Section 160. Participation of individuals in the cost of services based on financial need

A. A financial need test is established because of the limited resources of the department.

B. A financial need test shall be utilized to determine the extent of participation by eligible individuals or individuals receiving services during an extended evaluation in the cost of vocational rehabilitation services.

1. The state unit shall maintain written policies covering the determination of financial need.

2. The state plan must specify the types of vocational rehabilitation services for which the unit has established a financial needs test. No financial needs test shall be applied and no financial participation shall be required as a condition for furnishing the following vocational rehabilitation services assessment for determining eligibility and priority for services, except those nonassessment services that are provided during an extended evaluation for an individual with a significant disability; assessment for determining vocational rehabilitation needs; counseling, guidance and referral services; interpreter and reader services; personal assistance services; placement services; on-the-job training; and unpaid work experience. Also excluded from financial participation shall be services necessary to assist in the diagnostic and evaluation process, such as transportation, maintenance, and interpreter service for the deaf. Services which require an economic need test are: physical and mental restoration; training other than on-the-job training (OJT); maintenance; transportation; services to family members; telecommunications; recruitment and training services; post-employment; occupational licenses and other goods and services.

3. The policies must be applied uniformly to all individuals in similar circumstances; the policies may require different levels of need for different geographic regions in the state, but must be applied uniformly to all individuals within each geographic region; and the policies must ensure that the level of an individual's participation in the cost of vocational rehabilitation services is reasonable based on the individual's financial need, including consideration of any disability-related expenses paid by the individual, and not so high as to effectively deny the individual a necessary service.

C. Groups exempt are:

1. Recipients of General Relief;

2. Recipients of Temporary Assistance for Needy Families (TANF) by the individual or family on which the individual is dependent; and

3. Individuals determined eligible for Social Security benefits under Titles II or XVI of the Social Security Act.

D. Income and resources of the family are to be used when the client is a part of the family unit. The client is a part of the parent or legal guardian family unit upon occurrence of either:

1. Dependency of support evidenced on the last federal income tax return of the parent or legal guardian regardless of residency; or

2. When temporarily absent from the home due to illness, school, vacation, or military leave.

E. The financial need test shall consider the following income:

1. Annual taxable income (gross income).

2. Annual nontaxable income such as social security, retirement benefits, workers' compensation, and veterans' benefits.

3. Total cash assets, including checking and savings accounts, certificates, stocks, and bonds.

F. The financial need test shall provide for the following allowances and exclusions:

1. The gross income shall be adjusted by the percentage indicated in the table below:

	Gross Income	Allowance
	Under $10,000	15%
	$10,000 to $14,999	20%
	$15,000 to $24,999	25%
	$25,000 to $34,999	30%
	Over $34,999	35%

2. Income shall be excluded from consideration based upon family size using the table below:

	Size of Family	Income Exclusion
	1	$10,608
	2	$13,143
	3	$15,678
	4	$18,213
	5	$20,748
	6	$23,283
	7	$25,818
	8	$28,353

For each additional dependent, add $2,535.

The table above is based upon the federal law income for a family of four. It shall be updated annually by the department.

3. Excluded from income shall be estimated client cost specifically related to the client's disability and not covered by comparable services and benefits.

4. Excluded from cash assets is $5,000.

5. Individual retirement accounts shall be excluded from income considerations.

G. Determination of the annual client financial contribution results from an examination of: (i) the number of persons in the family unit; (ii) annual taxable income minus allowances; (iii) annual nontaxable income; (iv) cash assets minus exclusions; and (v) exceptional exclusions based on client cost specifically related to client's disability.

The financial resources to be considered shall be tabulated using the method noted herein. The positive balance (resources exceeding exclusions) shall be determined to be available for participation in the rehabilitation program.

Historical Notes

Derived from VR595-01-1 § 16, eff. July 1, 1987; amended, Volume 11, Issue 01, eff. November 2, 1994; Volume 17, Issue 07, eff. January 17, 2001; Volume 19, Issue 14, eff. April 24, 2003.

Statutory Authority

§ 51.5-14 of the Code of Virginia.