The proposed bill establishes the State Agency Value Initiative (SAVI) program aimed at promoting innovation and cost savings within state agencies, including Minnesota State Colleges and Universities. Under this program, agencies can identify and implement cost-effective measures that lead to savings. A key feature of the SAVI program is the provision allowing 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 introduces a peer review panel within each agency to evaluate and recommend projects for funding from the SAVI program.

The bill also amends Minnesota Statutes 2024, section 16A.28, to clarify that unspent appropriations will lapse to the original fund unless they are carried forward under the SAVI program. This amendment ensures that the SAVI program's provisions take precedence over existing laws regarding the lapse of appropriations. The effective date for the implementation of the SAVI program and the related amendments is set for June 30, 2025, with the first application of the program to funds carried forward from the biennium ending on that date.

Statutes affected:
1st Engrossment: 16A.28