SAVI program established for state agencies to encourage innovation and cost savings.

HF 289 establishes the SAVI (State Agency Value Initiative) program, allowing all Minnesota state agencies - including Minnesota State Colleges and Universities - to retain 50% of unspent operational funds from cost-saving innovations or efficiency measures. Agencies must use these retained funds only for mission-related projects, after a peer review panel (composed of employees and managers) recommends the project and the commissioner of management and budget approves it. The program requires agencies to publicly post project spending plans for 30 days and undergo review by the Legislative Advisory Commission before funding. This policy directly affects state agencies by creating a structured way to reinvest savings into new initiatives without creating future financial obligations.