SR 97-14 Dated 07/97

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

/3This SR releases the following policy changes effective July 1, 1997, and revises Family Assistance Manual (FAM) Parts 601 and 935.

 The TANF Standard of Need (SON) will increase effective, July 1, 1997. The annual update for the Standard of Need in the TANF Program is mandated by the NH Legislature per RSA 167:7, II. (The TANF payment standard will remain the same.)

 Effective July 1, 1997, a cost of living increase will be applied to the gross income limits for child care step 2 (140% of the poverty level) and step 3 (170% of the poverty level).

POLICY

TANF Changes

TANF Maximum Standard of Need

The new maximum TANF SON and Basic Maintenance Needs Allowance (BMNA) are provided below. The maximum SON equals the BMNA plus the maximum monthly Shelter Payment Allowance of $243.

TANF SON and BMNA Chart

* For household sizes over 12, calculate the BMNA by adding the $67 for each additional

person to the basic maintenance payment allowance (See FAM Part 601, Table B)

divide the result by 18.62%, and add the maximum shelter allowance of $243 to determine

the maximum SON.

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. If individuals currently ineligible due to receipt of lump sum income reapply, they must have their period of ineligibility recalculated using the new SON for months after July 1. A recalculation must be redone if requested by the individual. A new NOD is required if the change results in a different period of ineligibility.

District Offices will receive a report under separate cover to identify cases currently denied or closed due to receipt of lump sum income. The report targets cases with a denial or closing date from 1/1/97 through 6/30/97, since the last SON adjustment took effect on January 1, 1997.

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

The SON is used for TANF deeming from parents, including ineligible alien parents, alien sponsors, and for TANF 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 identify currently open cases with deemed income. District Offices will also receive a report of cases currently denied or closed due to deemed income with a denial or closing date from 1/1/97 through 6/30/97.

Child Care Changes

The gross income limits for child care eligibility at steps 2 and 3 will increase effective July 1, 1997 as noted below. The child care reimbursement rates remain unchanged.

  Gross Income Limits for Step 2 - 140% of Poverty Level

  Gross Income Limits for Step 3 - 170% of Poverty Level

SYSTEM CHANGES

Systems changes for the TANF SON increase, and the new child care eligibility limits will be programmed to take effect on July 1, 1997, and will apply to any of these cases computed or recomputed on or after July 1, 1997.

The TANF SON increase will only impact TANF deeming and lump sum calculations. EMS will not trigger a recomputation or produce Forms 801 for these TANF cases.

EMS will recompute child care eligibility for open social service (SS) cases with income greater than the step 2 income limits prior to July 1, 1997 , but less than or equal to the new step 2 income limits. No other cases will be recomputed for the mass change. These cases now qualify for a higher rate of reimbursement. The Notice of Decision message printed for these cases is as follows:

THE INCOME LIMITS HAVE GONE UP FOR CHILD CARE ELIGIBILITY. YOU NOW QUALIFY FOR A HIGHER RATE OF REIMBURSEMENT. FAMILY ASSISTANCE CHAPTER 900.

The IS display will be updated for any cases selected for recomputation as a result of the mass change. The special batch number of 970630 will be assigned to reflect the year, month and date of the mass change.

IMPLEMENTATION

Processing of these changes will occur after the daily run of June 30, 1997 and before the daily run of July 1, 1997. All normal output will be produced for this run. The changes identified in this SR will be implemented by July 1, 1997.

CLIENT NOTIFICATION

A special mailing will be done to advise clients who were denied or closed due to receipt of lump sum or deemed income of the revised TANF Standard of Need. A copy is attached for reference. Clients will be advised of the new child care income limits at applications or redeterminations on or after July 1, 1997.

TRAINING

No training is planned. Requests for training will be coordinated by the OES Regional Administrators.

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 FAM holders.

KW/DTA/SJC