Release 89: Effective April 1, 2018

Child Care Assistance -
F.  Financial Eligibility


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  1. Intent and overview
  2. This policy is intended to help the worker and customer predict the family's income with a reasonable degree of accuracy using prospective eligibility and budgeting. Important considerations include:

    Prospective or Retrospective Eligibility and Budgeting; ERDC, REF, REFM, SNAP, TANF Rule
    461-150-0060 — Prospective or Retrospective Eligibility and Budgeting; ERDC, REF, REFM, SNAP, TANF

  3. ERDC income limit
  4. The income limit is different at the initial certification versus during the certification and at recertification.

    Initial certification
    The income limit is 185 percent FPL when a family is applying for ERDC as a new applicant. A new applicant includes those who are reapplying after a break in benefits of more than one calendar month.

    During the certification and at recertification
    The income limit is higher during the certification (referred to as ongoing income limit) and at recertification (referred to as the exit limit). This allows families to maintain child care while experiencing moderate financial gains – helping to reduce the cliff effect – for those receiving ERDC and those reapplying without a break in benefits of more than 1 calendar month.

  5. Prospective eligibility and budgeting
  6. For ERDC, income is budgeted so the anticipated amount is the same for each month including the initial month - see OAR 461-150-0060.

    When initial month income is different (higher or lower), the initial month is still used to calculate an average for ERDC budgeting. Situations when the initial month can be different are: a client gets a new job, changes jobs or other situations that cause income to increase or decrease.

    Example:

    For a 12-month certification period , add the total anticipated income for 12months including the initial month, and divide by 12.The income calculation may not match SNAP income.

    Example: Ending and starting a new job in the date of request (DOR) month. Applicant turns in an application with pay stubs attached from a job that ended, but pay was received in the DOR month. Also attached is a pay stub from the new job received in the DOR month and a letter from the employer with the ongoing income, hours and work schedule.

    Last pay from previous job is $785, the income verification from the new job includes pay check for $574 and ongoing on the letter states $10.25 per hour at 30 hours per week.

    Calculations: month 1 = $785 + $574 = $1,359, ongoing months $10.25 x 30 x 4.3 = $1,322.25 Ongoing months $1,322.25 x 11 = $14,544.75 + $1,359 = $15,903.75 Final calculation: $15,903.75/12 = $1,325.31

    For information on what income is counted and when it is considered available, refer to the chart at the end of this chapter and to the Family Services Manual (FSM) section on Counting Client Assets. This section also has the information about how to treat self-employment income. The ERDC program has a $1 million asset limit. Clients who self-attest that they have $1 million or more in assets will be denied. A decision notice of ineligibility for the ERDC program will need to be sent to the family.

    Example:

    Brad has submitted an Employment Related Day Care (ERDC) Re-Application and Supplemental Nutrition Assistance Program (SNAP) Application (DHS 7476) to the local branch office. He is applying for child care assistance for his son, Maddox. On the application, Brad does not mark question #9, indicating the family assets exceed one million dollars. Since the family’s assets exceed the asset limit for the ERDC program, Brad will be denied child care assistance. A decision notice of ineligibility will need to be sent.

    Specific Requirements; ERDC Rule
    461-135-0400 — Specific Requirements; ERDC

    Prospective or Retrospective Eligibility and Budgeting; ERDC, REF, REFM, SNAP, TANF Rule
    461-150-0060 — Prospective or Retrospective Eligibility and Budgeting; ERDC, REF, REFM, SNAP, TANF

    Prospective Budgeting of Stable Income Rule
    461-150-0070 — Prospective Budgeting of Stable Income

    Prospective Budgeting: Annualizing and Prorating Contracted or Self-employment Income; Not OSIP, OSIPM, or QMB Rule
    461-150-0090 — Prospective Budgeting: Annualizing and Prorating Contracted or Self-employment Income; Not OSIP, OSIPM, or QMB

    Child Care Eligibility Standard, Payment Rates, and Copayments Rule
    461-155-0150 — Child Care Eligibility Standard, Payment Rates, and Copayments

    Use of Resources in Determining Financial Eligibility Rule
    461-160-0010 — Use of Resources in Determining Financial Eligibility

    Resource Limits Rule
    461-160-0015 — Resource Limits

    Use of Income to Determine Eligibility and Benefits for ERDC Rule
    461-160-0300 — Use of Income to Determine Eligibility and Benefits for ERDC

  7. Self-employment income for ERDC
  8. The following is a brief description of how to treat self-employment income in the ERDC program. To determine if a self-employed person is eligible for ERDC, first calculate the gross self-employment income. Verification of income can be tax records, business ledgers or other business records that clearly show the business income. If the self-employment income was reported on the prior year’s tax return and is a reliable indicator of current year income, the income is annualized and the prior year’s return is used to determine income and deductions.

