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(Revised 3/03 ML #2830)
Prospective budgeting is determining eligibility and benefit amounts for the initial two months based on the best estimate of income and circumstances in those months. This estimate shall be based on recipients' and county staffs' reasonable expectations and knowledge of past, current, and future circumstances. All factors of eligibility except income must be considered prospectively each month to determine continued eligibility after the initial two months. Also see page 173, "Prospective Eligibility for Ongoing Cases." and page 183, "Budgeting for Persons Being Added to the Household."
If prospective income during the initial two months, or prospective assets and other circumstances during any month, do not cause ineligibility, the program case manager will use prospective income during the initial two months to determine benefits and retrospective income from the base month to determine benefits for subsequent months.
If prospective ineligibility in the second initial month is caused by the anticipated receipt of an extra check from a recurring earned or unearned income source, and ineligibility is expected to last for one month only, the household or case is to be suspended for that month and the following month is used as the second prospective month. If the household or case is prospectively ineligible for any other reason, the filing unit or case must be closed on a prospective basis.
Two-month retrospective budgeting is the computation of a household's benefits based on actual income and expenses that occurred two months prior to the month for which the benefit is computed. For example, March benefits will be determined based upon the income and expenses that actually existed in the month of January. If retrospective income ineligibility is caused by receipt of an extra check from a recurring earned or unearned income source and ineligibility is expected to last for one month only, the county social service office will suspend the household or case for that month.
Employees are normally paid on the same work day(s) of each month. Occasionally, however, an employee normally paid on a given day of a month is paid earlier or later than normal. In such instances, income shall be considered as being received on the date the income is normally received. For example, a pay check normally received on the first day of January is paid prior to January 1, due to the holiday. This income should be budgeted as received in January, because January 1 is the normally occurring schedule.
An employee may be paid a few days later than the normally scheduled pay date. For example, an individual usually paid on December 31 is paid after January 1. This income should be considered as received in December, because the normally occurring schedule is a December pay date.
Yearly self-employment income and income received on a contractual basis must be averaged over the number of months covered by the prorate or contract even if the income is paid in fewer months at the convenience or option of either party. This treatment of income as a result of prorating or contract dates applies to an applicant as well as to a recipient and is used to determine eligibility as well as the amount of assistance.
