CA Benefit Determination
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This section identifies how CA eligibility and benefit amounts are determined.
Policy
Under Title IV-A of the Social Security Act, federal funds are available in block grants to states for the purpose of providing temporary CA to needy families with eligible dependent children.
The CA payment standard test is used to approve, deny, or close CA and Two Parent Employment Program (TPEP) benefits.
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CA Payment Determination
Participants must apply, complete an interview, and be determined prospectively eligible in order to receive CA benefits. Prospective eligibility consists of meeting required eligibility factors along with the following income tests:
When all eligibility factors and income tests are met, participants are considered to be prospectively eligible.
FAA compares the CA budgetary unit size and income to the CA income maximum limit for purposes of determining prospective eligibility. Participants must meet prospective eligibility requirements before a budgetary unit can receive benefits.
Prospective eligibility includes meeting the needy family criteria and having less income than the payment standard for the size of the budgetary unit living in the home.
NOTE The CA Needy Family Test is not conducted on Kinship Foster Care (KFC) child only cases or Tribal TANF cases.
The CA Payment Standard Test is conducted for all CA determinations.
The countable income minus CA earned income deductions cannot exceed the maximum benefit amount an eligible budgetary unit with no income would receive. This amount is 36% of the 1992 Federal Poverty Level (FPL), based on the A1 or A2 CA Payment Standard. (See CA Payment Standard (A1/A2))
The payment standard is based on the number of budgetary unit participants for whom the CA benefit is intended. The CA payment standard is used when computing prospective eligibility based on the payment limit. The benefit payment amount is computed automatically by completing all of the following:
●The appropriate CA earned income deductions are subtracted from the gross countable income to determine the net income.
●Net income is subtracted from the CA payment standard.
●The remaining figure is the net unrounded payment.
When the net unrounded payment is at least one cent, the budgetary unit is prospectively eligible.
When the net unrounded payment is zero, the budgetary unit is not prospectively eligible.
Participants are required to complete the CA renewal process for continuing eligibility. (See CA Renewal Requirements and Time Frames)
In addition to meeting income and other eligibility factors, participants are obligated to specific reporting requirements.
CA Needy Family Test
To be eligible for CA, the CA budgetary unit must be prospectively eligible. The CA Needy Family Test is used in the prospective eligibility determination process.
The CA Needy Family Test is used to determine whether the dependent child resides in a needy family. The test is based on the earned and unearned income of the family(g) of the caretaker relative(g). All members of the caretaker relative’s family must be registered to the case so that AZTECS can perform the CA Needy Family Test.
FAA determines eligibility for state CA when a budgetary unit does not meet the following Tribal TANF program eligibility requirements:
●Tribal enrollment of specific participants
●Resides in a Tribal Service Delivery Area (SDA)
NOTE The CA Needy Family Test is not conducted on some Tribal TANF budgetary units. (See Tribal TANF for Tribal TANF policy.
The family size of the caretaker relative is used for the CA Needy Family Test. However, the budgetary unit size is used to determine the CA payment amount. See any of the following examples to assist in understanding the difference between family sizes and budgetary unit sizes:
When the adult caretaker is a nonparent caretaker relative (NPCR) of the dependent child and they are applying for the child only, then the family’s combined income cannot exceed 130% of the current Federal Poverty Level (FPL).
When the caretaker relative is a parent of the dependent child or the NPCR is applying for themselves and the child, then the family’s combined income cannot exceed 100% of the current FPL.
The CA Needy Family Test is not conducted on Kinship Foster Care (KFC) child only cases.
When it is determined that the dependent child resides in a needy family, FAA determines a payment amount based on the CA payment standard test. (See CA Payment Standard Test)
CA Earned Income Deductions
Policy and procedures regarding CA earned income deductions include all of the following:
Cost of Employment Deduction (COE)
The Cost of Employment (COE) deduction is calculated for each wage earner in the needy family(g).
The COE is a $90 monthly deduction from the total countable gross earned income of each participant who is employed.
The COE is meant to compensate for job-related personal expenses. Job-related expenses include, and are not limited to, all of the following:
●Transportation
●Uniforms
●Mandatory payroll deductions
30% Earned Income Deduction
The earned income deduction is equal to 30% of each CA employed participant’s countable earned income.