    Determining cost –
    No cost – If the business states they have no cost associated with running the business, the full gross amount is used.

    50% cost – If the business states they have at least $1 in costs, they receive the 50 percent deduction. This does not need to be verified. Most businesses have at least $1 in costs.

    Total allowable cost – If the customer says they have more than 50 percent in costs, the full allowable cost can be used. The amount of the deduction is limited to costs that are verified and fit the definition of an allowable cost as described in Section of Counting Client Assets (CA-C).

    Child care hours and self-employment – The child care hours are determined by taking the income after costs and dividing it by the Oregon state minimum wage for the business location. If the customer needs more authorized child care hours, they can choose which cost option they want to use. This will also affect the copay. For example, if a customer decides they need more child care work hours with zero deductions, they will get more authorized hours. However, their copay will be higher. The maximum authorized hours for self-employment cannot exceed 172 coded on UCMS.

    Example 1: Benny is self-employed out of his home in Portland. Benny’s gross income is $1,500 for two people. Benny does not want to use any cost deductions.  To determine the copay the full $1,500 is used. SLF C 1500. To determine his child care hours, use $1,500 and divide it by the state minimum wage for Portland $9.75 = 153.8 (154) child care hours.

    Example 2: June is self-employed with her business location in Albany. June’s total gross income is $1,500 for two people. She wants to use the 50% deduction and has at least $1 in costs.  Apply the 50% deduction 1500 – 50% = $750.0 Code the SLF C 750 to determine the correct copay. To calculate the authorized child care hours use $750 divide by the state minimum wage for the Albany area $9.50 = 78.9 (79) child care hours.

    NOTE
     

    June’s actual child care need should be considered. If June reported she was working 15 hours a week, there is no need to authorize the 79 hours a month. Her authorized hours would be 15 x 4.3 = 64.5 (65) hours per month.

    After subtracting the deduction, if any, from the gross self-employment income, what remains is used to determine the copay and is the amount to be coded as SLF on UCMS.

    Self-Employment; Costs That Are Excluded To Determine Countable Income Rule
    461-145-0920 — Self-Employment; Costs That Are Excluded To Determine Countable Income

    Self-Employment; Determination of Countable Income Rule
    461-145-0930 — Self-Employment; Determination of Countable Income

  9. Determining the copay
  10. The copay is calculated by a mathematical formula that gradually increases the copay as family income increases. This calculation is available on the Department of Human Services - Self-Sufficiency Programs Web page and can be accessed by going to http://www.dhs.state.or.us/caf/ss/erdc/index.html.

    To determine the correct copay amount, mark the circle based on whether the family is a new applicant or recertification. Next enter the number of persons in the ERDC benefit group in the Choose Family Size: field. Make sure to include all adult members of the filing group as well as older children who do not need child care.

    Enter the monthly income amount in the Enter Monthly Income field. Click on Calculate. The copay amount will appear in the Estimated Copay Amount field. If the customer is over the income standard for the ongoing and exit limit only, the screen will say Income Exceeds Eligibility For Child Care Services. The copay calculator will not indicate if the family is over the initial income limit.

    Lower copays for families choosing a QRIS star rated provider – The QRIS is the Quality Rating and Improvement System. It is a way a provider can prove that they have met a certain level of quality. A provider can earn a 3, 4 or 5 star rating on the QRIS.

    When a family chooses a high quality, QRIS star rated provider, their copay will be lowered:

    $27 copay will be waived to $0
    $28-$200 copay will be lowered by $20 a month
    $201 or greater will be lowered by 10 percent

    The lower copay will start the month after their case has been connected to a QRIS star rated provider. The QRIS star rated provider does not have to be the primary provider on the case, it can also be a secondary or back up provider. The parent will receive a notice stating their new copay amount, the start date and the reason why their copay is going down.

    When a family is no longer connected to a QRIS star rated provider, their copay incentive will end. The system will automatically send a reduction notice to the parent stating their new copay amount, the start date and the reason why their copay is going up.

    The new copay amounts will appear on the WCMI screen for the family’s case.

