Code of Maine Rules
10 - DEPARTMENT OF HEALTH AND HUMAN SERVICES
144 - DEPARTMENT OF HEALTH AND HUMAN SERVICES - GENERAL
Chapter 331 - PUBLIC ASSISTANCE MANUAL (TANF)
Chapter IV - Budgeting Process

Universal Citation: 10 ME Code Rules ยง IV

Current through 2024-38, September 18, 2024

A. PROSPECTIVE BUDGETING: Eligibility and benefit levels are calculated for all assistance groups using prospective budgeting. Prospective budgeting is a method by which benefit levels are calculated using a best estimate of income, disregards, deductions and other circumstances of individuals who are the members of the assistance group and individuals whose income must be deemed to the assistance unit. For purposes of determining the amount of the TANF payment and the amount of income to be counted, the payment month and budget month are the same. The following definitions are used in this chapter:

(1) Prospective eligibility means that eligibility for any given month is determined by estimating, as accurately as possible, whether all eligibility factors will be met during that entire month.

(2) Income is available when it is received or can be reasonably anticipated. Reasonably anticipated means that the amount of income can be estimated, and the date of receipt is known.

(3) Best Estimate: The best estimate is based on the Department's reasonable expectation and knowledge of current, past, or future verified circumstances. In making this determination the concepts of significant and non-significant income changes and averaging must be used.

(4) Significant Income Changes: Changes in sources or amounts of income which are expected to continue long enough to be reflected in at least one check, such as starting or losing a job or a new source of unearned income, or changes in hours and wages.

(5) Non-Significant Income Changes: Changes that are temporary, short term and not part of the ongoing pattern, such as fluctuations due to irregular overtime or unpaid days off and other changes not expected to continue beyond the month of occurrence. Variations in income caused by non-significant changes are not considered underpayments or overpayments.

B. INCOME DISREGARDS: Income disregards are certain income amounts subtracted from the filing unit's countable gross income to determine the total countable income amount. For self-employment the income is annualized, and the applicable disregards are deducted from the monthly average.

(1) Disregards will not be applied to, and any Step disregard month forfeited by, any individual for any month in which the individual, without good cause, terminates their employment or reduces their earned income within the 30 days preceding that month; refuses to accept employment when offered within 30 days preceding that month; fails to report an increase in earned income within 10 days from the date of income receipt; or are sanctioned for noncompliance of any TANF/PaS requirement.

(2) Work Related Disregards. These disregards are applied to applicants to determine initial eligibility and to program recipients in the assistance group who are employed.
a) Earned Income Disregard. Each individual in the filing unit who is employed, including self-employed, is eligible for the following disregards from earned income:
i. One hundred eight dollars; and

ii. Fifty percent of the remaining earnings.

b) Child or Dependent Care. After applying all the other disregards, the cost of care for each dependent child or incapacitated adult needing care while the TANF recipient works. Deduct the actual cost up to $175 per month per dependent or $200 for children under the age of 2. Dependent care is not allowed as a deduction if paid to anyone living in the home.

(3) Step Disregard: The following disregard is applied to the individual's earned income when determining benefit levels for the assistance group when the individual included in the assistance group meets one of the following criteria. They are:
a) A current recipient with earned income; or

b) An applicant with earned income and the assistance group has passed the income eligibility test located below in (F)(1).
i. The Step disregard is applied to each recipient with earnings as defined above. The two-steps included in the Step disregards are each restricted to a three-month maximum. When Step one is activated the Step disregard will continue for the maximum six months consecutively unless the recipient reports that all earned income for that recipient has ended. When earned income has ended the Step month count will end the month following the month the Step disregard is used to determine benefits. The Step disregard is applied as follows:
a. Step one: 100% of earned income for the individual is disregarded for a maximum of three months for either an applicant with earned income or for a recipient with a change of earned income.

b. Step two: 75% of earned income for the individual is disregarded for a maximum of three months following exhaustion of Step one months during a period of TANF and/or PaS eligibility.

c) In the event that the Step disregard does not increase the TANF/PaS benefit beyond the benefit amount determined by the use of the Work Related ((2) above) and Other disregards((4) below); then the Step disregard is not applied, and the Step disregard usage month is not counted for the individual.

d) For any period in which a household's food supplement assistance is reduced below $50 as a result of the use of the Step disregard; the household will be issued a TANF Earnings Food Benefit of up to $50. This benefit is issued as a food assistance benefit, not a cash benefit, and may be used only as permitted by Maine's Food Supplement Program (10-144 C.M.R. Ch. 301). The combined food assistance benefit is not to exceed $50 in a benefit month.

e) The Step disregard is not used to determine TANF countable income for the purpose of determining eligibility for a Special Need Housing Allowance or Gap child support payments.

f) The Step disregard is not used when determining eligibility or benefits levels for Emergency Assistance, Alternative Aid, Transitional Child Care or Transitional Transportation.

