1.1 	A bill for an act
1.2 	relating to state government; establishing a retained savings program for 
1.3 	executive branch agencies;proposing coding for new law in Minnesota Statutes, 
1.4 	chapter 15.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [15.76] SAVI PROGRAM.
1.7 		Subdivision 1.Program established. The state agency value initiative (SAVI) 
1.8 	program is established to encourage state agencies to identify cost-effective and efficiency 
1.9 	measures in agency programs and operations that result in cost savings for the state. All 
1.10 	state agencies, including Minnesota State Colleges and Universities, may participate in 
1.11 	this program.
1.12 		Subd. 2.Retained savings. In order to encourage innovation and creative cost 
1.13 	saving by state employees, 50 percent of any unspent funds from the agency biennial 
1.14 	appropriation may be retained by the agency to fund specific agency proposals or projects. 
1.15 	Agencies choosing to spend retained savings funds must ensure that project expenditures 
1.16 	do not create future obligations. The retained savings must be used only to fund projects 
1.17 	that directly support the agency's mission.
1.18 		Subd. 3.Special peer review panel. Each participating agency must organize a 
1.19 	peer review panel that will determine which proposal or project receives funding from 
1.20 	the SAVI program. The peer review panel must be comprised of department employees 
1.21 	who are credited with cost-saving initiatives and department managers. The ratio between 
1.22 	managers and department employees must be balanced.
2.1 		Subd. 4.SAVI-dedicated account. Each agency that participates in the SAVI 
2.2 	program shall have a SAVI-dedicated account into which their savings are deposited. The 
2.3 	agency will manage and review projects that are funded from this account.