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HOW AND WHEN TO USE PROSPECTIVE BUDGETING

ISSUE DATE: 03/2009

Prospective budgeting is estimating the amount of monthly income a client will have in the payment month. In prospective budgeting, the budget month and the payment month are the same.

For some programs, budgeting income to determine the benefit amount is a separate process from budgeting income to determine eligibility. See 0018 (Determining Net Income), 0019 (Gross Income Test), 0020 (Net Income Limits), 0022.03.01 (Prospective Budgeting - Program Provisions).

Suspensions may affect prospective budgeting. See 0022.03.03 (Ineligibility in a Prospective Month - Cash), 0022.18 (Suspensions).

Anticipating income may result in an underpayment or an overpayment. This may require a corrective payment or an overpayment recovery. See 0022.21 (Income Overpayment Relating to Budget Cycle).

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