Who Can Receive Benefits
From CalWORKs | Welfare Resources
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CalWORKs is paid to an "Assistance Unit" (AU) of the appropriate size. The AU must include the aided child, and those of her or his parents and brothers and sisters living with the child. WIC § 11450(a). The purpose of including these relatives is to ensure that the income and resources of the immediate family are used to support the aided child. Family members receiving SSI are exempted from this rule, since federal law requires that their benefits be used solely for their support.
At the relative's option, the AU may include other non-parent caretaker relatives such as grandparents, or stepparents (the spouse of the caretaking parent). WIC § 11203. However, even if these relatives opt not to be members of the AU, their income will be counted if they have a legal duty to support a member of the AU. For example, Family Code §§ 3930, 4300 and 4301 require the grandparents to support their live-in minor mother daughter, and requires a stepparent of an aided child to support his or her spouse who is the parent of the live-in aided child. Accordingly, their income is considered available to determine both initial eligibility for CalWORKs, as well as the amount of the grant received by the Assistance Unit. WIC § 11008.14; ACL 97-59 (see errata).
Whose Income Counts and How is it Counted?
The income of anyone who is legally obligated to support the parent or child(ren) on the application, and that of everyone living in the CalWORKs unit (or who would be in the unit but for their being sanctioned), is counted as income of the assistance unit. WIC § 11008.14; ACL 97-59 (see errata) and 98-17. (Note 19) This includes:
- The child needing assistance, and their brothers and sisters under age 19, (Note 20)
- Parents or adoptive parents (of the aided children),
- Step parents (of the aided children), e.g., spouse of the caretaker,
- Siblings (of the aided children),
- Sponsors for immigrants who have just come to the country (sponsors have an obligation to support the immigrant for at least the first three years that they are in this country).
Except for the sponsors of immigrants, the income of these family members living together will be counted under the formulas outlined above. This is true whether or not all family members are members of the AU.
For example, assume a family of four in Region 1 which is made up of husband, wife, the child of the husband, and the child of the wife (unrelated to stepfather's child). The wife earns $900 gross per month and the husband is an unemployed recipient. Will the family be eligible for CalWORKs? If so, how much of the wife=s income will be considered available to support her applicant husband if the wife and her child elect to remain outside of the AU? Finally, will it be more advantageous if all family members are in the AU?
- The Family's Eligibility
- Wife's gross earned income = $900
- less $90 disregard = $810
- Since this $810 is less than the needs standard for a family of four ($1113 in Region 1), the family will be eligible for CalWORKs. The amount of the family=s grant will be calculated as follows:
- The Family's Grant
- Husband's income = $0
- Wife's income = $900
- Total gross income = $900
- less income disregards:
- $0 (disability based unearned income) = $900
- $225 (earnings) = $675
- less 50% of remaining earnings = $337.50
- This $337.50 can be treated as either:
- the amount contributed by the spouse for the support of her husband if she opts out of the AU, OR
- the amount of countable (net non-exempt) income available to the family if she opts into the AU
- $862 (benefit rate for a family of four) less $337.50 (countable income) = $524.50 (amount of the family's grant)
- Total family income ($900 earnings + $524.50 CalWORKs benefits) = $1424.50
"Deeming" Assets and Income of a Sponsor to a Sponsored Immigrant
A sponsored non-U.S. citizen immigrant applying for CalWORKs is "deemed" to be receiving from his or her sponsor sufficient income and resources for the ongoing support of non-citizen's family. WIC §§ 11008.13; MPP 43-119.22. The non-citizen is required to gain the sponsor's cooperation in determining the degree of support. MPP 43-119.23. In general, deeming works like this:
:: Deemed Resources
In general, the value of the countable assets of the sponsor -- as determined under the rules applied to all CalWORKs recipients -- is divided by the number of immigrants the sponsor has sponsored. The result is the value of the resources which is presumed available to support a non-citizen applying for benefits. If that result is above the CalWORKs resource limit, the non-citizen will be ineligible. MPP 42-205.5.
