New rule for CalWORKs treatment of guaranteed income

The California Department of Social Services has provided guidance about new rules for about counting Guaranteed Income (GI) payments as income for CalWORKs.  A GI payment is one or more unconditional cash payments issued from a program intended to support the basic needs of recipients and disrupt poverty.  An unconditional payment means that there are no restrictions on how GI participants use that money.

GI payments are now exempt from being considered income or resources for CalWORKs. Counties must exempt any direct GI payments made to CalWORKs applicants and for recipients at Semi-Annual Report (SAR 7), annual redetermination, or when reported to the county

CalWORKs applicants must submit a verification form for GI participation, SAR 7 and annual redetermination. Verification can include but are not limited to, award letters, and bank statements. Counties are encouraged to inform GI programs and their participants of verification requirements. If GI recipients are having problems verifying GI income, counties can contact the GI programs on their behalf by obtaining a release of information.

CalFresh income exemption policy is unchanged. Direct payment from GI programs are exempt from being considered income when the payment contains any amount of non-governmental funds. Payments from GI programs that do not contain any amount of non-governmental funds are considered income for CalFresh.

Verification is needed for CalFresh intercountry transfers, childcare, and Tribal TANF.  Award letters used for verification should include a statement about whether there are any non-governmental funds used for each direct payment.  GI payments which are determined exempt from being considered income for CalFresh do not require additional verification. If the county cannot determine if the GI income is exempt, the county must use documentary evidence as the primary source of verification. Collateral contacts or a written sworn statement may be used when documentary evidence cannot be obtained or is insufficient to determine if the GI income is exempt.

When a GI program participant moves to another county and continues to receive GI payments, any GI payments that were exempt in the sending county must continue to be exempt in the receiving county.  (ACL 24-09, February 28, 2024.)

Increase in CalWORKs resource limit

Effective January 1, 2025, the CalWORKs resource limit for applicants and recipients will increase to $12,137, and to $18,206 for an assistance unit with at least one member who is over 60 or disabled.  This increase also applies to Refugee Cash Assistance, Entrant Cash Assistance, and Trafficking and Crime Victims Assistance Program.

Rules about CalWORKs restricted accounts are unchanged.  (ACL 24-54, August 2, 2024.)

 

Subsidized child care income ceiling

The California Department of Social Services (CDSS) has issued a new Schedule of Income Ceilings for subsidized child care.  The schedule applies to direct service and voucher-based child care and development contracts administered by CDSS.  The updated schedule is used to determine income eligibility for state subsidized child care and development programs, and priority for enrollment in those programs.  The new schedule is to be used effect8ve July 1, 2024.

Contractors must enroll families into CDSS administered subsidized child care in priority order.  First priority is neglected or abused children who are in child protective services, or who are at risk of being abused and neglected with a written referral from a medical, legal or social services agency.

Second priority is income eligibility, with lower income families receiving higher priority.  If two or more families have the same priority, a family with an exceptional needs child is admitted first.  Families with a primary lowest income receive the highest priority.  Families who used a primary language other than English also have second tier priority.

Families who receive means tested government benefits (CalWORKs, CalFresh etc) must be prioritized based on the income they state on their application for the means tested government program.

The Income Ranking Table does not apply to CalWORKs Stages One, Two, or Three child care. (CCB 24-12, July 1, 2024.)

IHSS advance pay reconciliation and overpayments

Severely impaired In Home Supportive Services (IHSS) recipients can receive an advance payment for their monthly authorized IHSS services and pay their providers directly.  Recipients who get advance payment must submit reconciling timesheets by the end of the month.  If the recipient fails to submit a reconciling timesheet within 45 days of the issuance date of the advance payment, there is a rebuttable presumption that the unreconciled amount is an overpayment.  Counties should help recipients with reconciliation.

Counties should determine which part of the advance payment is an overpayment because of failure to reconcile.  Any portion of an advance payment that is not used to purchase IHSS services is an overpayment.  If timesheets are not reconciled, but the county determines that the advance pay amounts were used to purchase IHSS services, there should not be an overpayment and the county can consider the timesheets to be reconciled.

Failure to submit a time sheet within 90 days of the date of payment allows counties to change a recipients payment method from Advance Pay to payment in arrears.

If a recipient is deceased, the county can consider the Advance Pay amount reconciled.  (ACL 24-38, June 6, 2024.)

CalSAWS system changes to support changes in foster care referrals for child support

The California Department of Social Services and the California Department of Child Support Services have discussed several possible changes to the CalSAWS computer system to help implement changes regarding foster care referrals for child support.

However, despite the fact that no CalSAWS system changes have been made, the only foster care related child support cases that can be referred to the local child support agency are when a parent’s annual income is more than $100,000, or 400 percent of the federal poverty level, whichever is greater, and referral will not be a barrier to reunification.  All foster care related child support collection efforts should stop unless this exception is met.  (ACIN I-07-24, February 16, 2024.)

Foster Care child support arrears

The California Department of Child Support Services instructs local child support agencies (LCSAs) to review all cases with foster care arrearages.  If the annual income of the parent ordered to pay support is less than $100,000, or 400 percent of the federal poverty level, whichever is greater, the LCSAs must deem the arrears uncollectable and remove them.

If the annual income of the parent ordered to pay support is less than $100,000, or 400 percent of the federal poverty level, and any of the dependent children are still receiving foster care services, the LCSA must ask the welfare department whether continued enforcement would be a barrier to reunification.

If there are no dependent children still receiving foster care services and the annual income of the parent ordered to pay support is less than $100,000, or 400 percent of the federal poverty level, the case will not be reviewed for relief from foster care arrears.

Collections made prior to the collectability determination and removal of arrears will not be refunded.  (CSSP Letter 23-02, October 23, 2023.)