[4] Suppose transportation spending for the State of Missouri currently is $30 million allocated from the general fund. Suppose a $5 million categorical block grant is issued to Missouri for transportation, we would expect total transportation spending in Missouri to:

(a) increase to $35 million because categorical grants must be used for the specified purpose.

(b) increase to something less than $35 million because categorical grant funds can be used for any purpose. (c) increase to something less than $35 million because Missouri would be expected to allocate the $5 million grant to transportation but decrease general fund spending on transportation.