(a)      The funding required in the State budget for local health services, exclusive of special fund and federal appropriations, shall be at least the amount set forth in subsection (b) of this section.

      (b)      The funding shall be:

            (1)      $41.0 million for fiscal year 1997; and

            (2)      For fiscal year 1998 and each subsequent fiscal year, the amount of funding for fiscal year 1997 adjusted for:

                  (i)      Inflation, as measured by the Consumer Price Index -- all urban consumers for the second preceding fiscal year, calculated by the U.S. Department of Commerce; and

                  (ii)      Population growth, as measured by the growth in the total population of the State of Maryland for the second preceding fiscal year, according to the most recent statistics available through the Department of Health and Mental Hygiene.

      (c)      (1)      For fiscal year 1997, no subdivision may receive less State funding for local health services under this section than that subdivision received in fiscal year 1996.

            (2)      For fiscal year 1998 and each subsequent fiscal year, no subdivision may receive less State funding for local health services under this section than that subdivision received in fiscal year 1997.

            (3)      The Secretary shall, in consultation with local health department directors, adopt regulations to guide the distribution of the funding required under this section. The regulations shall give consideration to appropriate measures of community health need, local funding effort, and other relevant factors.