California Department of Social Services - State Hearings Division
Notes from the Training Bureau - April 30, 1998

Item 98-04-01A
CDSS ACL 98-01 -- January 2, 1998 (Synopsis): Impact of Welfare Reform on the Aid to Families with Dependant Children (AFDC) Foster Care Program

Effective July 1, 1997, eligibility for federal and state foster care benefits under the AFDC Foster Care program must be determined using the AFDC eligibility standards in effect on July 16, 1996. No AFDC waivers in effect on July 16, 1996, may be applied in determining foster care eligibility for either foster care or Adoption Assistance Program benefits.

Many foster care eligibility requirements were not based on the AFDC program and were not affected by welfare reform. These include: redetermination of eligibility requirements, service requirements, linkage requirements except for AFDC-U eligibility, authority for placement requirements and others. Certain eligibility requirements after welfare reform are identical to the requirements in effect on July 16, 1996, such as age, Social Security number and residence requirements. However, other eligibility requirements such as property limits, the 100 hour work rule for AFDC-U eligibility and the $30 + 1/3 income disregard changed prior to welfare reform due to federal waivers.

Counties must use rules in effect on July 16, 1996, which were in effect prior to these waivers being implemented. Thus, counties must determine foster care eligibility based on a $1000 property limit, (not $2000 for an AFDC recipient), the 100 hour work rule when deprivation is based on unemployment, and must still apply the four month time limit on the $30 + 1/3 deduction when making initial AFDC linkage determinations. Additionally, in determining foster care eligibility, the Minimum Basic Standard of Adequate Care (MBSAC) amounts in effect on July 16, 1996, must be used to establish eligibility for foster care purposes.

Because the foster care program continues to be linked to AFDC rules in effect on July 16, 1996, counties may not use the new CalWORKs rules to determine eligibility for AFDC-Foster Care benefits.