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HF289 (Legislative Session 94 (2025-2026))

SAVI program for state agencies to encourage innovation and cost savings establishment

Related bill: SF636

AI Generated Summary

The bill HF289, introduced in the Minnesota House of Representatives, establishes the State Agency Value Initiative (SAVI) program to encourage cost savings and efficiency in state government operations.

Key Provisions:

  1. Program Establishment:

    • SAVI is designed for all state agencies, including Minnesota State Colleges and Universities, to identify and implement cost-saving measures.

  2. Retained Savings:

    • 50% of unspent appropriations from agency operations at the end of a biennium, resulting from efficiency improvements, may be carried forward and retained.
    • These savings must be used only for agency projects that support their mission and must not create ongoing financial obligations.

  3. Peer Review Panel Process:

    • Each agency must establish a peer review panel consisting of agency employees and managers to evaluate and decide which projects receive SAVI funding.
    • Approved projects must be publicly posted for 30 days on the agency’s website.
    • Spending requires approval from the Commissioner of Management and Budget and review by the Legislative Advisory Commission (LAC). If LAC does not make a recommendation within 30 days, it is considered a negative recommendation.

  4. SAVI Dedicated Account:

    • Each participating agency will have a dedicated SAVI account in a special revenue fund to manage its savings and funded projects.
    • Funds in the account are automatically appropriated for authorized purposes.

Overall Purpose:

The bill incentivizes cost-saving innovations within state agencies and ensures that these savings are reinvested into meaningful projects to improve government efficiency.

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Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025SenateFloorActionReceived from House
February 09, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
March 02, 2025SenateFloorActionIntroduction and first reading
February 12, 2025HouseFloorActionAuthor added
February 16, 2025HouseFloorActionCommittee report, to adopt as amended
March 02, 2025SenateFloorActionReferred toState and Local Government
February 16, 2025HouseFloorActionSecond reading
February 25, 2025HouseFloorActionHouse rule 1.21, placed on Calendar for the Day
February 25, 2025HouseFloorActionAuthor added
February 26, 2025HouseFloorActionAmended
February 26, 2025HouseFloorActionThird reading as amended
February 26, 2025HouseFloorActionBill was passed as amended

Citations

 
[
  {
    "analysis": {
      "added": [
        "A provision that allows 50 percent of unspent appropriations due to cost savings to be carried forward."
      ],
      "removed": [
        "No direct removal, but section is superseded by new SAVI provisions."
      ],
      "summary": "This bill amends section 16A.28 subdivision 3, impacting how appropriations can be carried forward.",
      "modified": [
        "Adjusts the conditions under which funds can be retained for agency proposals."
      ]
    },
    "citation": "16A.28"
  }
]

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