Add Kentucky TANF (K-TAP) Program

[hua7450]

Summary

Implements Kentucky Transitional Assistance Program (K-TAP) - Kentucky's TANF program administered by the Department for Community Based Services (DCBS).

Closes #6908

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Kentucky K-TAP Income Rules

Regulatory Authority

• 921 KAR 2:016 (Standards of need and amount for KTAP)

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1. INCOME ELIGIBILITY TEST

Gross Income Test

• Limit: 185% of the Standard of Need
• Definition: Total gross earned + unearned income of all benefit group members

Source: 921 KAR 2:016 Section 1(11)

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2. INCOME DEDUCTIONS & DISREGARDS

A. Work Expense Standard Deduction

• Amount: $175 per month
• Application: Deducted from gross earned income

Source: 921 KAR 2:016 Section 5(3)(a)

B. Earned Income Disregard

• Amount: 50% of remaining earned income (after work expense)
• Note: Available for first 6 months of employment

Source: 921 KAR 2:016 Section 5(3)(e)

C. Dependent Care Disregard

Dependent Age	Maximum Disregard
Under age 2	$200/month
Age 2-12	$175/month
Age 13+	$0

Source: 921 KAR 2:016 Section 5(3)(b)

D. Child Support Disregard

• Amount: First $50 of child support payments excluded

Source: 921 KAR 2:016 Section 5(2)(v)

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3. INCOME STANDARDS BY FAMILY SIZE

Family Size	Standard of Need	Max Gross Income (185%)	Payment Maximum
1	$481	$890	$372
2	$552	$1,021	$450
3	$631	$1,167	$524
4	$710	$1,314	$656
5	$790	$1,462	$766
6	$869	$1,608	$864
7+	$948	$1,754	$964

Source: 921 KAR 2:016 Section 9(2)(a)

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4. RESOURCE LIMIT

• Limit: $10,000 in liquid assets

Source: 921 KAR 2:016 Section 3(2)

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5. BENEFIT CALCULATION

Formula:

Benefit = min(55% × (Standard of Need − Countable Income), Payment Maximum)

Where Countable Income =

Countable Earned Income + Countable Unearned Income

And Countable Earned Income =

(Gross Earned Income − $175 Work Expense − Dependent Care) × 50%

And Countable Unearned Income =

Gross Unearned Income − min(Child Support, $50)

Calculation Steps:

1. Subtract $175 work expense from gross earned income
2. Subtract dependent care disregard (up to $200 per child under 2, $175 per child age 2-12)
3. Apply 50% earned income disregard to remainder
4. Subtract up to $50 child support from unearned income
5. Sum countable earned + unearned = Countable Income
6. Calculate deficit: Standard of Need − Countable Income
7. Apply 55% ratable reduction to deficit
8. Benefit = lesser of (55% × deficit) or Payment Maximum

Special Rule: Zero Income

• Families with no countable income receive the Payment Maximum

Source: 921 KAR 2:016 Section 9(4)(a)

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Example (Family of 3, $600/month earned income)

Step	Calculation	Result
Gross income	$600	$600
Gross limit (185% × $631)		$1,167 → PASS
Work expense	$600 − $175	$425
50% disregard	$425 × 50%	$212.50
Countable income	$212.50 + $0 unearned	$212.50
Standard of need		$631
Deficit	$631 − $212.50	$418.50
55% of deficit	$418.50 × 55%	$230.18
Payment maximum		$524
Benefit	min($230.18, $524)	$230/month

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Implementation Notes

• Dependent care: Full-time/part-time distinction ($175/$150) simplified to $175
• 50% disregard: Applied to all cases; 6-month limitation not tracked
• Zero-income exception: Uses where() to give payment_maximum when countable_income == 0

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[codecov]

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (0270c25) to head (a079376).
⚠️ Report is 351 commits behind head on main.

Additional details and impacted files

@@            Coverage Diff            @@
##              main     #6909   +/-   ##
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  Coverage   100.00%   100.00%           
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  Files            4        10    +6     
  Lines           68       143   +75     
=========================================
+ Hits            68       143   +75     

Flag	Coverage Δ
unittests	100.00% <100.00%> (ø)

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[PavelMakarchuk]

PolicyEngine Implementation Review - Kentucky K-TAP (TANF)

Summary

Status: ✅ READY FOR MERGE - High-quality implementation with comprehensive test coverage.

All 52 tests pass. The implementation follows PolicyEngine patterns correctly and includes excellent documentation.

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✅ No Critical Issues

✅ No Should Address Issues

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💡 Suggestions (Minor Improvements)

1. Variable References Could Use Structured Format

Files: All variable files in policyengine_us/variables/gov/states/ky/dcbs/ktap/

Variables use simple string references:

reference = "https://apps.legislature.ky.gov/law/kar/titles/921/002/016/"

Consider using structured format to match parameters:

reference = [
    {
        "title": "921 KAR 2:016 Section 5(3)",
        "href": "https://apps.legislature.ky.gov/law/kar/titles/921/002/016/"
    }
]

2. Consider Adding Specific Section Citations

The PR body includes excellent section citations (e.g., "Section 5(3)(a)" for work expense). Consider adding these specific sections to the variable docstrings or labels for traceability.

3. Consider Multi-Earner Test Case

Integration tests cover single-earner households well. Consider adding a test with two earners to verify the work expense deduction ($175) applies per household, not per earner.

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✅ Positive Notes

1. Excellent Code Patterns:

   • Correct use of add() for aggregating income: add(spm_unit, period, ["tanf_gross_earned_income"])
   • Proper use of max_() to prevent negative values (lines 20, 22 in countable_earned_income.py)
   • Correct use of min_() for capping disregards
   • Proper use of where() for zero-income handling in main benefit calculation

2. Strong Parameter Structure:

   • All parameters use proper reference format with title and href
   • Good use of bracket parameters for dependent care age-based limits
   • Complete coverage of all 7 family sizes for standard of need and payment maximum

3. Comprehensive Test Coverage:

   • 52 tests covering all variables
   • Integration tests with detailed calculation comments
   • Tests cover edge cases: zero income, child support, dependent care, over-limit assets
   • Proper use of underscore separators (e.g., 7_200, 2_400)

4. Correct Implementation of Regulations:

   • 185% gross income limit ✓
   • $175 work expense deduction ✓
   • 50% earned income disregard ✓
   • Dependent care: $200 under 2, $175 ages 2-12, $0 age 13+ ✓
   • $50 child support disregard ✓
   • $10,000 resource limit ✓
   • 55% ratable reduction rate ✓
   • Zero-income families receive payment maximum per KRS 205.200(2) ✓

5. Good Documentation:

   • Excellent PR description with formula breakdowns
   • Clear comments in code citing specific regulation sections
   • Implementation notes for simplifications (e.g., full-time/part-time care)

6. Proper Entity and Period Handling:

   • All variables correctly use SPMUnit entity
   • Consistent definition_period = MONTH
   • Correct use of period.this_year for age in dependent care calculation

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File Summary

Category	Files	Status
Variables	10	✅ All patterns correct
Parameters	11	✅ All properly structured
Tests	10	✅ 52 tests, all passing
Changelog	1	✅ Properly formatted

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