California Code, Government Code - GOV § 14083

Any agreement made pursuant to Section 14081 shall provide that the department shall be fully reimbursed by the governing body for all costs incurred by the department in performing services pursuant to the agreement.  The amount of the reimbursement shall be negotiated and agreed to between the governing body and the department in advance of the department performing the services.  However, whenever funds are made available to the department with an authorization to expend the funds for the department's performance of all or part of the agreed-upon services, the services so financed shall be performed by the department without reimbursement.  Any state funds so used shall be considered as part of the financing needed by the governing body from state and local revenue sources to meet its matching requirements for federal funding.