A plan to reduce the empty home blight with a SIB in Richmond, Virginia and progress too in New Zealand while in the UK, some socialists continues to push back against any change to the unsustainable existing NGO models which simply cannot raise the funding from (de facto bankrupt) government channels.
Richmond Looks To Social Impact Bonds To Clean Up Blight
Karina Ioffee – Contra Costa Times
Abandoned properties continue to plague the city, requiring it to spend an estimated $1.7 million, or about $7,000 per home, just to keep them shuttered, squatters out and the grass mowed.
But next week, Richmond will take a big step toward addressing the problem when it sells its first round of social impact bonds in exchange for $3 million. The money will be used to acquire and repair abandoned homes, which today number around 800.
In doing so, Richmond will join a growing number of cities using social impact bonds to fix housing, improve student grades and fight recidivism with money not always available in the general fund.
NZ – Government Commended For Progress On Social Bonds
Scoop
Government should be commended for the introduction of a social bond in the mental health sector, as announced by Finance Minister Bill English and Minister of Health Jonathan Coleman. It is the first of four social bonds the government aims to introduce.
The $29 million set aside for social bonds has the potential to save taxpayer money whilst also improving social outcomes.
In Britain, The Government Is Paying Nonprofits To Find Innovative Ways To Reduce The Cost Of Health Care
Fast CoExist
As governments struggle to meet the cost of delivering social services, many are turning to private capital and new funding models called “pay-for-success.” Instead of funding a service itself, governments will contract with outside groups to deliver certain pre-determined outcomes. For example, New York City has a contract with Goldman Sachs and Bloomberg Philanthropies to cut the rate of re-offending at Rikers Island prison. Goldman and Bloomberg fund the project, which is carried out by local nonprofits. If the consortium reduces re-offending by certain amounts, the city agrees to pay a higher rate of return to the investors than otherwise.
PLY: The ‘magic money tree’ doesn’t exist but clearly a lot of political thinking doesn’t stretch to this fundamental realpolitik. This is the fundamental problem with increasing SIB usage in Europe currently.