(4) Other Disregards. The following disregards may be applied to individuals with earned or unearned income. When the recipient has both earned and unearned income, the applicable disregards are allowed once.
a) Dependent Allocation. If an adult member of the assistance group is legally responsible for the support of others living in the home who are not included in the of TANF or PaS assistance group and who do not have assets more than the allowable limit, allocate the appropriate full need standard from the adult's remaining income. This does not include the needs of individuals required to be in the filing unit but who have been sanctioned. The dependent allocation applies to both earned and unearned income.

b) Child Support/Alimony Deduction. If an adult member of the assistance unit is legally responsible for and actuallypaying alimony to a former spouse or child support, the support payment is allowed as a deduction. This deduction is only allowed if the payee is living outside the home.

C. DEEMED INCOME: The income of certain individuals who live with and are related to the minor child, must also be considered through the deeming process. The deemed amount is counted as unearned income to the assistance unit.

(1) Individuals whose income is deemed:
a) Excluded Stepparent: When the stepparent has chosen to be excluded from the assistance group, the disregards and allocations in (B) above, will be applied to their gross monthly income. The remainder of the excluded stepparent's income is budgeted as unearned income to the assistance group. Assets solely owned by the excluded stepparent are not considered available to the filing unit even if the legal parent is included on the grant.

b) Lump Sum Income of Excluded Stepparent: The lump sum income of the excluded stepparent is considered as any other income. If the assessed income, including the lump sum, is greater than the filing unit's need standard for the month, the filing unit is ineligible for that month.

(2) Sanctioned specified relatives: Specified relatives of a child in the filing unit living in the home and are disqualified from receiving TANF benefits. When the specified relative has been sanctioned and removed from the assistance group, they are not eligible for any disregards. Income and assets of the sanctioned specified relative are counted in full.

(3) Sponsors of Aliens and their Spouses: These are people who have signed an affidavit of support as an immigrant's condition of entry into the United States. Sponsors may or may not live with the unit. See (D)(5), below.

D. TREATMENT OF SPECIAL INCOME:

(1) Income of specified relatives and their spouses who are not parents of the dependent child. When specified relatives are excluded but claim the children as dependents for income tax purposes, they have acknowledged that they meet at least half of the child's needs. The benefit level will be determined using half of the appropriate full need standard for the child as countable unearned income.

(2) Self-Employment Income: Self-employment income is income earned by individuals engaged in their own business enterprises. Self-employment income is averaged over a 12-month period. This applies even when the income is received in a shorter period. If the 12-month average is not an accurate reflection of circumstances or if a business has been in operation less than a year, income will be averaged for the months in operation or treated like any other fluctuating income based on verification provided. Seasonal self-employment which supplements other income shall be averaged over the season.
a) Verification: Self-employment is verified in the following method:
i. Income tax returns; provided the business has been operating long enough to have filed and the prospective year is anticipated to be similar to the year reflected in the taxes.

ii. Business records may be provided for those that have been operating less than one year or when it is claimed that circumstances are different than during the previous tax year.

b) Determination of Income.
i. Use all gross self-employment income including the full amount of capital gains and depreciation claimed on the tax return.

ii. Subtract the cost of producing the income.
a. The following expenses may not be subtracted:
1. Payments on the principal of the purchase price of income producing real estate, capital assets, equipment, machinery or other durable goods. Interest on these payments is allowed.

2. Net losses from prior periods.

3. Federal, state and local income taxes, retirement plans, and work-related personal expenses such as transportation to and from work.

4. Depreciation

b. The following expenses must be subtracted:
1. Cost of labor including, FICA, State and Federal taxes

2. Cost of materials

3. Rent

4. Interest

iii. Divide the net earnings by the number of months over which the income is to be averaged.

iv. Apply disregards and treat the net self-employment income as any other earned income.

(3) Income from Boarders and Roomers: The cost of producing income by providing "board and room" will be the actual cost of providing meals and a room per month per individual. "Room" only is the actual cost of providing a room per month. "Board" only is the actual cost of providing meals per month.

