Virginia Law

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

B. A financial needs 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 department 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 department 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 that require a financial needs test are physical and mental restoration; training other than on-the-job training; maintenance; transportation; services to family members; telecommunications; recruitment and training services; post-employment services; occupational licenses and other goods and services.

3. The policies shall 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 shall be applied uniformly to all individuals within each geographic region; and the policies shall 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 from a financial needs test 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 family unit is every person listed on the client's most recent federal income tax return.

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

1. Annual taxable income (gross income).

2. Annual nontaxable income such as social security benefits, 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 for annual taxes, health insurance, and retirement savings by the applicable percentage indicated in the table below:

2. Income shall be excluded from consideration based upon family size using the federal poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 USC § 9902(2). The department shall use the federal poverty level for a family of four to determine the income exclusion for a family of one. The family income exclusion shall be increased by the amount established in the annual federal poverty guidelines for each additional dependent.

3. Excluded from income shall be estimated cost specifically related to the disabilities of family unit members 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 in this section. The positive balance (resources exceeding exclusions) shall be determined to be available for participation in the rehabilitation program.