The CAO uses budgeting to determine a budget group’s eligibility for a monthly assistance payment. The CAO must consider the following when completing the budget process:
Countable earned income.
Countable unearned income.
Allowable deductions.
The following two-step process is used to determine eligibility for a cash payment:
The first step is the "determination of need," which includes a net income test. The net income test compares the budget group's countable earned and unearned income, after all allowable deductions and disregards, with an established net limit plus special items.
The second step, if the net test is passed, is to determine the amount of the monthly assistance payment.
Prospective budgeting (PB) is the only method used to make these determinations.
Instructions for completing the determination of need and computing the amount of the payment are in Chapter 168.
Reviewed June 14, 2016. Reissued September 12, 2012, replacing January 31, 2012.