:: Deemed Income
Similarly, the total monthly earned and unearned income of the sponsor is divided by the number of non-citizen he or she has sponsored. The result is the amount of income which will be deemed to be available to support each non-citizen. This deemed income will be counted as "unearned income" and deducted dollar for dollar from the grant amount which the non-citizen applicant's family would otherwise receive. MPP 44-133.7. In many cases, sponsor deeming will render the applicant ineligible to receive benefits.
Limited exemptions to sponsor deeming are available for certain applicants escaping domestic violence, as well as families abandoned by their sponsors. MPP 43-119.221 and 222. These exemptions are explained in Otherwise Eligible "Qualified" Immigrants.
Counting the Income of an Unaided Family Member to the Recipients
The income of a family member who (a) lives with the CalWORKs recipient or applicant, and (b) is legally obligated to support a member of the Assistance Unit is counted to some extent as the income of the aided family, even if s/he is not in the AU. This policy applies to live-in stepparents and parents of minor mothers (grand-parents of the aided child).
Suppose the working mother did not want to receive CalWORKs for herself or her child. (She doesn't have to since she is only the step-parent of her husband's "dependent child" applying for aid.) In that case, when the husband applies for CalWORKs, some portion of the wife's income will be available for the support of her husband. This is calculated by comparing the benefit rate for a family of two -- husband and his child -- to the benefit rate for a family of four. ACL 97-59 (see errata) and 98-17.
Using the above example, we have a family of four which is made up of husband, wife, the child of the husband, and the child of the wife (unrelated to stepfather's child). The wife earns $900 gross per month and the husband is an unemployed recipient. The amount of countable earnings remains the same, $337.50. The county will then compare the benefit rate for a family of four less the countable income ($862 - $337.50 = $524.50) to the benefit rate for a family of two without any countable income ($584). The lowest amount (between $584 and $524.50) will be the amount of CalWORKs benefits the husband is eligible to receive. Hence, the unaided working mother is presumed to have contributed $59.50 ($584 less $424.50) for the support of her spouse.
Considerations for Opting Into or Out of the Assistance Unit
The calculations for determining the grant amount of the family would be the same whether or not the stepparent/wife and her child are in or out of the AU. Hence, the decision to join the AU depends on such things as whether or not the wife or her child have health insurance (if not, Medi-Cal is available; if so, the premiums may still be so high as to make Medi-Cal attractive), or whether the wife wishes to subject herself to the scrutiny of the welfare department. The same considerations would apply in the case of a grandparent whose live-in minor daughter has a dependent child eligible to receive benefits.
The Live-In Boyfriend Contribution Requirement
A related problem is the situation where a non-parent adult, such as a boyfriend of the parent, lives with the family. Although this contribution is not counted as income to the AU, the adult is required to support him/herself to the tune of at least $369 (in Region 1) or $360 (Region 2) per month, and to cooperate with the welfare department in showing that the contribution is made. WIC § 11351.5; MPP 43-109.1, et seq. (As required by MPP 43-109.23, these amounts are based on the in-kind income tables found at MPP 44-115.311, and are the sums of the presumed value of free food, housing and utilities provided to an Assistance Unit of one person.)
Notes
19. See the discussion on the "Family Cap" (known in California as the "Maximum Family Grant" policy or "MFG") for the treatment of income earmarked for the support of new-born children who do not receive aid because the grant will not be increased. Generally, all income is counted except child support paid for a new child subject to the MFG rule.
20. Although siblings of the aided children under age 19 are required to be members of the Assistance Unit, their earnings will not be counted if they are full time students (MPP 44-111.221(a), or half-time students working less than 173 hours per month (MPP 44-111.222(b)).
21. This modifies the old rule (based on the understanding that a grand-parent had no legal duty to support her or his grand-child) that no income from a senior parent could be deemed to a minor parent's child. If members of all three generations live together and receive CalWORKs, each member's income will be considered available to support all other members of the Assistance Unit. ACL 02-94 (see errata).
