(a) Reimbursement for child welfare services by the department to counties during a fiscal year pursuant to section 704.1¹ shall not exceed the funds appropriated.

(a.1) Reimbursement for child welfare services provided in a fiscal year shall be appropriated over two fiscal years.

(b) The allocation for each county pursuant to section 704.1(a) shall be calculated by multiplying the sum of the Social Security Act (Public Law 74-271, 42 U.S.C. § 301 et seq.) Title IV-B funds and State funds appropriated to reimburse counties pursuant to section 704.1(a) by a fraction, the numerator of which is the amount determined for that county's child welfare needs-based budget and the denominator is the aggregate child welfare needs-based budget.

(c) If the sum of the amounts appropriated for reimbursement under subsection (a) during the fiscal year is not at least equivalent to the aggregate child welfare needs-based budget for that fiscal year:

(c.1) The department shall reimburse counties with funds appropriated in the fiscal year in which the department is to make the reimbursement payment for child welfare services on the earliest date under section 704.1. The aggregate reimbursement for child welfare services provided during a fiscal year shall not exceed the amount specified as the aggregate child welfare needs-based budget allocation by the General Assembly as necessary to fund child welfare services in the General Appropriation Act for that fiscal year.

(d) For the purpose of this section, an appropriation shall be considered equivalent to the aggregate child welfare needs if it is equivalent to the result obtained by calculating the aggregate child welfare needs minus the county share of Youth Development Center costs and minus the Social Security Act Title IV-B funding, provided, however, an appropriation shall be deemed equivalent if it is equal to eighty-two percent of the result in 1991-1992, ninety percent of the result in 1992-1993 and ninety-five percent of the result in 1993-1994.

(e) The department shall, by regulation, define allowable costs for authorized child welfare services, provided that no regulation relating to allowable costs shall be adopted as an emergency regulation pursuant to section 6(b) of the act of June 25, 1982 (P.L. 633, No. 181),² known as the “Regulatory Review Act.”