(a) Funding for this expansion of the community based service system is limited to the amount appropriated on an annual basis to the Office of Mental Health for such purposes and to the amount awarded to the locality. Such funding may continue on an annual basis with the approval of the Office of Mental Health.

(b) Funding shall be a grant for 100 percent of the net deficit cost of a program or part of a program that has been approved by the Office of Mental Health to serve children with serious emotional disturbance in the community based service system. Each locality receiving a grant will be responsible for assuring that revenue available from other sources has been claimed and used to reduce the net deficit amount.

(c) Funding shall be solely awarded to the local governmental unit. Such funding may be contracted to other service providers or individuals by the local governmental unit with approval from the Office of Mental Health. The local governmental unit must demonstrate to OMH that the contractor has the capacity to provide effective services to children.

(d) Funding shall be for new and expanded services. Each local governmental unit receiving grant funds must submit a statement that the ECS funding will not be used to supplant existing local funding. The local contributions for expenditures in any local fiscal year for local or unified services provided to children with serious emotional disturbance in accordance with this Part, as applicable, must remain equal to or greater than the amount expended by such local governmental unit in the last complete fiscal year preceding the effective date of this Part.

(e) Calculation of such expenditures shall be based upon maintenance of the following:

(f) The local governmental unit shall be responsible for determining the current local contribution, the intent to maintain that level and the methodology for monitoring the local level of expenditure for the community based service system for children with serious emotional disturbance. The local governmental calculation and methodology must be approved by the Office of Mental Health prior to the grant award. Annual updates shall be required.

(g) The local governmental unit and any provider of service participating in the community based service system shall be responsible for participation in any evaluation of the services or audit of expenditures undertaken by this funding.