The reason for this decision is that the FY 2003 General Relief appropriation is not sufficient to pay the full General Relief grants through June 2003.  State Law 208.154 and State Regulation 13 CSR 40-2.130 require the grant to be reduced when appropriated funds are not sufficient to pay the full grant.

State office will adjust the GR grants on all cases approved through January 16, 2003.  On January 17, 2003, a notice will be mailed to the recipients informing them of this action and their hearing rights.  (A copy of this notice is being sent to the county offices.)  If the recipient requests a hearing by January 27, 2003, the notice specifies the date and time their hearing will be held.  These hearings are scheduled for 8:00 A.M. on either January 28, 29, 30, or 31, 2003.  A notice will also be printed on their February check stub.  Copies of these notices are attached to this memo.
For cases approved after January 16, 2003, the system will not allow a grant larger than $9.00.  Cases approved for January 2003 and prior months may receive up to the $80.00 maximum cash grant per month as a retroactive payment and a maximum grant of $9.00 per month for February 2003 ongoing.  On approval letters include a statement that beginning February 2003 $9.00 is the maximum grant allowable by state law.  This statement could be added in Box 4. other.

On January 18, 2003, state office will adjust the cases notified on January 17, 2003, to reflect the new maximum grant for February 2003.

For any hearing requests received, fax the IM-87 to the hearing officer the same day.  Ensure you notate that the hearing is concerning the GR maximum grant reduction as well as the client's specific reason for requesting the hearing.

Food Stamp Cases

We will do a mass adjustment of Food Stamp cases with General Relief income in Legacy and FAMIS in mid-February.  Supplemental benefits will be issued for February if the food stamp allotment increases.  Legacy food stamp cases with General Relief income that are converted to FAMIS after the General Relief grant adjustment and prior to the food stamp adjustment may go into the controlled flow.  Adjust the General Relief grant to the correct benefit amount when completing the controlled flow.  More detailed information regarding the food stamp mass adjustment will be given at a later time.

• Review this memorandum with appropriate staff immediately.

• Use the new maximum GR cash grant of $9.00 for February 2003 and after.