SR 96-29 Dated 01/97

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases the new AFDC SON, effective, January 1, 1997. This SR also corrects an error that occurred when the AFDC Standard of Need was developed for July 1, 1995 through December 31, 1996 and releases the annual update for the Standard of Need in the AFDC Program, mandated by the NH Legislature per RSA 167:7, II. There is no adjustment to the AFDC payment standard. Family Assistance Manual (FAM) Part 601 has been revised.

The food stamp excess shelter deduction has changed from $247 to $250 per month, effective January 1, 1997. Table I, Food Stamp Deductions, in FAM Part 601 has been changed accordingly. In addition, this SR corrects FAM Part 603 to show that legally binding child support payments made to a non-household member are allowed as a deduction in the food stamp net income and benefit computations, as required by SR 94-62. FAM Part 603 has also been revised to show that depreciation of equipment and vehicles and personal taxes are not allowed as self-employment expenses in the AFDC Program. Both of these corrections reflect existing policy.

POLICY

The following changes will be effective January 1, 1997.

AFDC Changes

AFDC Maximum Standard of Need

Adjustments to the AFDC SON are usually effective July 1 of each year. However, the SON adjustment was delayed this year until rulemaking for the new figures could be completed. The new AFDC maximum Standard of Need (SON) and Basic Maintenance Needs Allowance (BMNA) are given below. These amounts are lower than last year's figures. An error was discovered in the calculation of last year's SON which caused the SON to be higher than it should have been. When the error was discovered, the Division recalculated the AFDC SON for July 1, 1995 through December 31, 1996, and then applied a cost of living adjustment to the newly recalculated figures. This caused the AFDC SON for January 1, 1997 through June 30, 1997 to be lower than last year's SON. The maximum SON equals the BMNA plus the maximum monthly Shelter Payment Allowance of $243.

Lump Sum Calculations

Individuals who receive lump sum payments are ineligible for assistance for the number of months resulting from dividing the lump sum amount (plus any other monthly income) by the SON. Federal regulations prohibit recalculating the period of ineligibility due to decreases in the Standard of Need. Therefore, District Offices must not use the new SON to alter any original lump sum calculations done from July 1, 1995 through December 31, 1996.

AFDC Deeming (Grandparent, AFDC-AP Under 18, and Aliens)

The SON is used for AFDC deeming from parents, including ineligible alien parents, alien sponsors, and for AFDC three generation deeming. Since the SON has changed, currently open cases with deemed income must be recalculated at the next redetermination to determine a new deemed income amount. District Offices will receive a report under separate cover to facilitate identification of these cases.

AFDC Gross Income Limits

With the new SON figures, the following maximum monthly Gross Income Limits are effective January 1, 1997. These figures are based on a maximum monthly shelter figure of $243. The Gross Income Limit for any particular case is 185% of the SON.

Food Stamp Changes

The food stamp excess shelter deduction has changed from $247 to $250 per month, effective January 1, 1997. This figure is used to compute food stamp eligibility for target population households.

SYSTEM CHANGES

AFDC SON Changes

Systems changes for the AFDC SON decrease will be programmed to take effect on January 1, 1997, and will apply to AFDC financial assistance cases computed or recomputed on or after January 1, 1997. The AFDC SON decrease will only impact AFDC deeming and lump sum calculations as explained in the text of this SR. EMS will not trigger a recomputation for these AFDC cases. Therefore, the IS display will be not be updated, and a special batch number will not be assigned. No Forms 801 will be generated as a result of this mass change.

Food Stamp Changes

? The EMS cut-off for all cases to be included in the mass change is December 31, 1996. The last daily before the mass change will be run December 31, 1996.

? The mass change will be run on the evening of December 31, 1996 which is after the daily run for that date.

? Turnaround Forms 801 will be generated for food stamp cases which receive a change decision (increase, decrease, close). These will have the notation ''FOOD STAMPS, ADULT CATEGORIES, AND SSA/SSI/VA MASS CHANGE - JANUARY 1997" and will be available for pickup by January 6, 1997.

? Cases in an advance notice period for closing will not be selected for the mass change.

? Cases in advance notice for a decrease will be recomputed as part of the mass change.

? The major ATI run for January follows the mass change.

? Following the mass change, food stamp closings will be run to terminate all cases with a redetermination date of 12/25/96. These cases have both a mass change turnaround Form 801 and a 545 closing Form 801.

? The 545 closing Form 801 is the most recent and must be used for any subsequent transaction on these cases.

? Cases receiving a mass change Form 801 will be posted to the IS display. The special transaction code for the mass change is XX, the file update date is 12/31/96 and the special batch number is 961231.

IMPLEMENTATION

AFDC SON Change

Processing of the AFDC SON change will occur after the daily run of December 31, 1996 and before the daily run of January 2, 1997. All normal output will be produced for this run. The changes identified in this SR will be implemented in the system by January 1, 1997. District Offices are not required to take corrective action for the period beginning July 1, 1995 through December 31, 1996 as a result of the AFDC SON calculation error.

Food Stamp Excess Shelter Deduction

Manual Issuances - Rollbacks, Special Instructions

? After the mass change cut-off date, all benefits generated by EMS are calculated using the new excess shelter amount.

? To issue benefits for months prior to January 1997, use the excess shelter amount in effect prior to this SR.

? If a manual issuance is required for a new opening, complete in accordance with procedures contained in Case Action Order Handbook ITEM A.1. December benefits are designated as type 1c, "Variable Basis of Issuance" and months prior to December as type 2g, "Rollback Period." In the explanation block write, "Benefits due prior to January 1997 Mass Change."

? Complete manual issuance for expedited combined allotments according to CAOH ITEM A.1 and manual issuance form instructions. Remember that most manual issuances can be done on the system.

? Table I, Food Stamp Deductions, in Family Assistance Manual Chapter 600 which is dated October 1996 (SR 96-49) should be retained for reference for retroactive benefits until it is no longer needed.

CLIENT NOTIFICATION

Clients will be advised of the new AFDC SON for applications or redeterminations on or after January 1, 1997.

The following NOD reason message is generated for food stamp cases having an increase as a result of the mass change. EMS will use a standard message for any closings or decreases.

ON JANUARY 1, THE LIMIT ON THE SHELTER COST DEDUCTION WILL INCREASE DUE TO FEDERAL CHANGES. WE HAVE USED THE HIGHER SHELTER COST LIMIT TO REFIGURE YOUR FOOD STAMP BENEFITS. FAMILY ASSISTANCE MANUAL CHAPTER 600.

TRAINING

No training is planned due to the procedural nature of this SR.

POSTING INSTRUCTIONS

DISPOSITION

This SR may be destroyed after the contents and posting instructions have been carried out.

DISTRIBUTION

The SR only is being distributed according to the narrative distribution list for the Family Assistance Manual. The SR and the manual pages will be distributed to all holders of the FAM.

OES/SJC:s