State of Wisconsin
Department of Children and Families
Asset Restrictions for Wisconsin Works and Emergency Assistance
Analysis Prepared by the Department of Children and Families
Explanation of Agency Authority
The department administers the Wisconsin Works program under ss. 49.141 to 49.161, Stats., and the Emergency Assistance program under s. 49.138, Stats. Section 49.138 (1d) (b), Stats., provides that “needy person” has the meaning specified by the department by rule. Section 49.145 (3) (a), Stats., provides that an individual is eligible for a Wisconsin Works employment position or job access loan only if the individual is a member of a Wisconsin Works group whose assets do not exceed $2,500 in combined equity value. Except as provided under s. 49.145 (3) (c), Stats., in determining the combined equity value of assets, the Wisconsin Works agency shall exclude the equity value of vehicles up to a total equity value of $10,000, and one home, valued at no more than 200 percent of the statewide median value for homes, that serves as the homestead for the Wisconsin Works group. In calculating the value of the homestead, the Wisconsin Works agency shall exclude the value of agricultural land owned by the Wisconsin Works group. Section 49.145 (3) (c), Stats., provides that the department may promulgate a rule that establishes a hardship exemption to the asset restrictions under s. 49.145 (3) (a), Stats. If an individual qualifies for a hardship exemption under the department’s rule, the Wisconsin Works agency shall exclude the equity value of vehicles up to a total equity value of $10,000, and of one home, valued at any amount, that serves as the homestead for the Wisconsin Works group in determining whether the Wisconsin Works group’s combined equity value of assets exceeds $2,500. Section 227.11 (2) (a), Stats., expressly confers rule-making authority on each agency to promulgate rules interpreting the provisions of any statute enforced or administered by the agency if the agency considers it necessary to effectuate the purpose of the statute. Summary of the Rule
The proposed rule creates hardship exemptions to the asset restrictions for Wisconsin Works financial eligibility that limit the exclusion of the value of the homestead of a Wisconsin Works group to a home that is valued at no more than 200 percent of the statewide median value for homes. The rule provides that a Wisconsin Works agency shall exclude one home, valued at any amount, that serves as the homestead for the Wisconsin Works group if W-2 agency determines that the individual qualifies for a hardship exemption based on any of the following:
— No member of the Wisconsin Works group has the legal right to sell the home, including for reasons such as the home is subject to pending litigation and the home is jointly owned with a person who is not in the Wisconsin Works group and who refuses to consent to the individual in the Wisconsin Works group selling their share.
— The individual had a recent sudden loss of income due to death, divorce, separation, or non-payment of support.
— The Wisconsin Works group includes an incapacitated adult or a disabled child.
— The individual is or has been a victim of domestic abuse or is at risk of further domestic abuse, the home is jointly owned with the abuser, and the abuser is not a member of the Wisconsin Works group. The W-2 agency shall administer the domestic abuse screening tool to determine the individual’s eligibility for this exemption if the individual is otherwise financially eligible.
Section 49.145 (3) (a), Stats., excludes agricultural land from the calculation of the value of the home for the purpose of the limit on the homestead exemption. The proposed rule also defines “agricultural land” to include buildings and improvements that are devoted primarily to agricultural use and the land necessary for their location and convenience. In addition, the financial eligibility section of ch. DCF 101, Wisconsin Works, is renumbered and rewritten for clarity. Cross-references to the renumbered provision are updated throughout the chapter.
The asset section of ch. DCF 120, Emergency Assistance, is rewritten without changing the substance. The current asset rule includes a cross-reference to the Wisconsin Works rule on asset restrictions. The proposed rule specifies a $2,500 asset limit, excluding $10,000 in equity in vehicles and the value of a home that serves as the homestead for the Emergency Assistance group. Summary of Factual Data and Analytical Methodologies
The proposed rule creates hardship exemptions to the asset limit in s. 49.145 (3) (a), Stats. Summary of Related Federal Law
Not applicable
Comparison to Adjacent States
Illinois
The Illinois Temporary Assistance Program for Needy Families does not have an asset limit.
Minnesota
The Minnesota Family Investment Program has a personal property asset limit of $10,000, excluding one vehicle per individual in the assistance unit who is age 16 or older. All real property is excluded from the asset limit. Participants in the child care assistance program are exempt from the asset limit.
Iowa
The Iowa Family Investment Program has a $2,000 asset limit for applicants and a $5,000 asset limit for participants. A homestead is excluded from the asset limit regardless of its value.
Michigan
The Michigan Family Independence Program has an asset limit of $15,000 for liquid assets and $200,000 for real property. Property is excluded from the asset limit calculation if no member of the assistance group has the legal right to use or dispose of it. If accessing an asset would put an individual who experienced domestic violence in danger, the asset may be excluded for a maximum of 3 months.
Effect on Small Businesses
The proposed rule does not affect small businesses as defined in s. 227.114 (1), Stats. Analysis Used to Determine Effect on Small Businesses
The impact of the proposed rule is limited to agencies administering the Wisconsin works program and families and individuals participating in the Wisconsin works program. No current Wisconsin works agency is a small business as defined s. 227.114 (1), Stats.
