3600 Budgeting Overview

Georgia State Seal

Georgia Division of Family and Children Services
SNAP Policy Manual

Policy Title:

Budgeting Overview

Effective Date:

April 2021

Chapter:

3600

Policy Number:

3600

Previous Policy Number(s):

MT-58

Updated or Reviewed in MT:

MT-64

Requirements

All Assistance Units (AUs) must have their income considered in determining financial eligibility through a budgeting process.

Basic Considerations

The budgeting process includes the following:

  • the prospective budgeting method, used to determine the AU’s monthly income and expenses

  • the allowable deductions based on certain monthly expenses

  • the budgeting procedure used to calculate eligibility and benefit level using monthly income and expenses.

Prospective Budgeting

Prospective budgeting uses a best estimate of income and expenses based on a representative amount to determine the AU’s eligibility and benefit amount. This income and expense are either estimated using a conversion factor, or actual depending on the case situation.

Deductions

Certain deductions are allowed when determining the AU’s monthly benefit.

The FS program allows deductions to both earned and unearned income as follows:

  • 20% of earned income deduction

  • standard deduction

  • excess medical expense deduction

  • dependent care expense deduction

  • child support deduction

  • excess shelter deduction

  • homeless shelter deduction

Income Test

To be eligible, the AU’s income must be applied to the following tests:

  • Gross Income Ceiling (GIC) - the gross countable income of the AU must be less than or equal to the GIC for the AU size.

  • Net Income Limit - the net income of the AU after all deductions must be less than or equal to the net income limit for the AU size.

If the AU is eligible to receive FS, the FS allotment is based on the AU’s net income and the AU size.

Documentation

Document the following for all budgets:

  • the amounts of all gross income and expenses used in the budget, including the dates income is received and expenses are incurred and the source of verification.

  • the gross amounts used to calculate the representative income/expenses.

  • calculation of representative amounts.

  • the reason(s) non-representative amount(s) are not used in calculations.