(a) Funding limit.--Total grants to municipalities which will not be entitlement entities in 1985 and thereafter according to sections 4, 5, 7 and 8¹ in each county shall be equal to the amount that county would have received to make grants to such municipalities had the entitlement program been in place for 1984, plus or minus 15% of the amount each county would receive under the entitlement program.

(b) Repayment of excess.--If total grants under this section are in excess of the sum of the grants counties would have received had the entitlement program been in place, such excess shall be repaid, in thirds, in the form of a reduction in the administrative and discretionary pool provided in section 4 during the following three years.