CalWORKs WTW counting of self-employment time

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On October 1, 2022, the Welfare-To-Work (WTW) changes adopted by Assembly Bill (AB) 461 (Chapter 582, Statutes of 2021) came into effect.  AB 461 changes how self-employed hours are calculated for a CalWORKs WTW member. Starting October 1, 2022, self-employment participation hours are calculated based on the number of hours the participant self-reported as being self-employed. These hours may be reported verbally, through a written self-assessment, timesheet, estimated hours for previous months, a business plan, or other means.

Counties can no longer requires participants to report their income to determine hours of participation in self-employment, and WTW participants may self-report any hours spent on activities related to their business to meet hourly requirements. In the case of non-subsidized employment, the participant may be self-employed if they have the income to support the hours, otherwise, they will follow the regular WTW stream to participate in self-employment. WTW participants who are self-employed as salespeople count all hours spent promoting their business or trying or contacting potential or actual customers as hours worked.

If the participant’s business is not generating income, the County should discuss what the business needs to be successful so that the member can support their family and reduce the need for support. Clients interested in becoming self-employed can explore the CalGOLD website to learn more about required licenses, permits, forms, and fees.

WTW participants must comply with all of the same applicable business licensing, permits, and tax reporting requirements as any other business operating in their locality. For more information, they should visit the California Department of Revenue website.

The county does not need to verify that WTW participants have received all legally required business documents or documents to conduct their business. Self-employment and support services are available to as needed for self-employed participants. Counties are encouraged to provide case management for self-employed members.

The CalWORKs County Plan and regional market rates govern transportation. Members may use their own vehicles if public transportation is not available, but the county cannot set a limit on monthly reimbursement.

Counties may provide the tools, clothing, fees, etc. that the participant needs to run their business as supportive services.  Licensing, permitting, and other fees and expenses necessary for self-employed participants to comply with local operating requirements are allowable as an ancillary supportive service. However, counties are not required to pay all of the participant’s expenses when starting the business. Counties may consider renting or leasing equipment to meet member needs if purchasing equipment is too expensive.

Self-employed participants may deduct 40 percent of their gross self-employment income, or reasonably anticipated self-employment expenses, from their gross income when determining eligibility and at each re-determination.

While limiting necessary support services is prohibited, counties may require a secondary review by a supervisor prior to issuing a supportive services payment.

MPP Section 42-750.42 requires county to inform members of changes to transportation arrangements and additional ancillary services at least ten calendar days in advance of the proposed change, except in emergencies or exceptional situations.

CalWORKs calculates work participation rates based on self-employment income divided by the federal minimum wage. Additional activities outside regular business hours are reported accordingly, depending on the type of activity.

For income reporting, CalWORKs recipients must report income during the semi-annual reporting period, annual redetermination, or any time their income exceeds the income reporting threshold.  (ACL 22-80, October 14, 2022.)

CalFresh race/ethnicity, sexual orientation and gender identity data

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The California Department of Social Services has issued a reminder to counties to submit the CalFresh Participants by Race/Ethnicity Federal-Only and Combined Households (CF 358F) and CalFresh Participants by Race/Ethnicity State-Only Households (CF 358S) reports. These reports will provide the county and state entities with information needed for budgeting, staffing, and program planning. The CF 358F annual report contains statistical information on the number of federal and federal/state combined households participating in CalFresh during the month of July. The CF 358S report contains statistical information on the number of state households participating in CalFresh during the month of July.

The CF 358F and CF 358S annual reports incorporate the racial and ethnic data collection and reporting requirements for Supplemental Nutrition Assistance Program (SNAP). County Welfare Department (CWD) are responsible for ensuring that the report is fully and accurately completed. The report’s statewide and county specific data is available on the CDSS, Research and Data Reports (RADR) website. Counties are encouraged to review their data on the website to confirm that the county’s data coincides with the data on file at CDSS.  (ACIN I-61-22, September 1, 2022.)

Treatment of Racial Equity Implicit Bias Initiative focus group payments

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The California Department of Social Services (CDSS) has provided guidance to County Welfare Departments regarding treatment of the Racial Equity and Implicit Bias (REIB) Initiative focus group payments. The focus groups will provide a unique client perspective and equity challenges.

CDSS is working with community partners to develop a trauma-informed, anti-racist, anti-stigma county training framework for the CalWORKs and CalFresh programs. This framework will promote positive outcomes for child and family health and well-being.

Community partner Parent Voices is working with consultant Anavo Solutions to convene a Community Advisory Committee comprised of nine community members. Participants in the Parent Voices Community Advisory Committee (PV-CAC) will receive a $1,000 stipend. The PV-CAC will operate and support a focus group of CalWORKs and CalFresh recipients.  Members of this focus group will receive $75 gift cards.

The $1,000 stipend is considered a lump sum payment and not income for CalWORKs or CalFresh.  The $1,000 stipend is a resource in the month received.  The $75 gift card is exempt from being considered a resource.

For CalFresh households subject to a resource test, both the $1,000 stipend and the $75 gift card count as a resource in the month received.

The PV Focus Group $75 Visa gift card is not countable as income for Modified Adjusted Gross Income (MAGI) Medi-Cal and Non-MAGI Medi-Cal. The $1,000 stipend would be counted as taxable income for MAGI Medi-Cal, which means it is counted in the month received as a one-time lump sum payment. (September 20, 2022)  For Non-MAGI Medi-Cal, the $1,000 payment is income in the month received and property in the month following the month of receipt.  (ACWDL, September 20, 2022.)

