How Much a Recipient Will Receive
From CalWORKs | Welfare Resources
- Download Monthly Needs Standard, Maximum Benefit Rates, and Earned Income Eligibility Limits (as of October 2005)
The amount of the CalWORKs grant an applicant will receive depends on whether the family's net non-exempt income exceeds the maximum CalWORKs grant payable to a family of equivalent size. The aid paid will be the difference between the maximum grant amount payable, and the family's countable income regardless of whether a particular family member will be included in the "Assistance Unit" (AU) for which the grant is paid. WIC §§ 11450.12(b), 11451.5; ACL 97-59.
"Family Cap" on the Grant Amount (also known as "Maximum Family Grant")
A family which has continuously received benefits for more than ten months will not receive an increase in its grant when a new child is born after September 1, 1997; unless the child was conceived as a result of rape (as defined by Penal Code §§ 261, 262) or incest reported prior to, or within three months of, the birth of the child; or because of contraceptive failure despite sterilization of either parent or use of an intrauterine device or a Norplant. WIC § 11450.04; MPP 44-314.2; ACL 97-42. If the family was not on aid for two months during the ten months prior to the birth, the family cap does not apply since benefits were not "continuously received" for the requisite period. WIC § 11450.04(a); MPP 44-314.2. Moreover, if the family goes off aid for 24 months and then reapplies, the family cap, or "Maximum Family Grant" (MFG) policy, no longer applies so long as the child has lived with the family during this period. WIC § 11450.04(d)(1).
On the other hand, any child support received by the recipient or the county for the support of a child unaided because of the family cap cannot be kept by the county, but must be given to the parent for the support of the child. Moreover, because it is earmarked for the unaided child, it cannot be counted as income to the Assistance Unit. WIC § 11450.04(e). Additionally, derivative benefits from Social Security or other government programs based on the absent parent's disability or retirement and paid to or on behalf of the MFG child, will be counted as child support and will not be counted as income to the AU. MPP 44-314.62; ACL 01-16.
Importantly, the MFG rule applies only if the county has previously notified the assistance unit, in writing, of the rule at least 10 months before the birth of the MFG child. MPP 44-314.31; ACL 00-78. Lack of prior notice has been key to invalidating attempts to apply the MFG rule.
New State Residents are Given the Same Amount of Benefits as Other Residents
Although WIC § 11450.03 authorizes extending to new state residents the amount of benefits which would have been given the family in the state in which they previously lived, the U.S. Supreme Court found that the rule unconstitutionally discriminated against non-residents. Saenz v. Roe, 526 U.S. 489 (1999).
Differing Grant Amounts Based on Region, Disability and Child-Only AUs
- Download Monthly Needs Standard, Maximum Benefit Rates, and Earned Income Eligibility Limits (as of October 2005)
Both the needs standard and the maximum grant paid to families changes depending on which part of the state the family lives in. Urban "Region 1" counties (including the greater Bay Area) have a higher standard, while predominantly rural "Region 2" counties share a lower standard. WIC § 11450.018. (Note 16)
Moreover, the maximum grant given families in either region will be slightly higher if all of the parents or caretaker relatives living with the aided child (a) are disabled and receiving Supplemental Security Income, In-Home Supportive Services, State Disability Insurance, or Workers' Compensation Temporary Disability; or (b) are non-parent caretakers who are not members of the Assistance Unit. WIC § 11450.019. The rationale for this distinction is supposedly that a reduced grant for a non-disabled adult recipient will encourage work.
The Monthly Needs Standard, Maximum Benefit Rates, and Earned Income Eligibility Limits table sets forth the respective needs standards, maximum benefits for families headed by disabled and non-disabled caretaker relatives, and maximum earned income levels to retain eligibility for CalWORKs. A family eligible for only a relatively low amount of cash benefits should seriously consider not applying for CalWORKs since each month that benefits are received will count towards the 60 month lifetime limit.
How is Monthly Income Counted for Grant Calculation Purposes?
Countable unearned income is deducted dollar for dollar, while only a portion of unearned disability-based income (Social Security Disability Insurance benefits (SSDI), Workers' Compensation temporary benefits, State Disability Insurance benefits (SDI), and private disability benefits) and earned income (wages and salaries) is counted. Each month, the county will deduct from the family's gross income:
- the first $225 of disability based unearned income
- earned income which, when added to any disability based unearned income, adds up to $225
- 50% of the remaining earned income
The remaining sum is the "net non-exempt income" which will be subtracted from the maximum aid payable to a family of comparable size. WIC § 11451.5; MPP 44-113.2. Examples of how the rules are applied to compute the grant are found at MPP 44-133.54.
Thus, if a two-parent recipient family with one child receives $400 in SDI benefits and $400 in earnings, the family's grant will be calculated as follows:
- $400 SDI less $225 = $175 in countable disability based unearned income
- $400 wages less 50% = $200 in countable earned income
- $175 + $200 = $375 countable (net non-exempt) income
- $723 Region 1 maximum grant (lower benefit rate because only one parent is disabled) minus $375 = $348 CalWORKs grant paid to the family
Unlike the former AFDC program, there is no deduction for child care expenses taken from the family's income. Instead, the county directly pays the child care provider for care needed by a recipient who is participating in welfare to work activities. Education Code § 8357; ACL 97-73.
