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 outlines a structured review process for funding proposals through a 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 funds may lapse unless they are retained under the SAVI program. The SAVI program is set to expire on June 30, 2030, and will take effect on June 30, 2025.

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