(1) The State Treasurer shall serve as trustee of funds apportioned to the state from any appropriations made by the federal government, the state or any other agency for providing and equalizing public library service in Kentucky.
(2) The Finance and Administration Cabinet shall, on the requisition of the department, authorize the State Treasurer to make disbursement from such funds to such libraries, cities, towns and counties for library service as have been approved and authorized to participate in the benefit of these funds under the terms of the federal acts, and for the payment of salaries and other authorized expenses out of the fund provided by the federal government.