Savings Sharing Program
FLORIDA'S SAVINGS SHARING PROGRAM
PROCEDURES
Authority.
216.1815, F.S. (Agency Incentive and Savings Program)
216.262, F.S. (Incentive for Eliminating Positions)
Purpose of the Program.
Service First grants options to agencies and employees that provide incentives, rewards and recognition for cost savings and efficiencies. The purpose of the Savings Sharing Program is to provide a process by which agencies can retain a portion of their budget for implementing proposals and programs that result in increased operational efficiency and/or eliminate or reduce state expenditures. These shared savings can be used as a means to retain, reward and recognize high-performing employees.
Savings Sharing Program Overview.
State agencies will be able to establish and promote a Savings Sharing Program that encourages and recognizes employees or groups of employees for implementing proposals that result in an actual, measurable reduction in state expenditures. Agencies shall submit a plan outlining implemented proposals that resulted in reduced state expenditures (salaries and expenses) along with a budget request to amend their operating budget to the Executive Office of the Governor (EOG). After review and upon approval, the EOG shall forward the request to the Legislative Budget Commission (LBC) at least 30 days prior to the date of the commission meeting at which the request will be considered. The savings approved for retention may be used for salary increases to high-performing employees, for non-recurring performance bonuses and for incentive awards to employees who initiate proposals that result in eliminating or reducing state expenditures. However, in accordance with section 216.1815 (5), Florida Statutes, any salary increases or other expenditures must not create a recurring cost to the state in excess of the recurring savings achieved by the agency.
General Policies and Procedures for the Agency Incentive and Savings Program- 216.1815, F.S.
· Each agency should develop a marketing strategy that encourages employee participation; promotes and actively publicizes the Saving Sharing Program, and encourages supervisors and managers to identify business processes that can be re-engineered, initiate projects that will increase operating efficiency and to support and promote the Program. Agencies should encourage employees to identify existing programs and activities conducive to outsourcing, privatization or elimination of positions that still allow service levels to continue to the public. Employees and teams should also be encouraged to submit ideas (Appendix A) and propose procedures that will eliminate or reduce state expenditures.
· The decision of whether or not to adopt and implement a cost-saving proposal should be made by the agency head.
· Written, cost-saving proposals, including a thorough cost-benefit analysis, should be submitted to the agency budget office for review. The budget office will verify compliance with chapter 216 regarding the Agency Incentive and Savings Program and the budget amendatory process.
· Agency plans and associated budget amendment requests shall be submitted to the EOG. The EOG will review the requests and forward to the LBC at least 30 days prior to the date of the commission meeting at which the request will be considered. The Governor and LBC must approve the request. In accordance with section 216.1815 (2), Florida Statutes, the budget amendment must specify the following:
(a) The modifications to approved programs resulting in efficiencies and cost savings;
(b) The amount and source of the funds and positions saved;
(c) The specific positions, rate, amounts, and sources of funds the agency wishes to include in its incentive expenditures;
(d) How the agency will meet the goals and objectives established in its long-range program plan;
(e) How the agency will meet performance standards established by the Legislature and those in its long-range program plan; and
(f) Any other incentive expenditures that the agency believes will enhance its performance.
· In accordance with section 216.1815 (6), Florida Statutes, each agency allowed to retain funds shall submit in its next legislative budget request a schedule showing how it used such funds (Appendix B).
· Agencies should track and document (Appendix B, Section C) the savings realized or additional revenue generated by the saving sharing proposals implemented. (Significant implementation costs must be deducted from the benefits realized).
General Policies and Procedures for providing incentives for eliminating positions – 216.262, F.S.
· Upon agency request, the EOG may delegate authority to add and delete authorized positions or transfer authorized positions from one budget entity to another within the same division, and may approve additions and deletions of authorized positions or transfers of authorized positions within the agency when such changes would enable the agency to administer its programs more effectively.
· The agency may be eligible to retain 20 percent of the salary dollars associated with the eliminated positions to be used for recurring, permanent salary increases.
· The agency shall submit a budget amendment request to the EOG explaining the efficiencies achieved. After review and upon approval, the EOG shall forward the request to the LBC at least 30 days prior to the date of the commission meeting at which the request will be considered. Once approved, the eliminated positions will be placed in reserve until a legislative budget request to permanently eliminate the position(s) can be established.
Reporting Procedures. The Department of Management Services will survey state agencies annually to capture the percent of dollars saved by eliminated positions, pursuant to Section 216.1815, F.S. and by implementing internally generated proposals that reduce state expenditures, pursuant to Section 216.262, F.S. Each agency should provide information on the savings sharing dollars approved by the LBC regarding:
1. The number of budget amendments submitted to the LBC pursuant to s. 216.1815, s. 216.262, F.S.
2. The savings associated with each proposal.
3. The amount of funds approved by the LBC for agency retention.
4. The number and amount of permanent salary increases provided to employees.
5. The number and amount of other expenditures.
6. Pursuant to Section 110.1245, F.S., please provide the following information:
a. The number of cost-saving proposals submitted by employees or teams of employees.
b. The actual cost savings realized as a result of implementing employee and group proposals.
c. The number and types of awards made to employees or teams for adopted proposals and the dollar amount of each award.
Division of Human Resource Management Page 1 7/22/02