(4) Non-Recurring Lump Sum Income: Non-recurring lump sum income may be in the form of retroactive payments such as Social Security, Workers' Compensation, Unemployment, VA or other benefits, settlements, inheritance, lottery winnings, pay raises, divorce settlements and the like. Non-recurring lump sum income, after allowable exclusions, shall be considered available to meet current and future needs of the filing unit.
a) Income representing the change from a non-liquid to a liquid asset, such as the sale of marital property is considered an asset, not a lump sum.

b) Determining the Net Lump Sum.
i. Disregard from the gross amount:
a. Attorney's fees related to the lump sum;

b. Any portion earmarked and verified as having been used for the purpose for which it was paid, such as monies for back medical bills resulting from accident or injury, funeral and burial costs, replacement or repair of a lost resource, and the like;

c. Any portions of non-recurring lump sum income that are collected by the Maine DHHS Division of Support Enforcement and Recovery to satisfy past-due child support debts;

d. Up to $10,000 of non-recurring lump sum income must be disregarded as income and excluded as an asset if used for the following purposes within 30 days of its receipt:
1. Deposit in a Family Development Account or Separate Identifiable Account set up as authorized by statute, 22 M.R.S. §3762,
(a) The Department will disregard from income and exclude as an asset nonrecurring lump sum income used within 30 days of receipt or money withdrawn from a separately identifiable account, approved by the Department, or a Family Development Account to meet the following needs:
(i) Expenses for education or job training to attend an accredited or approved post-secondary education or training institution;

(ii) The purchase or repair of a home that is the family's principal residence;

(iii) The purchase or repair of a vehicle used for transportation to work or to attend an education or training program;

(iv) Capital to start a small business for any family member 18 years of age or older; or

(v) Health care costs of a household member that are medically necessary and are not covered by public or private insurance;

e. To address an emergency that may cause the loss of shelter, employment or other necessities; or

f. To address other essential family needs approved by the Department.

c) Calculating the Period of Ineligibility: When the filing unit's total amount of countable earned and unearned income, excluding the TANF or PaS payment and including the net lump sum income:
i. Does not exceed the standard of need in the month of receipt, it is treated as any other income.

ii. Exceeds the standard of need, the filing unit is ineligible for a TANF or PaS payment for the number of months derived by dividing the total countable income for that month by the full need standard. Any remaining income is treated as income received in the first month following the period of ineligibility. The first month of ineligibility is the month the lump sum is received. Any TANF or PaS payment for that month is considered an overpayment unless the lump sum is timely reported.

d) Adjusting the Period of Ineligibility: The period of ineligibility may be shortened or ended when one of the following occurs.
i. There is an increase in the TANF or PaS Standard of Need;

ii. When an individual is added to the assistance group during the period of ineligibility, the need standard used in the recalculation of payment must include individuals who would otherwise be eligible for TANF or PaS, such as newborns, child returning home, or any other individuals required to be in the filing unit;

iii. There are medical expenses incurred and verified as paid by any member of the ineligible filing unit. The expenses must be equal or exceed the amount currently used in calculating the period of ineligibility; or

iv. There is a circumstance beyond the family's control which causes the filing unit to use the lump sum on the following verified exclusions:
a. Payment of funeral or burial expenses for a family member;

b. Travel costs related to the illness or death of a family member;

c. Repair or replacement of essentials lost due to fire, flood or other natural disasters;

d. Repair, purchase, or unreimbursed operating costs of a motor vehicle essential for employment, education, training, or other day-to-day living necessities;

e. Additional payments for medical bills or replacement of lost resources earmarked in the settlement; or

f. Money used to meet essential needs such as housing, utilities, food, clothing, furnishings and other necessities required for the health and safety of the family. This includes payment to prevent evictions and utility disconnects and situations when the verified current monthly shelter expenses exceed the filing unit's standard of need.

e) The decision to shorten the period of ineligibility must be made by a supervisor. The decision to end the period of ineligibility due to circumstances beyond the family's control shall be made by the TANF Program Manager.

(5) Income of Sponsors of Aliens: A sponsored alien is a person lawfully admitted for permanent residence to the U.S. for whom a person (the sponsor) has executed an affidavit of support (USCIS Form I-864, Affidavit of Support under Section 213A of the Act") on behalf of the alien. The date of entry or admission is the date established by the USCIS as the date the alien was admitted for permanent residence.
a) Deeming income of the sponsor: Sponsor deeming is a process used to determine the eligibility for and amount of TANF benefits that a sponsored immigrant may receive. These deeming rules only apply to sponsored immigrants who have executed the legally binding, I-864 Affidavit. The deeming period continues until the sponsored immigrant becomes a U.S. citizen, has earned, or can be credited with, 40 qualifying quarters of coverage as defined in Title II of the Social Security Act (42 U.S.C. 401 et seq.), departs the U.S. permanently, or dies.
i. Immigrants Required to File an I-864 Affidavit: Most family-based immigrants, including immediate relatives, family preference immigrants, and some orphans, must submit an affidavit of support on INS Form I-864 if they file adjustment of status or immigrant visa applications on or after 12/19/97. In addition, an employment-based immigrant who is coming to work for a relative or for a company where a relative of the immigrant owns 5% or more of the company must file an I-864 Affidavit. These are immigrants who have lawful permanent resident (LPR) status. Immigration through a family member or through employment are two paths to lawful permanent residency. The I-864 becomes enforceable at the time the immigrant becomes an LPR. Immigrants in these categories who have earned, or can be credited with, 40 qualifying quarters of coverage as defined in Title II of the Social Security Act, are not required to submit an I-864 Affidavit.

