County of San Diego Health and Human Services Agency HHSA CalFresh Program Guide Prospective Budgeting and Reasonably Anticipated Income Number Page 63282 1 of 6 Revision Date 612018 Background Use anticipated incomeprospective budgeting methodology for determining eligibility and benefits for the certification period This section has been revised to delete references to Change Reporting Household and updates the Program Guide section into the new format Purpose This section describes the use of prospective budgeting and reasonably anticipated income in determining CalFresh allotments Policy 632821 Determination of Income Eligibility and Benefits CalFresh benefits for the certification period will be determined using prospective budgeting and reasonably anticipated income Determine initial eligibility based on the information reported at application Income already received the month of application and income that is reasonably expected to be received for the certification period Determine continuing financial eligibility when o Reviewing a SAR 7 Refer to 63274 and 63275 o Recertifying the household by reviewing the recertification form verifications submitted and information given during the interview Refer to 63304 and 632814 o The household makes a mandatory midperiod report of income over their Income Reporting Threshold IRT Refer to 63283 o When the household makes a voluntary report that is considered verified upon receipt VUR Refer to 63284 632822 Prospective Budgeting Determine the income that the applicant or recipient anticipates with reasonable certainty will be received in the certification period as prospective budgeting Calculate prospective budgeting when customer reports o Income from the application month andor the month prior to the application month or the SAR 7 Data Month o Reasonably anticipated changes in income and expenses o Changes in income midperiod will be evaluated using the current report months income and any anticipated changes Documentation Document how income is anticipated when determining benefit calculations Document any changes in income including but not limited to o New income o Income that is ending o Income that is expected to change o Income that fluctuates including anomalies such as overtime or missed work o Income that is so unstable that the recipient cannot make a reasonable estimate of what to expect in future months County of San Diego Health and Human Services Agency HHSA CalFresh Program Guide Prospective Budgeting and Reasonably Anticipated Income Number Page 63282 2 of 6 Use the income and anticipated changes reported on the SAR 7 or recertification forms to determine benefits for the certifications period or remaining months of the certification period unless there is conflicting information Note The fact that a household has received income in the past and now reports that the income has stopped does not mean there is a conflict For Quality Control QC purposes reviewers will rely heavily on case documentation when reviewing a case to determine if the correct allotment has been issued 632823 Reasonably Anticipated Income When the household and the worker determine it is reasonably certain that the household will receive a specified monthly amount in the certification period or remaining months of the certification period Do not count any portion of earned or unearned income of which the HH is uncertain If the amount of income that will be received or when it will be received is uncertain the portion of the income that is uncertain will not be counted The household is not required to report an exact amount of anticipated monthly income for each month of the certification period Instead the household will be required to provide information for the Data Month and any anticipated changes for the next certification period or remaining months of the certification period following the Submit Month Use the income received in the Data Month to reasonably anticipate the budget calculation unless the household reports that they anticipate a change in the upcoming certification period or remaining months of the certification period If the household reports income from a new source like a new job or unemployment benefits the income can be anticipated for the upcoming certification period or remaining of the certification period only when The household verifies that the income has been or will be approved or authorized within the upcoming certification period or remaining months of the certification period or the household is reasonably certain that the income will be received within the period The amount of the income is known and verified or the household is otherwise reasonably certain of the amount of the income and The start date of the income is known and verified or the household is otherwise reasonably certain of the start date of the income Refer to 631103 for examples 632824 Anticipating Unemployment Insurance Benefits UIB Do not anticipate UIB if the payment amount AND the date of receipt are not known If you cannot reasonably anticipate UIB at initial application and later find out that a household member has actually received UIB during the certification period do not retroactively budget the UIB and do not establish an overissuance claim until the next report SAR 7 or recertification Information that is subsequently obtained after the initial budget has been reasonably determined is not relevant as long as the income could not be reasonably anticipated County of San Diego Health and Human Services Agency HHSA CalFresh Program Guide Prospective Budgeting and Reasonably Anticipated Income Number Page 63282 3 of 6 Note A household is required to report midperiod when the households total gross income including UIB exceeds their IRT UIB may not be reasonably anticipated based only on current claim information from the EDD RealTime Match even if there are no issues to be resolved 632825 Changes after the Initial Month of Eligibility When a household reports accurately and timely to the best of its ability and the income was reasonably anticipated based on household circumstances at the intake do not establish an over issuance claim when the households circumstances change after benefits have been authorized Note Inaccurate budgets caused by worker error or a households failure to report may constitute an overissuance claim Refer to 631103 for examples 632826 Use of Weekly and Biweekly Conversion Factors Convert the income received on a weekly or biweekly basis to a monthly amount in the following manner Income received weekly will be converted to a monthly amount by adding the four or five weekly paychecks together dividing by four or five and multiplying the weekly averaged income by 433 Income received biweekly will be converted to a monthly amount by adding the two or three biweekly paychecks together dividing by two or three and multiplying the biweekly averaged income by 2167 Each paycheck does not need to be the same amount However the household must anticipate that their monthly income will continue and not expect any changes in order to convert the income into a monthly average Refer to 631103 for examples 632827 Allotment Determination Based on Stable Income If a customer has stable monthly income and does not expect any changes in the upcoming certification or remaining months of the certification period use the income reported on the application SAR 7 or recertification to determine the benefit amount for the certification