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Child Care Assistance Program (CCAP) Policy Manual

Child Care Assistance Program (CCAP) Policy Manual


6.15.3 Annualizing MFIP Income

ISSUE DATE: 10/2025

The cash portion of the Minnesota Family Investment Program (MFIP) grant and the MFIP Housing Assistance Grant carry over from MAXIS and are included in the MEC2 calculation of the annualization of unearned income for the family.

Standard Method

MEC² uses the actual MFIP grant from the beginning of the CCAP income annualization period through the current month + one month + the projected MFIP grant amount for the remaining months.

Example

Household of three applies for MFIP and CCAP on Feb 18, 2025. Job ended in Feb with last check in March. No income after March. MFIP starts 2/18/25.

  • · MFIP cash grant for Feb is $50 (prorated); housing grant $114 = $164
  • · MFIP cash grant for March is $302; housing grant $114 = $416.
  • · MFIP cash grant for April will be $756; housing grant $114= $870

    • Scenario 1:  CCAP processed in Feb with eligibility also starting in Feb.

  • · MEC2 annualizes MFIP income of $9280 based on $164 for current month + $416 for next month + ($870 x 10) for remaining months.

    • Scenario 2: CCAP processed in March with eligibility going back to February.

  • · MEC2 annualizes MFIP income of $9280 based on $164 for beginning month of annualization period + $416 for current month + $870 for next month + ($870 x 9) for remaining months

    • Scenario 3: CCAP processed in March with eligibility starting in March.

  • · MEC2 annualize MFIP income of $9986 based on $416 for current month + $870 for next month + ($870 x 10) for remaining months. 

    • The standard method used by MEC² annualizes the full MFIP grant for 12 months even if the MFIP grant would be reduced due to earned income when a parent starts employment.

    Alternative Method

    An alternative method may be used if it provides the most accurate assessment of income available. An alternative method may be used when:

  • · The worker determines that an alternative method is a more accurate assessment of income available.
  • · The family requests that the future estimated MFIP grant amount be considered in the CCAP income calculation and the future estimated grant amount is a more accurate assessment of income available.
  • · The CCAP income annualization with the current MFIP grant amount annualized results in the family being over-income and using the future estimated grant amount is a more accurate assessment of income available.

    • Consult with the MFIP worker to determine the estimated future MFIP grant. When consulting with the MFIP worker, ask when the family’s next review is and what their estimated MFIP grant is expected to be at that time, based on the information currently known. Case note how the annualized MFIP amount was determined.

    Example of the alternative method of calculation

    On 1/27/25, a family of three applies for MFIP and CCAP. They receive subsidized housing. Their only income has ended 1/24/25.

    MFIP approved on 2/10/25. Mom verified actual income of $1600 in Jan and last check of $800 in Feb.

  • · MFIP cash grant was $20 prorated for Jan, $527 for Feb and $756 March forward. The family is ineligible for the $114 housing grant.

    • On 2/25/25, mom gained employment and verified monthly earnings of $2000. MFIP will not decrease due to the increased income until its six-month review in July. Mom’s child care eligibility begins 2/25/25.

    On 3/3/25, agency processed the CCAP application using the standard method of calculation.

  • · Annualized CCAP income: $32,843
  • · MEC2 annualized MFIP income based on $527 Feb (beginning month of annualization period) + $756 March (current month) + $756 April (next month) + $6804 May-Jan (prospective x remaining months: $756x9) = $8843.
  • · MEC2 annualized employment income based on $2000x12= $24000.
  • · Based on a household size of three and the annualized income, family’s copayment is $34/biweekly.

    • Family request that the future estimated MFIP grant amount be considered in their CCAP income calculation.

    CCAP worker calculates annualized MFIP grant offline.

  • · The current MFIP grant is expected until the family’s six-month MFIP review, on 7/1/25.
  • · CCAP worker uses current MFIP grant of $756 cash portion 4 months (March through June) = $3024+ $527 Cash for Feb=$3551.
  • · CCAP worker consults with MFIP worker and determines that estimated future MFIP cash grant is $0. CCAP worker uses estimated future MFIP grant of $0 for remaining seven months of annualization period (July through Jan).
  • · CCAP offline MFIP grant annualization is $3551.
  • · Based on the household size and annualized income of $27,551 ($3551 MFIP grant+ $24000 employment), the family’s copay would be $32/biweekly.
  • · Override MFIP grant amount on the Financial Results page in each biweekly period available and approve eligibility.

    • On 7/1/25, at the MFIP six-month review, the family’s MFIP grant decreased due to mom’s employment which remains $2000 month.

  • · MFIP cash grant is now $0. Upon Maxis worker approving MFIP eligibility, MEC2 will generate an alert of unapproved eligibility results.
  • · CCAP worker reviews eligibility results. The family’s annualized income is now $24,000 based on employment only.
  • · Based on the new annualized income, the family’s copay decreased to $2/biweekly. The CCAP worker approves eligibility and a new version of service authorization then case notes the actions taken.

    • Refer to the MEC² User Manual > System Limitations > Annualized Reduced MFIP Income for instructions on entering reduced MFIP income that has been annualized offline into MEC².

    Legal authority

    Minnesota Statutes 142E.10
    Minnesota Statutes 142E.01
    Minnesota Rules 3400.0170

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