On and after July 1, 1997:

(a) Except as provided in Kan. Stat. Ann. § 75-7040, and amendments thereto, each grant under Kan. Stat. Ann. §§ 75-7038 through 75-7053, and amendments thereto, shall be expended by the county receiving it for juvenile community correctional services as described in Kan. Stat. Ann. § 75-7038, and amendments thereto, in addition to the amount required to be expended by such county under this section. Each calendar year in which a county receives grant payments under Kan. Stat. Ann. § 75-7050, and amendments thereto, the county shall make expenditures for correctional services as described in Kan. Stat. Ann. § 75-7038, and amendments thereto, from any funds other than from grants under Kan. Stat. Ann. §§ 75-7038 through 75-7053, and amendments thereto, in an amount equal to or exceeding the amount of base year juvenile corrections expenditures as determined by the commissioner of juvenile justice.

(b) The commissioner of juvenile justice shall audit and determine the amount of the expenditures for juvenile correctional services as described in Kan. Stat. Ann. § 75-7038, and amendments thereto, of each county applying for a grant as provided in Kan. Stat. Ann. § 7053, and amendments thereto.

(c) In any case where a county receiving a grant does not make expenditures for juvenile correctional services from funds other than from grants under Kan. Stat. Ann. §§ 75-7038 through 75-7053, and amendments thereto, as required by this section, the grant to such county for the next ensuing calendar year shall be reduced by an amount equal to the amount by which such county failed to make such required amount of expenditures.

(d) The commissioner of juvenile justice may provide, by rules and regulations, procedures for the following, as determined by the commissioner to further the purposes of Kan. Stat. Ann. §§ 75-7038 through 75-7053, and amendments thereto:

(1) The transfer, to one or more other counties, of any portion of a county’s annual grant which is not included in such county’s program budget for the current program year; and

(2) the transfer, to one or more other counties, of any portion of a county’s annual grant which remains unused at the end of such county’s program year and is not included in such county’s program budget for the ensuing program year.

(e) Except as otherwise provided pursuant to subsection (d), if a county does not expend the full amount of the grant received for any one year under the provisions of Kan. Stat. Ann. §§ 75-7038 through 75-7053, and amendments thereto, the county shall retain the unexpended amount of the grant for expenditure for juvenile correctional services as described in Kan. Stat. Ann. § 75-7038, and amendments thereto, during any ensuing calendar year. The commissioner of juvenile justice shall reduce the grant for the ensuing calendar year by an amount equal to the amount of the previous year’s grant which was not expended and was retained by the county, unless the commissioner finds that the amount so retained is needed for and will be expended during the ensuing calendar year for expenditures under the applicable comprehensive plan.