Budgeting is assigning income to a specific month and determining eligibility and benefit level from that income. For some programs determining the benefit level is a separate process from determining eligibility.

Retrospective budgeting is using income from a budget month to determine benefit level for the payment month. The budget month is the month 2 months before the payment month. See 0022.06 (How and When to Use Retrospective Budgeting). Do not always count income from the budget month for the payment month. See 0022.06.03 (When Not to Budget Income in Retro. Cases).

Prospective budgeting is determining income eligibility and benefit level using anticipated income and deductions for the payment month. See 0022.03 (How and When to Use Prospective Budgeting).

MFIP, GA, SNAP, UHFS, and HSP use prospective budgeting to determine eligibility and benefit level. UHFS, SNAP, and HSP recipients subject to six-month reporting or change reporting see 0022.03 (How and When to use Prospective Budgeting).

MSA uses prospective budgeting to determine the 1st 2 months’ eligibility and benefit level in most cases. After the 1st 2 months use prospective or retrospective budgeting, depending on the client’s circumstances. See 0022.09 (When to Switch Budget Cycles – CASH).


HSP is budgeted using the client’s actual income for the benefit month, unless the client is a Six-Month Reporter. See 0007.03.02 (Six-Month Reporting), 0024.03.03 (When Benefits Are Paid - SNAP/MSA/GA/HSP).

Calculate the benefit level using the income from the appropriate budget month. See 0022.12 (How to Calc. Benefit Level - MFIP /GA), 0022.12.01 (How to Calculate Benefit Level - SNAP/MSA/HSP). Some programs require prorating benefits. Proration can begin from the date of application, the date the client meets all eligibility requirements, or from the date the agency receives a late household report form or a late Combined Six-Month Report form. See 0022.12.03 (Proration), 0022.12.03.03 (Proration Table).
There are special provisions for budgeting self-employment income. See 0017.15.33 (Self-Employment Income), 0017.15.33.03 (Self-Employment, Convert Inc. To Monthly Amt).

For information on budgeting for MFIP pregnant women cases, also see 0008.06.12.09 (Converting a Pregnant Woman Case), 0013.03.03 (Pregnant Woman Basis – MFIP).