The proposed bill establishes the State Agency Value Initiative (SAVI) program aimed at encouraging state agencies in Minnesota to identify and implement cost-effective measures that lead to savings. Under the new program, all state agencies, including Minnesota State Colleges and Universities, can participate. A key feature of the SAVI program is the ability for agencies to retain 50 percent of unspent appropriations at the end of a biennium, provided these savings result from innovative practices or efficiencies. These retained funds must be used for projects that align with the agency's mission and do not create future financial obligations.

Additionally, the bill amends Minnesota Statutes 2024, section 16A.28, to allow for exceptions to the general rule that unspent appropriations lapse at the end of a fiscal year. Specifically, it states that amounts not carried forward and remaining unexpended at the end of a biennium will lapse to the original fund, except as provided in the SAVI program. The bill also outlines the establishment of a peer review panel within each participating agency to evaluate and recommend projects for funding, as well as the creation of a SAVI-dedicated account for managing the savings. The effective date for these provisions is set for June 30, 2025.

Statutes affected:
Introduction: 16A.28