Treatment of CalKIDS accounts

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In 2019, the passage of SB 77 provided one-time state funding to create CalKIDS, a qualified scholarship program. It opens a college savings account for every newborn child in California regardless of income. CalKIDS will provide an initial seed deposit of at least $25 in each savings account and other potential financial awards to participants. In 2021, the passage of the American Rescue Plan Act significantly expanded the program to include an additional 3.7 million low-income public school students in grades 1 through 12 who qualify for free or reduced lunch, are homeless, or are in foster care. Eligible students receive an initial seed deposit of $500. Later in 2021, CalKIDS clarified eligibility to include students attending state special schools.  The CalKIDS expansion was implemented on July 1, 2022. 

College Savings and CalKIDS Accounts allow families to save and invest money for their children’s future higher education expenses. Savings withdrawn from a CSA program that utilizes a 529 college savings account, such as CalKIDS, are not subject to federal or state taxes if they are used for qualified higher education expenses. 

Because CalKIDS Accounts are owned by the State and are not available to the Assistance Unit (AU) are not counted as income or resources for CalWORKs purposes. Any funds, including funds deposited and investment returns, originating from a CalKIDS account will not be considered in the eligibility determination or grant calculation for CalWORKs applicants or recipients. 

CalKIDS Accounts are entirely excluded as income or resources for the CalFresh and California Food Assistance Program CalKIDS shows accounts must be excluded from income and resources entirely. 

CalKIDS does not count as income for CalWORKs Homeless Assistance Program (HA) and the CalWORKs Housing Support Program (HSP) because they are CalWORKs programs.  CalKIDS also does not count as income when determining eligibility for assistance provided by other Housing and Homelessness Programs, including Project Roomkey/Homelessness COVID Response, Bringing Families Home, and the Housing and Disability Advocacy Program.

CalKIDS accounts do not count as income for CalWORKs Stage 1 Child Care.  For other child care programs,  CalKIDS accounts are not considered countable income because they are owned by the state.. CalKIDS funds that are withdrawn and not utilized for educational purposes may be considered countable income if not excluded on some other basis.

The impact of CalKIDS on RCA/ECA and TCVAP follows the income and assets eligibility and administration rules of the CalWORKs program unless specifically superseded by RCA regulations. The eligibility criteria for ECA and TCVAP Cash Assistance states benefits shall be the same as those for RCA, with certain exceptions. These CalWORKs regulations regarding the treatment of CalKIDS accounts and funds also apply to RCA, ECA, and TCVAP recipients.

CalKIDS accounts are not counted as a resource for SSI/SSP or CAPI because they are owned by the state.  Distributions that are used for educational expenses of the designated beneficiary are excluded as a resource in the month received, and if retained beyond the month of receipt, they are excluded for 9 months beginning with the month of receipt. However, since the funds will be distributed directly to the higher education institutions on behalf of the participants to pay for qualifying higher education expenses and not retained by the beneficiary, the distributions will likewise not be considered a resource to the beneficiary.  (ACL 22-79, October 4, 2022.)

COVID-19 CalFresh emergency allotment for October, 2022

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California has been approved to issue an emergency allotment of CalFresh for October, 2022.  All households will receive at least the maximum CalFresh allotment.  Households eligible to receive the maximum allowable allotment based on household size are now eligible to receive an emergency allotment of $95 per month. Households who are not eligible to receive the maximum allowable allotment based on household size, but whose emergency allotment would be less than $95 per month to receive the maximum allotment, will receive additional CalFresh benefits to raise their emergency allotment to the $95 minimum.

The emergency allotment will be issued on November 20, 2022 for CalWIN counties and November 27, 2022 for CalSAWS counties.

Moving forward, emergency allotments may be approved by FNS on a month-to-month basis until the Secretary of Health and Human Services rescinds the public health emergency.  There will be a one-month phase out of emergency allotments after the public health emergency is rescinded.  (ACWDL, October 11, 2022.)

Cuban and Haitian Entrant eligibility for benefits programs

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The California Department of Social Services has issued information regarding eligibility of Cuban/Haitian entrants for public benefits programs. 

Cuban/Haitian entrants may be eligible for Entrant Cash Assistance (ECA),. This refers to federally funded cash assistance available to those who do not meet the categorical requirements of other state/federal cash assistance programs. ECA follows the rules of the Refugee Resettlement Program. ECA applicants are not required to have a Social Security Number.

Cuban/Haitian entrants can be eligible for CalWORKs upon entry into the United States.  They must submit proof of applying for a Social Security Number within 30 days or have good cause for not applying for a Social Security Number.  Cuban/ Haitian Entrants who apply for or receive CalWORKs must be eligible for Homeless Assistance or the Housing Support Program (HSP). Cuban/Haitian Entrants can be eligible for Project Roomkey, the Bringing Families Home (BFH) program, the Housing and Disability Advocacy Program (HDAP), and/or the Home Safe program if they otherwise meet the eligibility requirements for each program.”

Cuban/Haitian entrants can be eligible for CalFresh immediately without a waiting period. Non-citizens who are eligible based on immigration status must meet all other requirements. These individuals are not eligible for the California Food Assistance Program while Entrant status is in effect because they are eligible for CalFresh.. 

Cuban/Haitian Entrants who are aged, blind, or disabled and meet income limits, may be eligible for SSI/SSP. Entrants are eligible for SSI for seven years. A Cuban/Haitian Entrant who is found ineligible for SSI because of their immigration status can be eligible for CAPI.

Cuban/Haitian Entrants who become eligible for ECA must meet work registration requirements.  Cuban/Haitian Entrants who do not have work authorization should be enrolled in services to help achieve self sufficiency.   (ACIN I-63-22, September 20, 2022.)