Amount and type of assistance.

(a) The amount of assistance for a needy person shall be determined by the department with regard to the resources and needs of the person and the conditions existing in each case. Where possible, assistance shall be sufficient to provide the applicant with reasonable subsistence according to standards of assistance established by the department. However, the amount of assistance for subsistence needs may not exceed $120 a person a calendar month. (b) The department may enter into competitively awarded group service agreements with providers, and may require needy persons under AS 47.25.120 — 47.25.300 to obtain services from these designated providers.