Except as otherwise provided in this chapter, and subject to the constraint of funds actually appropriated by the legislature, the state shall pay all of the costs of a specialized residential service that are eligible for state financial support and approved by the department and that are not otherwise paid for by federal funds, state funds, or reimbursements from persons and insurers who are financially liable for the cost of services, and that meet all of the following conditions:

    (a) The service is established and administered under the authority of the board of the community mental health services program and in accordance with chapter 2.

    (b) The service did not exist as part of the community mental health services program before March 31, 1981.

    (c) The service is approved by the department and operated in conformance with departmental policies and guidelines governing specialized residential programs.