State government: grants: administrative costs.

Existing law regulates the appropriation of state funds and imposes various requirements on the Controller with respect to the transfer of state funds. Existing law also sets various maximum allowable administrative costs for particular grant programs. This bill would require any state grants to a local government to include a maximum allocation of funds that may be expended for administrative costs, as defined, and would prohibit a local government, as defined, from expending more than 5% of grant funds for administrative costs, except as provided. The bill would specify that it is not intended to affect federal funding.