ii. The sponsor and the sponsor's spouse's income are counted in its entirety and is available to the sponsored immigrant in determining the sponsored immigrant's eligibility for benefits. No deductions are given. If a sponsor is liable for more than one immigrant, the deemed income and assets shall be divided equally among the sponsored immigrants.

iii. Exceptions to sponsor deeming: Sponsor deeming would not apply for a 12-month period if:
a. The sponsored LPR or certain family members have been determined to be victims of domestic violence or extreme cruelty. The 12-month period can be extended if the abuse or cruelty is recognized by a court order, an Administrative Law Judge, or the INS, AND the victim does not live with the batterer.

b. The sponsored LPR would be indigent (unable to obtain food and shelter without government assistance). If determined indigent, then only the amount of income and assets provided by the sponsor or the sponsor's spouse would be deemed to the LPR. Each indigent determination is renewable for additional 12-month periods.

(6) Attributed Tips: The recipient is responsible for maintaining a daily log of actual tips, which will be used to verify countable tip income for budgeting purposes. Tips attributed or allocated to employees by their employers on paystubs or W-2 forms are not considered actual tips and shall not be used in computing TANF and PaS payments.

(7) Child Support Paid by the Non-Custodial Parent: Payments from a non-custodial parent are considered child support and are the income of the child for whom the support is paid. When TANF is granted the household must surrender all court ordered or voluntary child support payments to the department.

(8) Child Support collected by the department: Child support is considered unearned income for the dependent child. Child support paid for an adult child over age 18 who no longer lives in the home is countable unearned income to the adult receiving the payment.
a) Pass Through Payments: Up to the first $50 per month per assistance unit of child support collected on the monthly support obligation for the assistance unit will be paid to the assistance unit. This payment is excluded as income and an asset in determining need and the amount of the payment. The pass-through payment amount will not be considered as part of any overpayment when support is received directly by the recipient and is not forwarded to the State.

b) TANF Supplemental Payments (Gap): When there is a deficit (gap) between the maximum TANF payment and the Standard of Need, the assistance unit may be eligible to receive a gap payment. Gap payments are made from the prior month's total child support collections, less the pass-through, if any. The maximum gap payment is the amount of the unmet need less countable income.

c) Excess Payments: When child support collected exceeds the debt owed by the non-custodial parent the excess amount may be paid to the family if there is no outstanding overpayment debt.

d) When current child support is collected and occasionally exceeds the total of the pass through, gap, and the benefit amount, the recipient is sent the excess and eligibility for TANF continues.

e) When it can be anticipated that the child support collected will routinely exceed the total of the pass through, gap, and benefit amount, eligibility for TANF ends.

E. INCOME CALCULATION:

(1) All income received in the four weeks immediately preceding the application or review must be verified.

Exception: When income stops, the Department will verify the termination and verify only the income received in the month of application and thereafter. This may be less than four weeks of income.

(2) Determine if there were any significant income changes or anticipated significant income changes.
a) Continuous changes will be used in determining the on-going estimate.

b) Anticipated significant income changes will be used only if they must be acted on now.

(3) Income Averaging: Convert the income not received or paid monthly to a monthly amount using the following methods:
a) Multiply weekly amounts by 4.3;

b) Multiply biweekly amounts by 2.15;

c) Multiply semimonthly amounts by 2; or

d) Average amounts received for a period of more than one month.

e) When less than a full month's income is anticipated, the actual monthly income will be used.

(4) Determine Gross Income: Gross income is income available during the budget month and is calculated before the application of any disregards and includes:
a) The total of earned and unearned income, of those individuals in the assistance group; and

b) The portion of any income deemed to the assistance group (see C, above).

