Section 3 / Part 9
Effective Date: April 26, 2005
Economic Need
Rehabilitation Services (RS) will consider the economic need of eligible
individuals or individuals with an IPE who are receiving services during an extended
evaluation for purposes of determining the extent of their participation
in the costs of vocational rehabilitation (VR) services. The RS policy
is based on the individual’s financial need, including consideration
of disability-related expenses paid by the individual.
This policy will be applied uniformly to all individuals in similar circumstances.
Exception: Individuals determined eligible for Supplemental Security Income
(SSI) or Social Security Disability Income (SSDI) because of their disability are exempt from a determination
of economic need. Their family resources may not be considered.
For Kansas residents, the economic or financial needs test will apply to all services except:
Assessment for determining eligibility and priority for services, except
those non-assessment services that are provided during an extended evaluation
for an individual with a severe disability.
Assessment for determining vocational needs.
Vocational rehabilitation counseling, guidance, and referral services
provided by the RS counselor.
Customer support services.
IPE research.
IPE case coordination.
Purchasing support.
Personal/vocational adjustment training.
Work training services with placement.
Comprehensive job coaching.
Intensive employment support.
Supported employment.
On-the-job training.
Job placement services.
Services provided through a RS grant to a community rehabilitation program.
Services provided at the Rehabilitation Center for the Blind and Visually Impaired.
Any auxiliary aid or service (such as sign language interpreter services, foreign language interpreter services, reader services,
personal assistance services) that an individual requires in order to
participate in the VR program. (The distinguishing feature of these access
services is that participation in the VR program is not possible without
these services being made available.)
These exemptions do not apply for non-Kansas residents who are participating in Kansas services or programs on a fee basis.
Determination of economic need involves negotiation and counselor judgement.
The Economic Needs Summary is used to compute the amount of financial
assistance provided by RS and the amount of financial participation
expected of the client. RS must still seek and use comparable services
and benefits to pay for exempted services.
Independent status and consideration of parents’ income
For purposes of economic need, individuals are considered independent
if they meet one or more of the following criteria:
The individual’s own earnings constitute a majority of his or her
financial support.
The individual is 23 years old or older.
The individual is married.
The individual contributes financially to child support.
The individual is an orphan or ward of the court or SRS.
The individual has been discharged from U.S. military service.
The income of parents will not be considered when determining economic
need for individuals who are considered independent under these standards.
Parents’ income will be considered an available resource for individuals
who do not meet these standards.
Determination of available resources:
The wages of adult wage earners in the family unit will be included
in the calculation of available monthly resources. In the case of a
client who lives with the parents and is claimed as a dependent, both the
client’s and parents' earnings will be included as available resources.
Benefits received by adults in the family unit will be included in the calculation of available monthly resources. This includes:
- Retirement benefits.
- Social Security Survivor benefits.
- SSI or SSDI when it is received by an adult in the family other than the client.
If a child in the family is receiving SSI, these funds are not considered available resources for purposes of Economic Need. However, the child is counted when determining the number in the family in order to identify the cost of living standards.
For clients who are married and living with the spouse, the incomes
of both are available resources. For clients who are divorced or separated,
only the client’s income is an available resource.
In addition to monthly income, savings and other negotiable instruments
which may be readily converted into cash will be considered available
resources. This includes checking accounts, money on hand, trust funds,
savings, certificates of deposit, and other investments.
Weekly benefits from
workers compensation (Temporary Total Disability payments) are
also considered available resources.
Workers compensation or legal settlements designated for training are
an available resource.
Workers compensation or legal settlements are exempt when they compensate
for disability or injury, loss of future earnings or loss of work-related
functioning.
Legal settlements for back wages are an available resource.
IRAs, deferred compensation accumulations and other tax-deferred assets
specifically designed for retirement that existed prior to application
for VR services. Additional deposits made after application for VR services
are not exempt.
Funds deposited, matching funds received, and interest earned in Individual
Development Accounts are exempt.
The client may exempt up to $2,500 in cash assets and up to $500 in
cash assets for each member of the family unit.
Figuring income reduction
Income may be reduced by payments for disability related expenses (medical
supplies, medication, therapies, etc.), child support and alimony. Monthly
payment for health insurance may also count toward income reduction
unless they were previously deducted when determining net income. Child
care expenses may not be used for income reduction.
Effective dates
The purchase of a durable good is subject to economic need for at
least three months. Examples of durable goods include, but are not limited
to, home modifications, assistive technology devices and vehicles. Economic
need standards will be applied for each month of the Individualized
Plan for Employment (IPE). The Economic Need Summary may cover a maximum
of 12 months, after which time it must be redetermined. Economic need must also be redetermined if financial resources change.
Cost of living standards
For purposes of determining economic need, the following cost of living
standards will be applied.
1 person family, $890 per month for cost of living standard
2 person family, $1,200 per month for cost of living standard
3 person family, $1,510 per month for cost of living standard
4 person family, $1,820 per month for cost of living standard
5 person family, $2,130 per month for cost of living standard
For each additional family member, add $310 per person per month for
cost of living standard.
Number in family
The number in the family is based upon the number of exemptions on
the latest federal income tax return.
In the case of a client who is a parental dependent and age 22 or younger,
the number in the family will be based on the number of exemptions claimed
on the parents’ tax return.
An unmarried client who is age 23 or older with no dependents is considered
a family of one.
For clients who are single, separated or divorced, family size is based
upon the number of exemptions on the client’s latest tax returns.
For married clients filing separate income tax returns, family size
will be determined by the total number of exemptions claimed on both
returns.
Determination of dependency status and family size must be reviewed
each year. A change in dependency occurs when the client’s earnings
constitute a majority of financial support and the client would no longer
qualify as a dependent.
Verification
Counselors must request verification of information, such as income tax
returns or current pay stubs. Tax forms will be the only source for identifying
income of self-employed individuals.
Relationship between economic need and maintenance
It is not the intent of RS to supplement a client’s resources
up to the cost of living standard when the payment of maintenance is
involved, but rather to address the client’s needs and increased
expenses that are a result of the rehabilitation plan.
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