CalWORKs overpayments during COVID-19

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The California Department of Social Services has issued reminders of CalWORKs overpayment policies in consideration of COVID-19.  In recognition of the pace of policy changes, and the impact COVID-19 had on county operations and CalWORKs recipients’ inability to complete required reports such as gross monthly income over the IRT, counties must consider these circumstances when establishing overpayments as it is very likely there will be an increase in administrative error overpayments beginning with April, 2020.

Federal individual stimulus payments are excluded from counting as income in the month of receipt and as an asset for 12 months following receipt.

Semi-annual reporting was suspended for March, April, and May, 2020.  However, assistance units who did not make mandatory mid-period reports may be subject to overpayments.  Mandatory mid-period reports are income exceeding the income reporting threshold, fleeing felon status, violation of conditions of probation or parole, and address change.  Unearned income must be paired with earned income to be considered over the income reporting threshold.  Failure to report an address change cannot be based on failure to report an address change.

The $600 per week Pandemic Unemployment Compensation provided through July 31, 2020 is exempt from being considered income for recipients, but not for applicants.  If a family had Pandemic Unemployment Compensation in its possession when they applied and it was not used in determining eligibility there could be total ineligibility and an overpayment.

The Lost Wage Assistance Program issued for the period July 26, 2020 to September 5, 2020 does not count as income for CalWORKs because it is Stafford Act disaster benefits.

Administrative Error overpayments are caused when the county has all information in its possession necessary to make a correct grant determination.

For current CalWORKs recipients, collection can be made by grant adjustment, offset of an underpayment with the overpayment, action on a civil judgment, voluntary cash recovery and voluntary cash offset.

For former CalWORKs recipients, the county cannot demand collection of a nonfraudulent overpayment if the balance is less than $250.  When the claim is more than $250, collection can be made by action on a civil judgment, voluntary cash recovery and voluntary cash offset. (ACIN I-14-21, February 17, 2021.)

Housing supplement to the Transitional Housing Placement for Non-minor Dependents program

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The California Department of Social Services (CDSS) has issued about the new housing supplement for Transitional Housing Placement for Non-minor Dependents (THP-NMD).  The Housing Supplement will be implemented in CalWIN counties beginning July 1, 2021, and September 1, 2022 for counties using the CalSAWS computer system.

NMDs who are not custodial parents are eligible for the Housing Supplement if the difference between the fair market value for one-half of a two bedroom apartment in the county where the NMD resides is more than 21.45% of the statewide THP-NMD rate.  NMDs who are  custodial parents are eligible for the Housing Supplement if the difference between the fair market value for a one-bedroom apartment in the county where the NMD resides is more than 21.45% of the statewide THP-NMD rate.

When NMD are placed outside of the placing county, the host county rate is paid.  (ACL 20-121, October 30, 2020.)

Child care portal

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The California Department of Social Services (CDSS) provides information regarding the Stage One child care immediate and continuous eligibility monthly data report and online summary screen.  This child care portal contains current individual family data needed to enroll a family in CalWORKs Child Care services or transfer between stages.

Counties are required to share information necessary for the administration of CalWORKs and child care programs with local contractors providing CalWORKs child care services.  Counties must provide limited access to the welfare department computer systems to child care contractors, including a single summary page containing individual family data needed to enroll a family in CalWORKs child care or transfer a family between stages.  Counties must also provide Stage Two contractors a report monthly of all families for whom CalWORKs has been discontinued, the parent/caretaker relative has not received aid for at least one month, and the parent/caretaker relative has children in the home who are eligible for child care services.

Counties must give child care portal access to Alternative Payment Providers and/or other contractors providing CalWORKs child care services.  (ACIN I-20-21, January 29, 2021.)

Child support orders against incarcerated parents

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The California legislature has reenacted Family Code section 4007.5.  Effective January 1, 2021, child support obligations will be suspended by operation of law when the child support order is established after January 1, 2021, the parent paying support has been incarcerated or involuntarily institutionalized for more than 90 consecutive days prior to the suspension.  This means that payment due on the current child support order, arrears or interest during a qualifying period of incarceration is set to $0 during the period the parent paying support is incarcerated or involuntarily institutionalized.  The prior child support obligation resumes on the first day of the first full month after release.

Exceptions to suspension of the child support order are when the parent paying support has the means to pay support while incarcerated or involuntarily institutionalized, is incarcerated or involuntarily institutionalized for domestic violence against the supported party and/or the supported children, various offenses that are subject to restraining order including stalking and harassment, or incarceration is for failure to comply with the child support order.

When the parent paying support has been incarcerated or involuntarily institutionalized, the Local Child Support Agency (LCSA) must administratively adjust the child support order and/or modify the court order.  For administrative adjustment, the LCSA must verify: the order was issued on or after January 1, 2021, the period of confinement has lasted more than 90 consecutive days, there is no evidence to support an exclusion from administrative adjustment, the LCSA has sent notice of the intended adjustment to both the person paying support and the person ordered to receive support, and neither party has objected to administrative adjustment within 30 days of receipt of the notice.  If either party objects to administrative adjustment, the LCSA must file a motion with the court.

Existing review and adjustment regulations are unchanged.  If there is no evidence of support potential when the parent paying support is incarcerated or involuntarily institutionalized, the LCSA can ask the court to establish a zero-dollar order or move that an existing order be modified to zero.  If there is evidence the parent paying support has some ability to pay, an order can be established or an existing order can be modified to the appropriate amount.

Family Code section 4007.5 now sunsets on January 1, 2023 unless that date is extended by legislation.  Any administrative adjustment action must be completed before January 1, 2023.  The prior order must be reinstated on January 1, 2023.  (CSSP Letter 21-01, February 10, 2021.)