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. 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. 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. The panel will recommend projects for funding, which must then be approved by the commissioner of management and budget, following a public notice period. The bill also creates a SAVI-dedicated account for each participating agency to manage its savings and fund approved projects. The provisions of this bill will take effect on June 30, 2025, and it includes an amendment to Minnesota Statutes 2024, section 16A.28, subdivision 3, clarifying that unspent appropriations will lapse unless they are retained under the SAVI program.

Statutes affected:
1st Engrossment: 16A.28
2nd Engrossment: 16A.28