(a) There shall be paid, to each social services district which provides day services in accordance with department regulations, the amount of Federal funds, if any, properly received or to be received on account of such expenditures and, subject to the availability of State funds, 50 per centum of allowable expenditures for day services and its administration after first deducting therefrom any Federal funds properly received or to be received on account thereof, and the amount of any fees paid to the local social services official for day services.

(b) Charges to local social services districts for day services may include expenditures for compensation of employees in connection with the furnishing of day services, including but not limited to costs incurred for pensions, Federal old age and survivors insurance and health insurance for such employees, training programs for personnel, operation, maintenance and service costs, and such other expenditures as equipment costs, depreciation, and charges and rental values. It shall not include expenditures for capital costs.