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 enhance efficiency and result in cost 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 provision that allows agencies to retain 50 percent of any unspent appropriations at the end of a biennium, provided these savings are a result of 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, to clarify that unspent appropriations will lapse unless they fall under the SAVI program's guidelines.

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