(b) Expenditures by a social services district for data entry operators determined necessary by the department during the period of conversion to full operation of the welfare management system for such district shall be subject to reimbursement by the state in accordance with section one hundred fifty-three of this chapter to the extent of one hundred percentum of such expenditures after first deducting therefrom any federal funds properly received or to be received on account of such expenditures.

(c) Expenditures by a social services district other than those set forth in this section shall be subject to state reimbursement as administrative costs in accordance with section one hundred fifty-three of this chapter to the extent of fifty percentum thereof, after first deducting therefrom any federal funds properly received or to be received on account of such expenditures.

(d) The department is hereby authorized to enter into written agreements, subject to the approval of the director of the budget, with not more than three social services districts by which such districts agree to undertake additional administrative functions relating to design, development and testing of the welfare management system, subject to one hundred percent state reimbursement for administrative costs attributable to such functions, after first deducting therefrom any federal funds properly received or to be received on account of such expenditures. 8. The department may enter into the case file of each applicant for or recipient of benefits under the programs of food stamps, aid to dependent children, home relief, veteran assistance, emergency assistance to adults, or medical assistance for whom a case file has been established on the welfare management system information it receives from the appropriate governmental agency concerning a client who has applied for or has been determined to be eligible for workers' compensation benefits, unemployment insurance benefits, and benefits being paid pursuant to titles two and sixteen of the federal social security act (including supplemental state payments). The department may rebudget any case for which it makes an entry where the information received indicates that rebudgeting is appropriate. The department shall immediately notify the appropriate social services district that an applicant or recipient's case has been rebudgeted or of any other direct entry of information into a case file. A social services district shall not be held responsible for any costs incurred as a result of data erroneously entered by the department into the welfare management system.