45-12-95. Duty of Office of Planning and Budget to encourage state agencies to identify and implement cost-saving measures and to decentralize state government.

It is the intent of the General Assembly to encourage state agencies to identify and implement cost-saving measures and to decentralize state government.#

It is the duty of the Office of Planning and Budget to assist state agencies in identifying and implementing measures that provide current services to the public at a reduced cost or improved services to the public at the same cost and that whenever possible, consistent with such objectives, those services be administered or provided from facilities that are decentralized.#

The Office of Planning and Budget is authorized to encourage state agencies to identify and propose cost-saving initiatives by establishing a system of financial incentives. A cost-saving initiative shall include a description of the proposed action to effect a cost reduction and the proposed use of the resulting savings. A system of financial incentives to encourage agencies to identify and propose cost-saving initiatives shall include the following provisions:#

1. (1)

   Any agency that implements an approved cost-saving initiative shall be eligible to receive one-half of the resulting savings to be spent on other unfunded or underfunded needs of the agency’s own choosing, provided that any such expenditures are consistent with the organization’s approved strategic plan and do not create a continuing funding requirement in future fiscal years unless approved by the General Assembly in the next appropriations Act; and#

2. (2)

   Where cost savings are one-time in nature, the implementing agency shall be eligible to receive one-half of the savings for one year. Where cost savings result from reductions in continuation spending, the implementing agency shall be eligible to receive one-half of the savings each year for a period of three years.#

The Office of Planning and Budget must review and approve all proposed cost-saving initiatives prior to their implementation for the implementing agency to be eligible for receipt of financial incentives. However, as part of this review, the Office of Planning and Budget must consult with a cross section of agencies and the House Budget and Research Office and the Senate Budget and Evaluation Office.#

The Office of Planning and Budget shall maintain records on all approved cost-saving initiatives and, with the Governor’s approval, shall reflect in the budget report submitted each year to the General Assembly the cost reductions in the affected agencies’ budgets and the resulting financial incentives by agency.#

The Office of Planning and Budget shall issue rules and regulations as necessary to implement this program.#