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 this program, all state agencies, including Minnesota State Colleges and Universities, can participate in initiatives that promote innovation and efficiency. The bill allows agencies to retain 50 percent of unspent appropriations at the end of a biennium, provided these savings result from innovative practices. 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 outlines a structured review process for funding proposals through a special peer review panel composed of department employees and managers. Agencies must notify the public of proposed projects and obtain approval from the commissioner of management and budget, who must also seek input from the Legislative Advisory Commission. The bill amends Minnesota Statutes 2024, section 16A.28, to clarify that unspent appropriations will lapse unless they are retained under the SAVI program. The effective date for these provisions is set for June 30, 2025, with the first application of the program occurring for funds carried forward from the biennium ending June 30, 2025.

Statutes affected:
Introduction: 16A.28