Dependent Care Expense Deduction
Each employed participant is eligible for a dependent care expense deduction from earned income. (For more information, see Dependent Care Expenses)
EMPOWER Deduction
EMPOWER was a pilot project designed to encourage participants to transition off CA. It was in effect for the benefit months of November 1995 through September 2002.
During this pilot project FAA implemented the Family Benefit Cap Period (FBCP) policy, which is still in effect. Benefit Cap (BC) children are not eligible for CA unless FBCP exempt. However, the CA budgetary unit is eligible to receive an EMPOWER deduction from earned income.
The EMPOWER earned income deduction is an amount equal to the amount of CA benefits the BC child would be eligible for when included in the CA benefit.
This amount is deducted from the participant with the greatest countable earned income after all other deductions are calculated. Any remaining amount of the deduction is applied against the earned income of any additional participants.
NOTE This deduction does not apply to the CA Needy Family Test and many Tribal TANF cases.
CA Payments Under 10 Dollars
When a budgetary unit is prospectively eligible with a payment amount under $10, the case is designated as eligible no pay. The CA budgetary unit is eligible to receive Jobs Program Supportive Services and Division of Child Care (DCC) services, even though payments under $10 are not issued by AZTECS. CA renewal interviews are still required for eligible no pay CA cases.
When changes occur, supplemental payments cannot be issued unless regular benefits and supplemental benefits total $10 or more.
CA Voluntary Withdrawal
Participants have the right to withdraw from CA at any time. FAA accepts the Voluntary Withdrawal (VW) in one of the following ways:
●CA Written Withdrawals
●CA Verbal Withdrawals
The primary informant(g) (PI) may request verbally or in writing the removal of only certain participants from the budgetary unit. When the participant is remaining in the household, FAA determines whether the participant is a mandatory participant in the budgetary unit. When the participant is a mandatory participant, they cannot be removed from the budgetary unit.
CA Initial Month Special Rules
CA payments can only be issued during a month when the budgetary unit is prospectively eligible. CA initial month special rules include all of the following:
●When the CA budgetary unit is eligible in the month the determination is completed and eligible in the following month, the CA can be approved.
●When the CA budgetary unit is eligible in the month the determination is completed but not eligible in the following month, the CA is approved until the month the budgetary unit is no longer eligible.
●When the CA budgetary unit is not eligible in the month the determination is completed, but is eligible in the following month, the CA is prorated to the month of eligibility.
●When the CA budgetary unit is eligible on the date of application but becomes ineligible on or before the date the determination is made, the application is denied.
●When a non-mandatory participant in the budgetary unit becomes ineligible before the determination is completed and continues to be ineligible for the following month, the participant is removed from the budgetary unit.
●When a non-mandatory participant is eligible in the month the determination is completed but becomes ineligible for the following month, the participant is approved for the determination month, then removed from the budgetary unit.
CA Approval Periods
FAA assigns the approval period(g) based on the budgetary unit’s circumstances.
CA approval periods of new applications is based on the month of determination or the first eligible month, whichever is later as follows:
●CA application month 06/2022, CA eligibility determination completed on 07/2022 – CA approval period 07/2022-12/2022.
●CA application month 06/2022, CA eligibility determination completed on 06/2022 – CA approval period 06/2022-11/2022.
FAA automatically assigns a 12-month approval period for all of the following CA child only budgetary units:
●Kinship Foster Care (KFC) child only
●Kinship Care (KC) cases in which the nonparent caretaker relative (NPCR(g)) is not included in the budgetary unit
●Parent is not included in the budgetary unit receiving benefits due to receipt of Supplemental Security Income (SSI) benefits
FAA assigns a six-month approval period to all other CA cases.
A renewal interview must be completed by the last calendar day of the renewal month to be considered timely. (See CA Renewal Requirements and Time Frames)
CA Childcare While Employed
The Division of Child Care (DCC) provides childcare assistance for CA participants to participate with the Jobs Program, to accept or maintain employment.
Jobs staff refers the participant to the local DCC office through an interface between the Jobs Automated System (JAS) and the DCC automated system. Jobs also gives the participant the phone number for the local DCC office and advises the participant to call and arrange for childcare.
DCC may pay part or all of the cost of childcare depending on the age of the child and the type of provider the participant chooses. The participant is responsible for charges that are more than the DCC payment. When choosing a provider, the participant needs to ask the provider about any costs in addition to what DCC pays. Jobs may be able to help the participant pay certain additional costs.
CA Ineligibility Date
The date of ineligibility when more than one change occurs is the first calendar day of the month after the month the change occurred that caused ineligibility.
