Changes to CalWORKs income disregard and income reporting threshold

The California Department of Social Services (CDSS) has issued guidance regarding changes to CalWORKs income disregards and income reporting threshold (IRT) in SB 80.  Effective June 1, 2020 or when CDSS notifies the legislature that the computer systems have been programmed, whichever is later, the disregard for earned income or disability based income will increase from $225 to $500 and 50 percent of the remaining earned income.  Effective June 1, 2021 or one year from the date the first increase is automated, the earned income disregard will increase to $550. Effective June 1, 2022 or two years from the date the first increase is automated, the earned income disregard will increase to $600.

Effectvie June 1, 2020 or when CDSS informs the legislature that programming is complete, whichever is later, grants will be reevaluated by the county using the new income disregard amount.

There are currently three different CalWORKs income reporting threshold amounts.  Effective June 1, 2020, or when automation is complete, whichever is later, there will only be two income reporting threshold amounts – 55 percent of the federal poverty level for a family of three plus the amount of income last used to calculate the grant, and 130 percent of the federal poverty level, or the level at which a family becomes ineligible for CalFresh.  This change will allow families to earn more income without losing eligibility.

When the family receives income over the IRT and reports it to the county, the county must determine whether the reported income is reasonably anticipated to continue.  If income over the IRT is reasonable anticipated to continue but not at a level that will result in ineligibility, the county must recalculate the grant.

CDSS issued modified notices to reflect the new income disregard and IRT amounts.  (ACL 19-76, August 2, 2019.)

CalWORKs changes to asset and vehicle value limits

The California Department of Social Services (CDSS) has issued information regarding the increase in CalWORKs assets and vehicle value limits in SB 80.  Effective June 1, 2020 or when CDSS notifies the legislature that the computer systems have been programmed, whichever is later, the maximum resource limit for CalWORKs assistance units will increase to $10,000.  The maximum resource limit will increase to $15,000 for assistance units with a member who is 60 years of age or older, or disabled.  Beginning on January 1, 2021, or when CDSS notifies the legislature that the computer systems have been programmed, whichever is later, the resource thresholds will increase by an amount equal to the increase in the California Necessities Index for the most recent fiscal year.

Effective June 1, 2020, or when CDSS notifies the legislature that the computer systems have been programmed, whichever is later the maximum equity value of a car will increase to $25,000 for all applicants and recipients.  Beginning on January 1, 2021, or when CDSS notifies the legislature that the computer systems have been programmed, whichever is later, the maximum equity threshold for cars will increase by an amount equal to the increase in the United States Transportation Consumer Price Index for All Urban Consumers.  Current exemptions for cars will remain in place.

The rules regarding restricted accounts will not change.  (ACL 19-67, July 26, 2019.)

 

Applicant IEVS processing

The California Department of Social Services (CDSS) has issued instructions to counties regarding use of the Applicant Income and Eligibility Verification System (IEVS). Applicant IEVS is a third party verification system that is used at initial application and each subsequent redetermination.  Counties must use Applicant IEVS to assist in resolving any potential discrepancies with what was reported on the application (SAWS 2) and/or in the interview.  These discrepancies must be resolved prior to the beginning of a new certification period.  However, the eligibility determination cannot be delayed pending receipt of Applicant IEVS if other information establishes eligibility.

Counties must request Applicant IEVS information at least 15 days prior to the redetermination interview.  If a county cannot resolve a discrepancy relevant to the eligibility determination, the county must provide the client with a CW 2200 verification letter.

The Applicant IEVS process does not impact the existing Recipient IEVS process for using the IEVS system to determine whether a recipient has earned or unearned income.  Counties should ensure that the client is not asked to provide identical information based on duplicate IEVS information.  (ACL 19-78, August 5, 2019.)

No CalWORKs sanction when meeting federal work participation requirements

The California Department of Social Services (CDSS) has issued instructions implementing SB 1446 (2018).  Effective July 1, 2019, recipients meeting federal participation requirements cannot be sanctioned and are eligible for supportive services.  This applies to recipients who are in sanction status or noncooperation status.

For recipients who are in sanction status and who are meeting federal participation requirements, the sanction is deemed cured and aid is restored the first of the following month.

Recipients who are meeting federal participation requirements at any stage of the noncompliance process shall be found to be compliant with welfare-to-work and the county must stop the noncompliance process.  (ACL 19-68, August 5, 2019.)

CalWORKs grant increase

The California Department of Social Services (CDSS) has issued information to counties about the increase in the CalWORKs grant that will be effective on October 1, 2019.  For Region 1, the Maximum Aid Payment will increase for 1 person assistance units to $550 for nonexempt and $606 for exempt, for 2 person assistance unit to $696 for nonexempt and $778 for exempt with increases continuing for larger assistance units.  For Region 2, the Maximum Aid Payment will increase for 1 person assistance units to $520 for nonexempt and $576 for exempt, for 2 person assistance unit to $661 for nonexempt and $739 for exempt with increases continuing for larger assistance units.  CDSS issued a table showing the grant increase for all assistance unit sizes in each region.

Counties must send a mass mailing to all CalWORKs recipients informing them of the grant increase.

If the grant increase is not automated in the computer systems by the effective date, the computer consortia must issue a workaround to ensure that CalWORKs recipients receive the grant increase.  (ACL 19-73, July 17, 2019.)

Separation of SIU and eligibility determination functions

The California Department of Social Services (CDSS) has issued a reminder to counties that management of eligibility determination and program integrity investigation must be separate.

County Special Investigative Unit (SIU) staff is responsible for preventing and discovering fraud by applicants and recipients.  SIU staff must investigate fraud allegations.  County eligibility workers are responsible for referring cases to the SIU.

The SIU must be a separate organization, independent of organizations performing eligibility and benefit determination functions.  Counties must ensure separate and independent operation of eligibility and investigation activities.  SIU staff cannot dictate CalWORKs or CalFresh eligibility determinations but can make recommendations.  (All County Welfare Directors Letter May 1, 2019.)