(1) The county legislative bodies are empowered to appropriate such sums of money as may be necessary or expedient to be used in cooperating with the department of health in carrying on health demonstration work in the counties.
(2) The state treasurer is authorized and directed to receive and disburse money provided by any agency for the purpose of enabling the department to engage in health demonstration work. When such money is received by the state treasurer, it shall be placed to the credit of the department, and shall be disbursed by the state treasurer as are other funds provided for the department.