The first month after the change occurs in which the budgetary unit does not meet CA eligibility requirements is the first month the budgetary unit is prospectively ineligible. (See CA Initial Month Special Rules for ineligible dates for a new application.)
Verification
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
Examples
1) April (age 23) applied for herself and her three children, Abigail, Albert, and Bert. She lives with her parents, Lloyd and Loretta, and her niece Maria. The CA Needy Family Test is based on the following family:
|
Individual
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Relationship
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Family Member
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|
April (23)
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PI
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Y
|
|
Abigail (5)
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CH
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Y
|
|
Albert (3)
|
CH
|
Y
|
|
Bert (newborn)
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CH
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Y
|
|
Lloyd (53)
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PA
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N
|
|
Loretta (51)
|
PA
|
N
|
|
Maria (17)
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NN
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N
|
The CA budgetary unit size is 4
The family size is 4
NOTE For purposes of the CA Needy Family Test, a family is based on the caretaker relative who exercises responsibility for the dependent child.
April does not exercise responsibility for Lloyd, Loretta, and Maria and therefore they are not included in the CA needy family determination.
2) Brenda (age 33) applied for CA for her nephew, Billy, only. Brenda's spouse, Bob, is in the home, along with her daughter, Sally, and her stepdaughter, Brianna. The CA Needy Family Test is based on the following family:
|
Individual
|
Relationship
|
Family Member
|
|
Brenda (33)
|
PI
|
Y
|
|
Billy (12)
|
NN
|
Y
|
|
Bob (38)
|
SP
|
Y
|
|
Sally (11)
|
CH
|
Y
|
|
Brianna (9)
|
SC
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Y
|
The CA budgetary unit size is 1
The family size is 5
NOTE For purposes of the CA needy family test, a family is based on the Caretaker relative who exercises responsibility for the dependent child.
Brenda exercises responsibility for her nephew and therefore her spouse and minor children are included in the CA needy family determination.
3) Carol (age 33) applied for CA for herself and her daughter, Cindy. Carol's spouse, Carlos, is in the home, along with Carlos's daughter Camilla, and Florence, Carol's mother. The CA Needy Family Test is based on the following family:
|
Individual
|
Relationship
|
Family Member
|
|
Carol (33)
|
PI
|
Y
|
|
Carlos (38)
|
SP
|
Y
|
|
Cindy (14)
|
CH
|
Y
|
|
Camilla (11)
|
SC
|
Y
|
|
Florence (62)
|
PA
|
N
|
The CA budgetary unit size is 2
The family size is 4
NOTE For purposes of the CA Needy Family Test, a family is based on the caretaker relative who exercises responsibility for the dependent child.
Carol and her spouse exercise responsibility for her daughter and her stepdaughter therefore they are all included in the CA needy family determination. Carol does not exercise responsibility for Florence. Therefore, she is not included in the needy family determination.
4) Donna (age 73) applied for CA for her two granddaughters, Danielle, and Diane, only. Danielle and Diane are the daughters of Michelle, Donna's daughter, who is not in the home. Also in the home is Mary, Donna's daughter, and Mary's two sons, Sam, and Tom. The CA Needy Family Test is based on the following family:
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Individual
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Relationship
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Family Member
|
|
Donna (73)
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PI
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Y
|
|
Danielle (10)
|
GC
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Y
|
|
Diane (14)
|
GC
|
Y
|
|
Mary (29)
|
CH
|
N
|
|
Sam (8)
|
GC
|
N
|
|
Tom (6)
|
GC
|
N
|
The CA budgetary unit size is 2
The family size is 3
NOTE For purposes of the CA Needy Family Test, a family is based on the caretaker relative who exercises responsibility for the dependent child.
Donna exercises responsibility for two granddaughters only. Therefore, they are included in the CA needy family determination. Donna does not exercise responsibility for Mary or her two children therefore they are not included in the needy family determination.
Legal Authorities
7 CFR 273.9(c)(1)(i)(B)
7 CFR 273.9(d)(4)
AAC R6-12-210
AAC R6-12-310
AAC R6-12-311
AAC R6-12-313
AAC R6-12-318
AAC R6-12-320
AAC R6-12-321
AAC R6-12-508
AAC R6-12-703
AAC R6-12-902
ARS 46-211
ARS 46-292
TANF State Plan
42 U.S.C. 681
last revised 04/17/2023