Friday's New York Times has a story a new program, funded by Social Impact Bonds, offering services to young offenders in New York.
As states around the country face rising budget shortfalls, many are developing new ways of financing and providing human and preventative services. They include Social Impact Bonds, Human Capital Bonds, or "Pay for Success" models. Many involve private investors funding preventative services and getting their money back, and a profit, if and when their services attain the agreed-upon result.
In the Times:
"Elizabeth Gaynes, who has led the Osborne Association, one of two groups running the Rikers Island program, for 28 years, takes a realist's approach.... Ms. Gaynes said she doubted that without this experimental financing mechanism, her organization would have found the money to aid so many young people. The group has a mandate to serve all of the roughly 3,000 young people who pass through Rikers each a year.
" 'We're serving black and brown people who got arrested and went to Rikers Island,' " says Ms. Gaynes. ' There isn't a lot of clamoring to give them services. ' "
The story also explores questions about the new methods, and other options, such as the "Robin Hood tax," to provide similar funding.
CAHS is working with several partners to host a half-day informational conference on some of the new models being used in nearby states. Click here for an invitation and here for an agenda. Our information conference will take place from 8:30 am - 12:30 pm December 4 at the Legislative Office Building, and offer the chance to hear from people working to use new financing methods to address chronic homelessness and juvenile recidivism in Massachusetts. Speakers also include the White House's Representative on Innovations in Social Program Funding and agency heads from Connecticut. Please RSVP to me, or to Ed Nevins, firstname.lastname@example.org