    Child Care Eligibility Standard, Payment Rates, and Copayments Rule
    461-155-0150 — Child Care Eligibility Standard, Payment Rates, and Copayments

    Income Standards; Not OSIP, OSIPM, QMB Rule
    461-155-0180 — Income Standards; Not OSIP, OSIPM, QMB

    Use of Income to Determine Eligibility and Benefits for ERDC Rule
    461-160-0300 — Use of Income to Determine Eligibility and Benefits for ERDC

  11. ERDC Income Quick-Reference Chart
  12. This chart does not include treatment of resources. The ERDC program has a $1,000,000 resource limit that is self-attested by the client. For more information, see section 3 above.

    Type of income Exclude Count as Earned Count as Unearned
    Adoption Assistance (461-145-0001) x    
    Annuities, Dividends, Interest and Royalties (461-145-0020) (461-145-0108)     x
    Child Support and Cash Medical Support
    (461-145-0080)
        x
    Contributions (461-145-0086)     x
    Disability Benefit received monthly or more frequently (461-145-0090)     x
    Disaster Relief (461-145-0100) x    
    Domestic Volunteer Services Act (VISTA, RSVP, SCORE, ACE) (461-145-0110) x x
    (applicant)
     
    Earned Income Tax Credit (EITC)
    (461-145-0140)
    x    
    Educational Income (461-145-0150)
    • Title IV and BIA
    • Non-title IV or BIA (remainder after deducting
      costs)

    x
    x (actual payment
       
    Energy Assistance Payments (461-145-0170) x    
    Food Programs Other than the SNAP Program
    (461-145-0190)
    x    
    Foster Care Payments and Guardianship Assistance Benefits (461-145-0200)
    x
       
    Gifts and Winnings (cash) (461-145-0210) x    
    HUD (461-145-0230)
    • Paid to member of financial group
    • Youth build
    x x  
    Income-Producing Sales Contract
    (461-145-0240)
    • Income (minus costs)
      x  
    Independent Living Subsidies (461-145-0255) x    
    Indian/Native American Benefits (461-145-0260) x    
    Individual Education Account (461-145-0145)
    (while it accumulates, is kept, and withdrawn for education)
    x    
    Inheritance (cash) (461-145-0270) x    
    In-Kind Income (461-145-0280)
    • Earned
    • Unearned
    x x  
    CC-Job Corps (461-145-0290)   x  
    JTPA (461-145-0300)
    • Needs-based stipend
    • OJT and work experience
      x x
    Life Insurance payments to beneficiary (461-145-0320)     x(allow up to $1500 for costs)
    Loans - Interest from loan being repaid to client
    (461-145-0330)
        x
    Lodger income (461-145-0340)   x(SLF)  
    National and Community Services Trust Act (461-145-0365)
     • Child care allowance when client pays provider
     • Child care allowance when client does not pay provider
     • NCSTA payment if not paid to caretaker of children
     • NCSTA payment if paid to caretaker of children

    x
    x
    x x
    Older Americans Act (461-145-0370) x    
    Pension and Retirement Plans paid monthly (461-145-0380)     x
    Personal Injury Settlement (461-145-0400) x    
    Program Benefits (461-145-0410)
    • Paid directly to client

    x
       
    Radiation Exposure Compensation Act (461-145-0415) x    
    Refunds (461-145-0435) x    
    Reimbursements (461-145-0440)
    • Noncash or used for specific item
    • Non-DHS ICCP reimbursement for child care
    x   x
    Annuities; Not OSIPM (461-145-0020)
    Royalties
    • Doing activity to accrue royalties
    • Not doing the activity
     

    x



    x
    Self-Employment (461-150-0090)   x  
    Social Security Benefits (461-145-0490)     x
    Spousal Support (461-145-0505)     x
    Supplemental Security Income (SSI) (461-145-0510)     x
    Strikers' Benefits (461-145-0525)     x
    Unemployment Compensation (461-145-0550)     x
    Uniform Relocation Act reimbursement (461-145-0560) x    
    USDA Meal Reimbursement (461-145-0570)
    • Paid to provider
    • For a financial group's children
      x(SLF) x
    Veterans' Benefits (461-145-0580)
    • Aid and Attendance
    • Spina Bifida Payments to Children
    • Other monthly payments

    x
    x
      x
    Victim's Assistance (461-145-0582) x    
    Vocational Rehabilitation Payment (461-145-0585)
    • Payments for food/shelter/clothing (for other see Reimbursement)
        x
    Worker's Compensation (461-145-0590)   x  

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