The proposed bill aims to establish 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 amount from the general fund to the budget reserve fund over the next three fiscal years. This measure is intended to ensure financial stability and preparedness for future fiscal challenges.

To implement this requirement, a new section will be added to chapter 4-7 of the South Dakota law, detailing the conditions under which the transfers must occur. The bill emphasizes the importance of maintaining a healthy balance in these funds to support the state's financial health and to safeguard against potential budget shortfalls.