PLY: Discussion from New South Wales where Premier Mike Baird appears enthusiastic about SIBs while Milwaukee is similarly enthused and there’s a paper from the Brookings Institute endorsing the use of PFS mechanisms….welcome to Monday’s SIB News, happy scrolling:
Baird Backs Social Benefit Bonds
Robin Christie – Finsia
New South Wales Premier, Mike Baird, has outlined how investors are helping to transform the lives of disadvantaged Australians.
Speaking at a Committee for Economic Development of Australia (CEDA) event in Sydney on Friday, he pointed to the state’s social benefit bonds as an initiative that his office was proud of – and one that’s providing tangible social and economic results.
Having explained that NSW, currently sitting at the top of CommSec’s State of the States rankings, is now leading the country on many economic indicators. But that there are certain obligations that come with such growth.
“When the economy moves, I think there’s an obligation on us to take the most vulnerable with us,” he said. “If you want the capacity in the long term for society to look after the vulnerable and to give the disadvantaged every chance, then you have to be fiscally responsible”.
One Way To Lower Recidivism In Milwaukee: Social Impact Bonds?
WUWM
One tool a couple state lawmakers want to use in troubled Milwaukee neighborhoods is social impact bonds.
The name might be a bit of a misnomer because no actual bonds are issued. Supporters say social impact bonds, or SIBs, can help address problems such as recidivism, while also saving taxpayer money.
Identifying Education Outcomes For Social Impact Bonds For Early Childhood
Emily Gustafsson-Wright, Megan Golden & Sam Aigner-Treworgy – Brookings
In the past few years, the social impact bond (SIB) has gained significant momentum around the world. This innovative financing mechanism, harnesses private capital to fund social services. Globally today, SIBs and DIBs are being used for nearly 40 programs in various sectors, including for preschool education in Utah and Illinois, and for girls’ education in India.
While still fairly nascent, these innovative funding mechanisms have great potential to drive private capital toward funding social services, to expand programming for those most in need, and to improve the lives of many. At the heart of a SIB contract is a set of agreed-upon metrics on which the repayment is based.