(5) Apply Disregards in the following order:
a) For the initial income determination:
i. Earned Income Disregard

ii. Dependent Allocation

iii. Child Support/Alimony Deduction

iv. Child or Dependent Care

b) For the second income determination:
i. Step Disregard

ii. Dependent Allocation

iii. Child support/Alimony deductions

iv. Child or Dependent Care

F. INCOME ELIGIBILITY TESTS:

(1) This test is used for determining eligibility for applications.
a) When the assistance group's initial income determination, E (5)(a) above, exceeds the Standard of Need there is no eligibility for TANF/PaS.

b) When the assistance group's initial income determination, E (5)(a) above, is less than or equal to the Standard of Need, proceed to the calculation of the payment.

(2) This test is used for determining ongoing eligibility.
a) When the assistance group's initial income determination, E (5)(a) above, and applicable second income determination, E (5)(b) above, both exceed the Standard of Need there is no eligibility for TANF/PaS.

b) When the assistance group's initial income determination, E (5)(a) above, or applicable second income determination, E (5)(b) above, is less than or equal to the Standard of Need, proceed to the calculation of the payment.

G. CALCULATION OF PAYMENT:

(1) Calculate the Basic TANF Grant: Subtract the initial income determination, E (5)(a) above, from the Standard of Need (SON) using the appropriate chart in the Appendix. The benefit is the difference between the two figures up to the payment maximum (see appendix).

(2) If eligible for a Step Disregard, B (3)(c, e and f) above, Calculate the alternative Basic TANF Grant: Subtract the second income determination, E (5)(b) above, from the Standard of Need (SON) using the appropriate chart in the Appendix. The benefit is the difference between the two figures up to the payment maximum (see appendix).

(3) Use the correct Basic TANF Grant amount from 1 or 2 above per the stipulations for the application of the Step Disregard, B (3)(c, e and f) above.

(4) Special Need Housing Allowance (SNHA):
a) TANF assistance groups that incur housing costs that equal or exceed 50% of their countable income may be eligible for a SNHA payment of up to $300 per month. A separate application for SNHA is not required. The TANF or PaS application or redetermination is considered a request for SNHA. A person can receive an SNHA even if not receiving a TANF basic grant. Assignment of child support and ASPIRE participation is required in this circumstance. Child only assistance units may be eligible for the SNHA.

b) Countable Housing Expenses: The total expenses that the TANF or PaS assistance unit is responsible for even when they have been unable to pay that amount. These expenses must be verified.
i. Rent, lot rent, mortgage payment, property taxes and homeowner's insurance.

ii. Any housing costs paid by General Assistance are considered the responsibility of the assistance unit.

iii. Subsidized housing situations: The portion of rent used in the SNHA calculation is the portion allocated to the individual and does not include the portion paid by the housing entity.

iv. Shared housing costs: When the TANF recipient resides in a home with others who are not included in the filing unit (see Chapter II) the responsibility for housing costs is determined by who is responsible for the tenancy at will agreement, lease, or mortgage.
a. Count all of the housing costs if the individual responsible for the housing costs is in the filing unit. Any contributions to housing costs by individuals outside of the filing unit will be treated as unearned income to the individual;

b. Count a prorated share of the housing costs if:
1. the individual responsible for the housing costs is a caretaker relative receiving a child only payment; or

2. The individual responsible for the housing costs is a parent or child excluded from the assistance unit because of receipt of SSI or State Supplement.

c. Count none of the housing costs if the individual responsible for the housing costs, is not in the filing unit. Any voluntary contributions to housing costs made by the TANF individual to the holder of the rental/mortgage agreement are not considered countable for the SNHA.

c) Payment Determination
i. Determine eligibility for the basic TANF or PaS grant as in (G)(1) above.

ii. When the assistance unit is eligible for TANF or PaS, administer the 50% Test:
a. Add the basic TANF or PaS grant amount plus child support (minus $50 pass-through), plus countable income.

b. Determine total shelter costs

c. Divide total shelter costs (b) by the total of the basic grant plus child support plus countable income (a).

d. When the amount obtained in (c) is equal to or greater than 50% subtract the TANF or PaS countable income from the Special Need Full Standard of Need. The grant amount is the deficit up to the maximum Special Need payment for the size of the assistance group.

(5) If the result is less than $1 before application of any recoupment or proration, no benefit is issued.

(6) Round the benefit down to the next whole dollar.

(7) The TANF assistance group will receive the highest level of TANF benefits they are eligible to receive as defined in Section G.

H. TOTAL BENEFITS PACKAGE: A TANF recipient with child care needs has the option of:

(1) Receiving their TANF payment plus the child care assistance, up to the maximum market rate as determined by OCFS, as a "total" benefit" or

(2) Receiving their TANF payment and having the child care assistance paid directly to the child care provider. Unless specified by the recipient, the child care payment would be paid to the child care provider.

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