Just another case of state funding being used to support or resist local initiatives.    It's a serious and widely used tool, to bind the needs and contributions of local government to the larger state government that has more power (for funding, regulation, state objectives).  

And the next step up, the money distributed by the Federal Government to the individual states.    Also seen as strengthening the ties of states to the Union.   These are part of what is intended to be a mutually beneficial relationship.   

This is not a charity relationship.   The giver of the money is expecting a return.