The California Department of Social Services (CDSS) has issued guidance regarding calculating CalFresh overissuances. This guidance supersedes ACL 15-95 for CalFresh overissuances.

When determining the amount of a CalFresh overissuance, counties must recreate the circumstances of the case, that is they must calculate the amount of the overissuance by determining the difference between the amount of benefits the household should have received and the amount the household actually received. The county must not consider income changes that the household was not required to report unless the change would result in increased benefits.

Households are required to report income that exceeds the Income Reporting Threshold, that is 130 percent of the Federal Poverty Level.  This reporting is required at any time, including between semi-annual reports.  Households that are eligible for CalFresh with income between 131 and 200 percent of the Federal Poverty Level are not required to report income changes between semi-annual reports.

In determing whether a household has exceeded 130 percent of the Federal Poverty Level, the county must use the household’s actual gross income.  Counties cannot use the conversion factor (4.3 times weekly earnings) to determine if a recipient has missed a required report of income over the Income Reporting Threshold.

If a household misses a required report of income over the Income Reporting Threshold, the county must recalculate the monthly allotment for the months in which the household income exceeded the Income Reporting Threshold, and establish any appropriate overissuances.

Counties are required to review information they receive from the Income Eligibility Verification System (IEVS).  When the county receives an IEVS match and determines there is a potential discrepancy between the match and the income the household reported, the county must ask for information from the household to verify the IEVS match.  If the household does not respond, the county can use the Work Number or another third party payroll source to verify the IEVS match.  Counties can only request verification related to an IEVS discrepancy that shows the client may have missed a mandatory report of income over the Income Reporting Threshold.

When reconciling IEVS matches, counties must consider prospective budgeting rules, including whether the income could have been reasonably anticipated at the time of the previous semi-annual report or annual recertification.

If benefits should have been different based on income verified after an IEVS match, the county must recalculate the monthly allotment for the months in which the household income exceeded the Income Reporting Threshold, and establish any appropriate overissuances.

When calculating the amount of an administrative error overissance, the county must apply the earned income deduction.  When calculating the amount of an advertent household error or Intentional Program Violation overissance, the county must not apply the earned income deduction.  (ACL 24-23, March 29, 2024.)