Bill > H2907

This bill proposes to amend Chapter 29 of the General Laws by adding a new section, 9H, which aims to encourage cost savings within state departments and agencies. Under this new provision, if a state department or agency spends less than 75 percent of its annual budget by the end of March in any fiscal year, its employees will be eligible for shared savings in the final quarter of that year. Specifically, 25 percent of any unexpended appropriation at the end of the fiscal year will be distributed equally among all employees of that department or agency, with a cap of a 10 percent bonus on their regular salary; if employee compensation is part of a collective bargaining agreement, the funds will go to the bargaining unit for distribution. The remaining 75 percent of the unexpended funds will be returned to the state treasurer to be deposited into the General Fund, which is the state's primary operating fund. Importantly, this bill clarifies that these savings provisions do not exempt any department or agency from fulfilling its legal duties and responsibilities.