The bill addresses the submission of the Paid Prior Year Deficiency Report for the first quarter of Fiscal Year 2026, as required by existing legislation. The report, prepared by the Office of the Comptroller, details a total expenditure of $1,606,118.37 across ten departments to cover prior year deficiencies. This amount includes $318,898.85 from accounts that reverted to the General Fund and $1,287,219.52 from accounts that did not have sufficient funds. The funding for these deficiencies will be recouped from the current year appropriations of the respective departments, emphasizing the importance of proper fund allocation and oversight in state financial operations.

Additionally, the bill introduces new provisions for managing vendor invoices and handling insufficient funds within departments. It allows departments to file a supplemental budget or settle with a departmental prior year debt (PYD) when unexpected bills arise, and clarifies the process for managing misplaced invoices. The bill also outlines specific instances where departments may need to provide services despite insufficient funds, facilitating the use of the PYD process for outstanding invoices. Overall, the bill aims to streamline financial management practices and ensure that departments can effectively meet their financial obligations while maintaining accountability.