Families with earned income below that listed above will receive only a portion of the CalWORKs grant, and may be ineligible if the family has other countable income. The county must explain to the client in writing the reasons for the denial and the client has a right to challenge the denial by requesting a hearing.
If a family member finds a job while on CalWORKs that pays more than the limit for the family's size, the family may still be entitled to up to twelve months of Medi-Cal and up to at least two years of child care. WIC § 14005.8; ACL 97-73.
Quarterly Reporting: Counting the Family’s Income
Beginning with pilot projects launched in November, 2003, the state introduced a "quarterly reporting" system to replace the former "prior month budgeting" reporting system. In May, 2004, quarterly reporting was implemented throughout the state. Under prior month budgeting, the county assumed that, for a family which had received CalWORKs for two months, the amount of non-CalWORKs income received in month one would be presumed to be the amount of such income which would be received in month three, calculating the family's grant for month three on that basis. Under prior month budgeting, a recipient family was required to report its income by the 10th of each month so that the county could calculate the grant amount to be received two months hence. (See former MPP 44-313, et. seq.)
:: Reporting Requirements During a Quarter
Although recipients are generally only required, once every three months, to report current and prospective income and resources, and to identify the family members composing the assistance unit, there are exceptions. The recipient is also required, within ten days, to report if any of the following happen: (1) the assistance unit receives income in an amount which is likely to make the family ineligible for CalWORKs; (2) a family member is convicted of a drug felony; and (3) a family member is a fleeing felon or probation or parole violator. WIC §§ 11265.3(a). An increase in income is likely to render the family ineligible if the family's total income exceeds its "Income Reporting Threshold" (IRT), defined as the greater of 130% of the Federal Poverty Level for a family of the same size or that amount which renders the family financially ineligible for CalWORKs. MPP 44-316.324(c); ACL 03-18 at 32. (Note 17)
:: Calculating the Monthly Grant for the Following Quarter
Under quarterly reporting, the amount of income received by the assistance unit in the second month of a three month quarter, as well as the amount the recipient anticipates receiving during the following month, is reported to the county on the "QR7" form by the 11th day of the third month. WIC §§ 11265.1. (Note 18) If the recipient does not report any anticipated changes in income during the following quarter, the county will calculate the monthly grant for the following quarter based on the income reported received in month two. MPP 44-313.111, 44-315.31. If the recipient reports an anticipated change the amount of income s/he will receive in the following quarter, the county will determine whether the anticipated change is reasonably certain, and will calculate the monthly grant for the following quarter on the assumption that the anticipated income will be received. WIC § 11265.2; MPP 44-313.111; ACL 03-18 at 21-23. Fluctuating income is averaged according to a formula set forth at ACL 03-18 at 27-31.
:: Changes in the Grant Amount During the Following Quarter
Unlike the former prior month budgeting scheme, the monthly grant during the following quarter will not be decreased unless (1) a caretaker relative is discontinued because of the 60 month time limit; (2) a child is discontinued because s/he reaches the maximum age limit for assistance; (3) a family member is sanctioned; (4) the assistance unit reports that its income has increased to the point that the family is financially ineligible for CalWORKs; or (5) the AU reports that member is a fleeing felon, parole violator, or drug felon. WIC §§ 11265.2(e), 11265.3(a)(1); MPP 44-316.31, 44-316.321, 44-316.324 (recipient ineligibility factors), 44-316.331 (county-initiated actions).
On the other hand, the monthly grant during the following quarter will increase if the recipient reports a decrease in the assistance unit's income or a new member of the assistance unit, and, within ten days of receiving verification of the report, the county is required to revise the current month's grant and the grant for the balance of the quarter based on the new information. WIC §§ 11265.3(d). This provision obviates the need for the "Reduced Income Supplemental Payment" (former WIC § 11450.2), which in any event, only supplemented the reduced income up to 80% of the Maximum Aid Payable. The new provision essentially provides for supplementation up to 100% of the Maximum Aid Payable.
Notes
16. Region 1 includes Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, and Ventura counties. All others are in Region 2. While a county can opt to use its own funds to increase benefits, none have done so. WIC § 18234.
17. 130% of FPL is the income maximum for the Food Stamp Program (7 CFR § 273.9(a)(1)(i)). Each year, the state publishes this amount for families of a particular size. The most recent figures are set forth in ACL 05-27 (November 1, 2005). The maximum earned income limits for CalWORKs recipient families of a given size are set forth in the table listing the Monthly Needs Standard, Maximum Benefit Rates, and Earned Income Eligibility Limits. The amount stated, plus $2, will make the client ineligible for CalWORKs.
18. The QR 7 is required to ask about "any other changes to facts required to be reported," (WIC § 11265.1(d)(2)), including family composition, and the recipient family's resources, which also is only required to be reported once during the quarter. ACL 03-18 at 16-17. Even if the family's resources exceed the limit sometime during the quarter, the county has no authority to discontinue or decrease benefits on that basis. Id. at 17, MPP 44-316.31. MPP 44-352.111 further provides that an excess property overpayment will not be assessed so long as the resource is spent down under the limit before the first day of the next quarter.
