Implement Ohio Works First (OWF) (TANF)

[hua7450]

Summary

Implements Ohio Works First (OWF), Ohio's TANF program, with income disregard formula verified against Ohio Revised Code.

Closes #6774

Status

• [x] Parameters created (5 files)
• [x] Variables implemented (6 files)
• [x] Tests written (65 test cases)
• [x] CI passing
• [x] Formulas verified against Ohio statutes
• [x] Ready for review

---

Key Changes

Implementation Summary

• ✅ 6 new variables for Ohio OWF benefit calculation
• ✅ 5 parameter files for payment standards and earned income disregard
• ✅ 65 comprehensive test cases across 6 test files
• ✅ Formulas verified against Ohio Revised Code § 5107.10
• ✅ All tests passing

Formula (Per ORC 5107.10 and OAC 5101:1-23-40)

Earned Income Disregard: "$250 + 50% of Remainder"

remainder = max(gross_earned - $250, 0)
percent_disregarded = remainder × 50%
countable_earned = remainder - percent_disregarded
                 = remainder × 50%

Unearned Income: No disregards (full amount countable)

Benefit Calculation:

benefit = MAX(payment_standard - countable_income, 0)

Two-Tier Eligibility:

• New applicants: Must pass BOTH (1) gross income < 50% FPL AND (2) countable < payment standard
• Enrolled recipients: Only need countable < payment standard

---

Files Added

Parameters (5 files)

policyengine_us/parameters/gov/states/oh/odjfs/owf/
├── income/deductions/earned_income_disregard/
│   ├── flat_amount.yaml                    # $250
│   └── percent_of_remainder.yaml           # 50%
├── initial_eligibility/
│   └── income_limit_percent.yaml           # 50% of FPL
└── payment_standard/
    ├── additional_person_increment.yaml    # $128
    └── amounts.yaml                        # Nov 2024 amounts (sizes 1-8)

Variables (6 files)

policyengine_us/variables/gov/states/oh/odjfs/owf/
├── eligibility/
│   ├── oh_owf_eligible.py                  # Overall eligibility
│   ├── oh_owf_income_eligible.py           # Two-tier test
│   └── oh_owf_initial_income_eligible.py   # 50% FPL test
├── income/
│   └── oh_owf_countable_income.py          # $250 + 50% disregard
├── oh_owf_payment_standard.py              # By family size
└── oh_owf.py                               # Main benefit

Tests (6 files, 65 test cases)

policyengine_us/tests/policy/baseline/gov/states/oh/odjfs/owf/
├── integration.yaml (5 tests)
├── oh_owf.yaml (15 tests)
├── oh_owf_countable_income.yaml (14 tests)
├── oh_owf_eligible.yaml (11 tests)
├── oh_owf_income_eligible.yaml (9 tests)
└── oh_owf_payment_standard.yaml (11 tests)

---

Example Calculations

Real-World Scenario: Family of 3 with Earned Income

Household: Single parent with 2 children, enrolled
Income: $800/month employment income

Payment Standard: $623/month

Earned Income Disregard:
  $800 - $250 = $550 (remainder)
  $550 × 50% = $275 (disregard half)
  Countable: $275/month

Benefit: $623 - $275 = $348/month
Total income: $800 + $348 = $1,148/month

Low Income Example: Under $250/month

Income: $200/month earned

$200 - $250 = -$50 (clipped to $0)
Countable: $0 (all income disregarded)
Benefit: $623 - $0 = $623/month (maximum)

Key Insight: All earned income under $250/month is fully disregarded!

---

Testing & Verification

Test Results

✅ All 65 tests passing across 6 test files
   - 5 integration tests
   - 60 unit tests
   - 0 failures

Coverage Highlights

• ✅ All family sizes (1-12+)
• ✅ Earned, unearned, and mixed income
• ✅ New applicants vs enrolled recipients
• ✅ Initial and ongoing eligibility tests
• ✅ Boundary cases (at $250, at payment standard, at FPL limit)
• ✅ Edge cases (zero income, very high income)

How to Run

# All tests
policyengine-core test policyengine_us/tests/policy/baseline/gov/states/oh/odjfs/owf/ -c policyengine_us

# Integration only
policyengine-core test policyengine_us/tests/policy/baseline/gov/states/oh/odjfs/owf/integration.yaml -c policyengine_us

---

Implementation Highlights

Key Features

• ✅ Payment standards for all family sizes (1-12+)
• ✅ Earned income disregard ($250 + 50% of remainder)
• ✅ Two-tier eligibility (stricter for new applicants)
• ✅ No resource/asset limits (unique to Ohio)
• ✅ Uses current year FPL (updates annually July 1st)
• ✅ Proper vectorization throughout

Design Decisions

1. Simpler Than PA TANF: Everyone gets the same earned income disregard

   • No conditional eligibility for disregard
   • No separate "Standard of Need" test

2. No Resource Test: Ohio doesn't count assets

   • Vehicles and homes excluded
   • More generous than most states

3. Current Year FPL: Uses tanf_fpg (current year)

   • Updates annually on July 1st per ORC 5107.10(D)(2)
   • NOT static 1997 values

4. Federal Rule Reuse: Uses federal TANF variables

   • is_demographic_tanf_eligible
   • is_citizen_or_legal_immigrant
   • tanf_gross_earned_income
   • tanf_gross_unearned_income

---

References

Official Sources

• Ohio Revised Code § 5107.10 - Eligibility and income tests
• OAC 5101:1-23-40 - Benefit calculation
• OAC 5101:1-23-20 - Income and eligibility
• Muskingum County JFS - Payment standards (Nov 2024)

---

Branch Information

Branch: oh-tanf-simple
Base: master
Status: ✅ All formulas verified against Ohio statutes, 65 tests passing

---

Implementation by: @hua7450
Issue: #6774
Ready for: Code review and testing feedback

[codecov[bot]]

Codecov Report

:x: Patch coverage is 98.21429% with 2 lines in your changes missing coverage. Please review. :white_check_mark: Project coverage is 98.21%. Comparing base (ba52386) to head (5de401c). :warning: Report is 42 commits behind head on master.

Files with missing lines	Patch %	Lines
...us/variables/gov/states/oh/odjfs/owf/oh_owf_fpg.py	90.47%	1 Missing and 1 partial :warning:

Additional details and impacted files

@@             Coverage Diff             @@
##            master    #6788      +/-   ##
===========================================
- Coverage   100.00%   98.21%   -1.79%     
===========================================
  Files            2        7       +5     
  Lines           26      112      +86     
  Branches         0        1       +1     
===========================================
+ Hits            26      110      +84     
- Misses           0        1       +1     
- Partials         0        1       +1     

Flag	Coverage Δ
unittests	98.21% <98.21%> (-1.79%)	:arrow_down:

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