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furnished under an entity's approved plan. (b) In a district that has not been designated by the department as a poverty area, the department may fund not more than 75 percent of the eligible costs of the community mental health services to be furnished under an entity's approved plan. (c) Notwithstanding (a) and (b) of this section, if the department determines that sufficient funds from other sources are unavailable, then the department shall fund the percent of the eligible costs that is necessary in order to ensure that services for chronically mentally ill adults and severely mentally ill children, and other community mental health services to be furnished under an entity's approved plan are made available by the entity. Funding under this subsection is subject to the availability of legislative appropriations for the purpose. (d) Income earned by an entity through a community mental health project funded under AS 47.30.520 — 47.30.620 shall be used to augment or enhance the entity's mental health services. (e) In (a) and (b) of this section, “poverty area” means a census district in which at least 15 percent of the population, based upon the most recent census data, falls under 125 percent of the United States Department of Health and Human Services' Poverty Income Guidelines for Alaska, as reported in the Federal Register. Sec. 47.30.560. Contracts and expenditures. The contracts for services provided for in AS 47.30.520 — 47.30.620 shall be reviewed, revised if necessary, and approved at the expiration of each contract year. A contract shall be approved if the department finds that the community entity has complied with its plan, AS 47.30.520 — 47.30.620, and any applicable regulations adopted by the department. Expenditures for the purchase of services shall be made in accordance with the approved contract, budgets, and program projections. Sec. 47.30.570. Regulations; eligible services and costs. The department shall adopt regulations specifying the types of services and program costs eligible for state participation. These regulations must include (1) a provision excluding capital expenditures as eligible costs; and (2) a requirement that the community entity contractor or applicant agrees as a condition of contract approval that it will not supplant existing local fund support of community mental health services with funds received under AS 47.30.520 — 47.30.620 and that it will continue local funding support of community mental health services, in any year in which it contracts with the department, at a level that is at least equal to the local funding support in the previous year. Sec. 47.30.580. Comprehensive services. Plans and regulations adopted under AS 47.30.520 — 47.30.620 must allow local programs sufficient administrative and program flexibility so that local community mental health programs may be joined with other programs such as intellectual and developmental disability programs, drug abuse programs, alcoholism programs, and comprehensive mental health services programs.