Loans

Mortgage loans received from HUD are exempt. After inputting the information, LRS exempts the income.

l. Disaster Relief Funds

Funds received from government relief programs, including disaster relief funds (e.g., those received as a result of an earthquake) are exempt. This determination is not a function of LRS and must be manually determined.

m. Homeowner/Renter Assistance

Funds received from the State Franchise Tax Board are exempt only if the applicant/participant:

1. Is 62 years of age or older, blind or disabled; and

2. Owned and lived in their own home during the past year or paid $50 or more for rent per month;

3. Has a total household yearly income of $33,132 or less; and

4. Is a U.S. citizen or legal non-citizen.

n. Utility Assistance Programs

Assistance from utility assistance programs for any member of the GR household is exempt.

Note: This determination is not a function of LRS and must be manually determined.

o. Alaska Native Claims Settlement

Cash, stocks, a partnership interest, land or an interest in a settlement trust (including cash dividends on stocks and bonds received from a Native Corporation) to the extent that it does not exceed $2,000 per year is exempt.

Income in Month of Application-Less Than Grant

When income received in the month of application is less than the monthly grant amount, the needs allotments for the period of the month prior to application are prorated.

If the income received in the application month is less than or equal to the prorated needs allotment for the period of the month prior to the application date, then no income is deducted from the prorated grant for the remaining portion of the month (see example 3).

Methods of Apportioning Income to Future Months

When determining eligibility for an employee under an annual contract who works fewer than 12 months, the income from such a contract is apportioned (divided) equally over the period of the contract. Apportionment begins with the first month of the contract and extends through the 12^th month. This applies even though the applicant/participant works fewer than 12 months.

School Employees

School employees may be classified as either “certificated” or “classified.” The “certificated” school employee classification includes teachers, principals, vice principals, and teacher’s assistants. Under this classification, most employees have an individual employment contract. Also, most employees return to their employment when a new school session begins.

The “classified” school employee includes positions such as clerical; employees, cafeteria workers, and education aides. The “classified” school employee is employed only during the school session and does not have an individual employment contract.

The “classified” school employee is not given a guarantee of reemployment at the start of the new year. Return to work is determined by the school district’s needs.

Note: Some “classified” school employees may work 12 months a year in schools with year-round sessions.

Background

N/A

Definitions

Term	Description
System	California Automated Consortium Eligibility System temporarily known as LEADER Replacement System (LRS).
Gross Income	Gross income is the total amount of income before deductions.
Net Income	Net income is the amount remaining after deducting allowable expenses from gross income.
Current Income	Current income is the cash (including loans), food, housing, and other items that are received by and available to the GR household.
Earned Income	Earned income is money or an in-kind payment from employment of any type with the exception of Earned Income Tax Credits (EITC).
Earned Income Disregards	Earned Income Disregards (EID) is the sliding scale amount of an applicant/participant’s earning that is disregarded in calculating the earnings to be deducted from the grant.
In-Kind Income	Any free items such as housing, utilities, or food received by the GR household, are considered in-kind income. Refer to GR 44-115 for details on determining the value of in-kind items. An in-kind income deduction would not apply when an applicant/participant has paid rent prior to applying for GR. In these situations, the full amount of rent paid is allowed as a housing expense.
Income Types	Once it is determined that the applicant/participant has reasonably anticipated gross income, the income can be either: a. Stable income; or b. Fluctuating income.
Months of the Quarterly Reporting (QR) Cycle	The three months are: a. First Month of the payment cycle b. QR Data Month c. QR Submit Month
Prospective Budgeting	Prospective budgeting is the method of computing an aid payment for a QR Payment Quarter using an estimate of the income reasonably expected to be received in that quarter. The estimate is to be based on the knowledge of past and current income and reasonable expectation of future income.
Prospective Eligibility	LRS uses income, including anticipated income, expenses and household information reported on the QR 7-LA to determine initial and continued eligibility and benefit levels.
Voluntary Contributions	Voluntary contributions are any cash (including loans) received by the GR household during the month.

Requirements

N/A

Verification Documents

Category	Acceptable Documents
Rehabilitation Program-Workforce Investment Act Funds	Verification (receipts, letters from the school officials, rehabilitation counselor, etc.) of the school/training allowance received must be provided to document any amount exempted as income. All documents seen by the EW must be entered on the LRS Journal and the amounts exempted for each reason. Verification of the school/training allowance is submitted on the QR 7-LA.
Educational Grants/Loans	Verification (e.g. receipts, letters from the school officials, etc.) of the amount of the student grant/loan received and the exempt school need item for which it was used must be provided. When the EW receives confirmation from the school officials that the school received the grant/loan directly and none of the money will go directly to the GR applicant/participant, no further verification is required. The document(s) provided and the amounts exempted for each reason are recorded on the LRS Journal. Any part of the grant/loan used to meet everyday living needs; e.g., rent, food, etc., are not exempt and are considered as income. Verification of the student/grant is submitted on the QR 7-LA.
Personal Loans	The applicant/participant’s statement on the PA 853, Affidavit, (an out of drawer form) is to include all of the following: a. The amount of the loan; b. The purpose of the loan; i.e., what the money was used for; c. The name of the lender; d. The date the loan was made; and e. The plan for repayment. Note: For approved cases, the loan must be repaid when the GR participant receives the GR grant. If the amount of the loan exceeds the GR grant amount for the need item, the “excess” amount is considered income. (see example 2)
Rent Subsidies	When a rent subsidy is reported, the following actions are taken: a. The name of the agency providing the subsidy, the amount and duration of the subsidy is recorded on the LRS Journal. b. The PA 101-4, Rent Subsidy Verification, (an out of drawer form) along with a postage-paid, return envelope is mailed to the rent subsidy provider. c. A ten workday Task is set for the return of the PA 101-4. d. If the PA 101-4 is not returned within ten workdays, the rent subsidy provider is contacted by phone to obtain information for the PA 101-4. The information is recorded on the case copy of the PA 101-4. e. If the information on the returned PA 101-4 conflicts with the information given by the applicant/participant, the rent subsidy provider is contacted to clarify the information. The clarification must be recorded and any subsequent action taken recorded on the LRS Journal. f. The EW must determine if the rent subsidy is from a government entity or a non-profit. If so, the subsidy is not counted against the GR benefits. g. If the rent subsidy is not from a government entity or a non-profit, it is counted as income.
Utility Assistance Programs	LRS Journal should reflect that the utility assistance document has been reviewed, the amount of utility assistance and the date of receipt. Assistance provided by government agencies or non-profits is not counted as income.
UIB Status	The employment classification of a GR applicant/participant who is a school employee is verified by calling the school district if the applicant/participant does not have documentation to clarify certificated/classified status.