§ 300. Declaration of policy. In order to assure effective discharge
of state responsibility with respect to the provision of adequate mass
transportation services to the inhabitants of the State, the department
may enter into an agreement with any municipal corporation to pay on
behalf of the State a share of the project cost of any municipal project
undertaken in accordance with the provisions of any federal grant or
project approval received from the Federal Urban Mass Transportation
Administration or the Federal Highway Administration.

The state share of a municipal project undertaken with federal
assistance from the Federal Urban Mass Transportation Administration or
the Federal Highway Administration may be fifteen percent of the project
cost.

In the event a municipal propect is undertaken with federal assistance
as authorized by the Federal Aid Highway Act of l973, and the federal
assistance provided is less than eighty percent of the project cost, the
state share may be increased by an amount equivalent to the difference
between the federal assistance received and eighty percent of the
project cost provided, however, that the maximum state share of any
municipal project shall not exceed twenty-five percent of the project
cost.