The bill proposes the establishment of a minimum combined balance requirement for the budget reserve fund and the general revenue replacement fund in South Dakota. Specifically, it mandates that if the combined balance of these two funds falls below ten percent of the general fund appropriations for the upcoming fiscal year, the Legislature is required to transfer one-third of the deficit from the general fund to the budget reserve fund over the next three fiscal years. This measure aims to ensure that the state maintains a sufficient financial cushion in its reserve funds.

The new legal language introduced in this bill emphasizes the importance of fiscal responsibility by setting a clear threshold for the combined balance of the budget reserve and general revenue replacement funds. By establishing this requirement, the bill seeks to promote financial stability and preparedness for future budgetary needs, thereby enhancing the state's ability to manage economic fluctuations effectively.