The Department of Human Services shall:
(1) Adopt by rule a methodology for determining biennial budget levels for type B area agencies for planning and administering programs for elderly persons and persons with disabilities that:
(a) Includes both direct and indirect costs; and
(b) Results in a budget level for each type B area agency that is not less than 95 percent of the amount that would otherwise be budgeted for a local department office serving elderly persons and persons with disabilities;
(2) Determine biennial budget levels for planning and administering programs for elderly persons and persons with disabilities for type B area agencies using the methodology adopted under subsection (1) of this section; and
(3) Submit an agency request budget based on budget levels determined under this section to the Oregon Department of Administrative Services in accordance with ORS 291.201 to 291.222.