The bill establishes a framework for a continuous state budget that remains in effect until amended, lapsed, or eliminated by the legislature. It stipulates that if the legislature does not take action on existing appropriations by July 1 of any year, those appropriations will automatically carry over into the new fiscal year. Additionally, it allows the Department of Administration to adjust appropriation account structures for state agencies if the biennial budget has not been enacted by June 30. The bill also clarifies that appropriations requiring approval from certain state entities are conditional and outlines the process for lapsing appropriations that are no longer necessary.

Furthermore, the bill introduces temporary reallocations of funds, setting specific limits on the amounts that can be temporarily transferred between accounts or funds. The Secretary of Administration is granted authority to manage these reallocations, with the requirement to consult with relevant budgetary officials and report on any reallocations made. The bill repeals a previous section of the 2025 Senate Bill No. 14, indicating a shift in budgetary management practices. Overall, the legislation aims to enhance fiscal flexibility while ensuring oversight and accountability in the management of state funds.