A. Area agencies on aging are encouraged to continue seeking funds from a variety of sources which include cost-sharing in programs where not prohibited by funding sources; private sector voluntary contributions from older persons receiving services; families of individuals receiving services; and churches, service groups and other organizations. There is hereby set aside from general fund appropriations to the Department for the Aging an amount not to exceed $250,000 the first year and $250,000 the second year to implement, in cooperation with area agencies on aging, a pilot project to charge fees for services provided to older Virginians by area agencies on aging. Such appropriations shall not be included in the appropriations used to match Older Americans Act funding. Revenue generated as a result of these pilot projects shall be retained by the participating area agencies for use in meeting critical care needs of older Virginians. These revenues shall supplement, not supplant, general funds.

B. It is the intent of the General Assembly that all area agencies on aging shall use any new general fund revenue, with the exception of funding provided for the Long-term Care Ombudsman program, to implement sliding fees for services. Revenue from fees shall be retained by the area agencies on aging for use in meeting critical care needs of older Virginians. These revenues shall supplement, not supplant, general fund resources.

C. It is the intent of the General Assembly that Older Americans Act funds and general fund monies be targeted to services which can assist the elderly to function independently for as long as possible.

D. At the request of the Commissioner of the Department for the Aging, the Director of Planning and Budget may transfer state general fund appropriations for services provided by area agencies on aging between service categories. The amounts to be transferred between categories shall not exceed 15 percent of the total state general fund appropriations allocated for each category. Under no circumstances shall any funds be transferred from direct services to administration. State general fund appropriations shall be available to the area agencies on aging beginning July 1 of each year of the biennium, in compliance with the Department's General Fund Cash Management Policy.

E. The Governor is hereby authorized to spend a sum not to exceed $1,000,000 from the unappropriated balance in this act for long-term care and housing facilities for aging and mentally retarded persons, subject to matching funds of at least an equal amount from private sources and a land donation from private sources or Prince William County, Manassas, Manassas Park, or any other locality.