All moneys transferred to the California Veterans Homes Fund, upon appropriation by the Legislature, shall be allocated as follows:

1. (a) To the Franchise Tax Board and the Controller for reimbursement of all costs incurred by the Franchise Tax Board and the Controller in connection with their duties under this article.
2. (b) To the Department of Veterans Affairs for allocation to the administrators of veterans homes. Moneys allocated pursuant to this subdivision shall be distributed proportionally to the Morale, Welfare, and Recreation Fund of each veterans home pursuant to Section 1047 of the Military and Veterans Code.
3. (c) Appropriations from the General Fund for the funding of those purposes described in subdivision (b) may not be reduced for the purpose of, or to have the effect of, requiring increased expenditures from the California Veterans Homes Fund for those described purposes.