Section 59-A. Disposition of proceeds

The proceeds from a sale or grant of
  such  lands shall be applied first to repay any expenditures made by the
  office of general services from moneys appropriated to  said  office  in
  the  first  instance for the administration, management, utilization and
  disposal of real property of the  state  and  any  rights  or  interests
  therein  and any balance of such moneys remaining after repayment of the
  first instance  expenditures  shall  be  applied  to  the  cost  of  the
  improvement  which  renders  such  lands  no  longer  necessary, and the
  expenses incurred by the attorney general for searches  and  examination
  of  the  title  to  such  lands  shall  be deemed an item of the cost of
  improvement.  Any surplus from the sale of  abandoned  lands  above  the
  cost  of the entire improvement shall be applied to the sinking fund for
  the payment of the improvement bonds.