UPSTATE & NYC MESSAGE   
DSS-4357EL                                                                
WGIUPD                  GENERAL INFORMATION SYSTEM               05/11/01 
                   DIVISION:  Temporary Assistance 

GIS 01 TA/DC015                                                            
                                                                          
TO:  		Commissioners                                                         
 
FROM:  	Patricia A. Stevens, Deputy Commissioner, Division of Temporary  Assistance  
                                                       
SUBJECT:  Temporary Assistance(TA): Budgeting of Initial or Increased  Earnings                                                         
EFFECTIVE DATE:  June 1, 2001                                              
CONTACT PERSON:  Temporary Assistance Team Representative at 1-800-343-8859;
        Central Team (TA) 4-9344.                
                                                                           
	This is to clarify TA policy regarding the budgeting of initial and increased earnings for TA recipients. Social service districts were instructed in 94 INF-56 that when a TA recipient began employment the district must not initiate action to reduce or close the TA case until the recipient received his/her first paycheck.

	Unfortunately, because of necessary processing time-frames, timely notice requirements and systems constraints, it is not possible to reduce or close the TA case for initial or increased earnings until the start of new semi-monthly payment cycle (i.e. the first or sixteenth upstate or cycle A or B in NYC) at the earliest. In most circumstances, it is usually not possible to reduce or discontinue TA benefits until at least one full semi-monthly benefit cycle has elapsed. Because of this, districts normally have calculated and began recoupment of an overpayment for all new initial or increased earnings cases.

	A number of districts have expressed concern regarding the need to calculate a TA overpayment in these instances. The primary concern is that this process is time-consuming, complex in nature and requires the involvement of several local staff. Other districts have also questioned whether this process is counterproductive under welfare reform. This concern focuses on the negative message being translated to clients when they start employment. Under the current system, the first notice the recently employed recipient receives is for a grant reduction/closing and overpayment recoupment/recovery.

	This is to clarify to districts that when initial or increased earnings have been reported in a timely manner (i.e. ten days after receipt of first pay), there is a reasonable administrative time period that districts require to process the change.  When initial or increased earnings are reported timely, districts must not calculate income related overpayments until at least one full semi-monthly payment cycle has elapsed. An example will illustrate. A TA recipient begins employment and receives his/her first pay during the first half of the month (i.e. 1st through 15th) of May. The district must not budget these earnings for overpayment purposes until June 1st and no overpayment may be calculated for May.

	It  is anticipated that this clarification will result in administrative savings for districts and better support welfare reform.

Food Stamp (FS) Implications

	As noted in the Food Stamp Source Book section VI-B-2, when a change results in a decrease in FS benefits, the local district shall issue a notice if intent to Change FS Benefits (DSS-3620) within ten days of the date the change was reported. This notice must be timely and adequate, allowing at least ten days notice prior to the change taking effect. The decrease or termination in the benefits must be made effective for the month following the month in which the notice of adverse action period has expired, provided a fair hearing and continuation of benefits have not been requested.

Medicaid Implications

	Families that lose eligibility under the Medicaid categorical group, "Low Income Families", due to increased income may become eligible for Transitional Medicaid (TMA). TMA requirements have not changed. In the example cited above, if earnings resulted in TA case closing, TMA would begin June 1 as long as the other TMA requirements were met. This follows current procedure.

	An ADM is being drafted that will provide districts with more information regarding this policy especially in the area of overpayment procedures.