TO:	Commissioners, TA/FS Directors, MA Directors, CNS/WMS Coordinators

FROM:	Patricia A. Stevens, Deputy Commissioner, Division of Temporary Assistance

SUBJECT: Follow-up to GIS 02 TA-DC022, Chapter 246 of the Laws of 2002 and the Impact on the Full-time Earnings of Dependent Children

EFFECTIVE DATE: September 17, 2002

CONTACT PERSON:	Central Team (TA) at 1-800-343-8859; extension 3-9344, Eastern Team (FS); extension 3-1469, Western Team (HEAP); extension 3-0332.
	Medicaid contacts: Local District Liaison at (518) 474-8216, or, for New York City, (212) 268-6855.

This is to advise districts that GIS message 02 TA-DC022 which outlined the treatment of student earnings contained an inaccuracy (regarding the age of students) in the Food Stamp implications section. Please replace 02 TA DC022 with this corrected GIS message.

Recent changes in Social Services Law 131-a, promulgated by Chapter 246 of the Laws of 2002, require districts to disregard the full-time earnings of a dependent child who is a full-time or part-time student when determining eligibility or degree of need for temporary assistance (TA).  This includes permanently disregarding these earnings when applying the gross income test (18 NYCRR 352.18).  There is no change to the way part-time earnings of dependent full-time and part-time students are treated.  These part-time earnings remain exempt when determining eligibility and degree of need.

A dependent child is defined in 18 NYCRR 369.2(c) and for these purposes is one who is attending a school, college or university, or a course of vocational or technical training designed to prepare a person for gainful employment or participation in Job Corps.  Part-time attendance continues to be defined as a schedule equal to at least one-half of a full-time curriculum as determined by the educational authority involved.  Districts must continue to consider Family Assistance essential persons under the age of 21 as dependent children for the purposes of applying this disregard.  The earnings of a minor not residing with a legally responsible relative or other caretaker as defined by 18 NYCRR 369.1(b) are budgeted.

For TA, districts must immediately cease budgeting full-time earnings of dependent children who are full-time or part-time students.  Additionally, districts must review all applications and active cases where these earnings determined eligibility or need, including applications denied on or after July 30, 2002.  Districts must then determine if adjustments are necessary and make them accordingly.  For active cases, the adjustments must occur by the next recertification or next case contact.  Due to the anticipated small number of cases affected by this change, and the lack of reasonable identifiers, OTDA is not producing lists to identify these cases.

Food Stamps Implications

The earned income of any household member who is under the age of 18, who is an elementary or secondary school student, and who lives with a natural, adoptive, or stepparent or who is under the parental control of a household member other than a parent continues to be exempt when determining eligibility for food stamps. An elementary or secondary school student is someone who attends elementary or secondary school, or who attends classes to obtain a general equivalency diploma (GED), that is recognized and supervised by the student’s local school district or who attends elementary or secondary classes through a home-school program recognized or supervised by the student’s local school district.

There is no change to the FS eligibility process for those enrolled in institutions of higher education.  Districts should refer to the food stamp eligibility process for students, ages 18-49 and enrolled at least halftime in an institution of higher education outlined in section V-B-4.1 of the Food Stamp Source Book.

Medicaid Implications

Medicaid treatment of earnings of students has not changed.  For purposes of determining Medicaid eligibility, full-time earnings of full-time students under age 21 are disregarded for up to 6 months per calendar year under Low Income Families (LIF) and Aid to Dependent Children (ADC)-related (including expanded eligibility) determinations.  Therefore, after the first 6 months of applying the disregard in a calendar year, separate Medicaid eligibility determinations are required for Temporary Assistance recipients under age 21 who are full-time students and employed full-time.  Earnings of part-time students under age 21 who work full time are counted in determining Medicaid eligibility under LIF and ADC-related determinations.  Separate Medicaid eligibility determinations are needed for Temporary Assistance recipients under age 21who are part-time students who work full-time.

For certified blind and certified disabled students under the age of 22, up to $1,320 per month (up to a maximum of $5,340 annually) of earnings is disregarded by Medicaid.  (See GIS 02 MA/007 for further information on the SSI-related student earned income disregard).

An administrative directive will follow.