The council would be responsible for exploring alternative funding sources once funds from the initial bond issue are exhausted. These recommendations would allow the state to make resources available to all agencies to fund innovative projects that generate savings or revenues while furthering the agency's objectives. The Productivity Bank would foster increased productivity and provide a source of funds in addition to biennial appropriations. The bank would be an effective way to fund projects that arise after the appropriations for a biennium have been established and during the period when the Legislature is not in session. Through use of a Productivity Bank, agencies could avoid potential delays in the startup of a program and avoid lost savings resulting from those delays.
Agencies request funding and indicate what they can accomplish at that level of funding.
Agencies then report what they actually accomplished compared to the original projections. The Productivity Bank would enable agencies to enhance their operations, demonstrate results and save money within the funding limitations faced by the state. The savings of this recommendation would depend on total start-up funds for the bank and on the percentage of savings required for qualifying projects. These factors would be determined by the council. The use of bonds would produce some up-front costs for interest and principal payments.