Expenditures from the State Public Transportation Fund may be made, under such conditions as the department may provide, for streets, driveways, and parking areas located upon the property of and serving:
(1) Public schools;
(2) Colleges of the university system;
(3) State agencies and governments of political subdivisions; and (4) Hospitals constructed with the assistance of financial grants
from the federal government, authorized by Title 42, Chapter 6A, Subchapter IV, United States Code, as amended.