The bill introduced in the Minnesota Legislature proposes the establishment of the State Agency Value Initiative (SAVI) program. This program is aimed at encouraging state agencies, including colleges and universities, to identify and implement cost-effective and efficient changes in their operations that lead to financial savings. If these innovations result in unspent funds at the end of a biennium, the agency is allowed to retain 50% of these savings. These retained funds can be used by the agency for approved projects that align with their mission, but they cannot commit these funds to future costs beyond the saved amounts.

To manage the allocation of these funds, each participating agency must set up a peer review panel, which comprises both regular employees who have contributed to cost-saving measures and department managers. This panel will review and decide which projects get funded.

Moreover, any use of these funds must be transparent: it requires a posting on the agency’s website for 30 days and approval by the commissioner of management and budget. The commissioner also needs to consult the Legislative Advisory Commission, which has another 30 days to review and make recommendations on the project funding.

Finally, each participating agency will have a designated account specifically for the savings accumulated through the SAVI program, with guidelines on how these funds should be managed and expended.