MEMORANDUM

DISCUSSION:

The manual is being revised to clarify adjusted gross income for HCB budgeting. Eligibility for HCB is based on adjusted gross income. When the adjusted gross monthly income of the HCB individual is at or below the HCB income maximum, the individual is eligible on the factor of income.

Adjusted gross earned income is income remaining after the following deductions:

• any applicable overhead expenses of producing income (from the FAMIS Income (FMXO) screen press F14=INCEXP to enter overhead expenses on the Income Expense (FMX1) screen), and
• $65 per month of earned income plus one-half of the remaining earned income in the month which is automatically calculated by FAMIS.

Adjusted gross non-earned income is the income remaining after:

• any applicable overhead expenses of producing income are deducted (from the FAMIS Income (FMXO) screen press F14=INCEXP to enter overhead expenses on the Income Expense (FMX1) screen.)

The total of adjusted gross earned income and adjusted gross unearned income is compared to the HCB income maximum. The $20 personal income exemption does not apply to HCB income determinations.

Enter all sources and the gross amount of earned and non-earned income in FAMIS from the Select Income (SELINC, FMX2) using F14=ADDINC. When determining adjusted gross monthly income, follow the policy outlined in the following sections of the MHABD manual:

• 0805.015.10 Income Exclusions
• 0805.015.15 Overhead Expense Of Producing Income
• 0805.015.20 Determination Of Gross Earned Income
• 0805.015.30 Non-Earned Income

NECESSARY ACTION:

• Review this memorandum with all appropriate staff.

AC/jo