or remaining months of the certification period If the stable income is received weekly or biweekly convert the income into a monthly average as described above 632828 Allotment Determination Based on Fluctuating Income When the household anticipates fluctuations from their Data Month income the determination of whether income could be reasonably anticipated will require additional steps and thorough case documentation In situations where the recipient expects a change or has fluctuating income and either cannot or does not provide an estimate of what could be reasonably anticipated the following guidelines can be helpful in determining with household assistance what income if any can be reasonably anticipated for the certification period or remaining months of the certification period Take into account any changes in income from the Data Month that the household reasonably anticipates for the certification period County of San Diego Health and Human Services Agency HHSA CalFresh Program Guide Prospective Budgeting and Reasonably Anticipated Income Number Page 63282 4 of 6 o If the household reports that they expect changes from the income received in the Data Month but does not know how much their income will change or when the changes will take place use the Data Month income until the recipient reports a reasonably anticipated change o If the household reports that their income fluctuates significantly month to month they cannot reasonably anticipate any income and that in some months they dont receive any income barring any information to the contrary accept this statement and no income should be budgeted o If the household is unable to estimate future income contact the employer or other source of income with written authorization from the household member If unable to anticipate income based on the Data Month take into account past income received by the household to determine whether or not the Data Month income is representative of the households typical pay However past income will not be used as an indicator to anticipate income if changes to the income have occurred or are anticipated o If income fluctuates to the extent that a 30day period alone cannot provide an accurate projection of future income look back to the prior semiannual period for historical income information o If the households income fluctuates seasonally it may be appropriate to use the most recent season comparable to the certification period rather than the last semiannual period Do not use past income as an indicator to anticipate income for the certification period if changes in income have occurred or can be anticipated No income will be anticipated when you and the household cannot determine an amount that can be reasonably anticipated after following the guidelines listed above If the reported information is unclear or questionable and the recipient refuses to assist in providing required information or fails to provide information necessary to determine continuing eligibility deny or discontinue benefits with timely notice If the customer is attempting to cooperate to the best of his or her ability yet is unable to provide information that would assist in determining future income with reasonable certainty do not consider the household failing to cooperate and do not deny or discontinue benefits for that reason Refer to 631103 for examples 632829 ContractSelfEmployment Income Households who by contract or selfemployment derive their annual income in a period of time shorter than one year will have that income averaged over the certification period provided the income from the contract is not received on an hourly or piecework basis These households may include school employees sharecroppers farmers and selfemployed households However these provisions do not apply to migrant or seasonal farm workers Contract income that is not annual income and is not paid on an hourly or piecework basis will be prorated over the period the income is intended to cover Refer to 631103 for examples 6328210 Income Starting and Ending MidPeriod Income that is starting or ending midperiod is not averaged over every month of the certification period or remaining months of the certification period County of San Diego Health and Human Services Agency HHSA CalFresh Program Guide Prospective Budgeting and Reasonably Anticipated Income Number Page 63282 5 of 6 Count the income in the months that it is reasonably anticipated to be received when the household anticipates the income will begin or end in one of the months of the upcoming certification period or remaining months of the certification period This regulation also applies at application Income received and ending in the month of application will only be used to determine eligibility and benefit amount in the month in which it was received Income that is beginning or ending will be treated differently depending on how certain the household is that the income will begin or end Refer to 631103 for examples Count Public Assistant PA CalWORKs benefits received for each month of the certification period when computing the CalFresh allotment Refer to 631103 for examples 6328211 Reasonably Anticipated Expenses Medical and Dependent Care expenses o Determine what the household reasonably anticipates paying over the certification period for medical and child care expenses Anticipation of the expense will be based on the most recent months bills unless the household is reasonably certain a change will occur o Average the medical expenses over the certification period over the remaining months of the certification period over the billing period or allow as a onetime deduction o Determine the expense for the current and remaining months of the certification period when the expense is reported and verified midperiod o Document carefully how you determined what expenses could be reasonably anticipated for the household Refer to 631103 for examples Legally Obligated Child Support Payments Consider the legally obligated child support payment which is ordered to be paid on a monthly basis to an individual outside the household as an income exclusion and anticipate it for the certification period when the CalFresh household member is actually paying it and anticipates paying for the certification period Shelter Costs Determine shelter costs at application and recertification Deductions will remain fixed at the determined amount unless the household reports a change Refer to 63284 for instructions regarding worker action on voluntary reports of changes in shelter expenses Expenses Paid Weekly or BiWeekly Convert medical dependent care and shelter rent expenses paid on a weekly or biweekly basis to a monthly deductible expense by multiplying the weekly or biweekly expense by 433 or 2167 as appropriate Document in Case Comments the rationale of the determination of the anticipated expense deduction Medical Expenses Reported OneTime Only Households reporting a onetime only medical expense during the certification period may elect to have a onetime deduction or to have the expense averaged over the remaining months of their certification period Refer to 631103 for examples References ACL 1225 ACL 1542 County of San Diego Health and Human Services Agency HHSA CalFresh Program Guide Prospective Budgeting and Reasonably Anticipated Income Number Page 63282 6 of 6 Sunset Date This policy will be reviewed for continuance by 5312021 Approval for Release RICK WANNE Director Eligibility Operations