Follow through on last week’s good week for SIBs, including a helpful editorial from the Daily Courier of Prescott, Arizona…
Editorial: Getting Private Help With Public Problems
Daily Courier
It’s easy to point out all the problems in the world and say they need fixed. It’s not so easy to find the money to fund the fixes.
Like Arizona, other states are struggling with similar issues including education funding and combating homelessness. Cities like Prescott have found themselves in debt and with the inability to keep salaries at competitive levels. With those issues hanging over governments, where are the funds going to come from to improve the social problems?
Australian and English officials asked that same question and a New Zealander provided an answer that has spurred a new movement.
Social impact bonds.
States Seek Private Financial Help To Fix Social Problems
AP
A growing number of states and local governments are turning to an unconventional method of financing possible fixes to big social problems, motivated by tight budgets and little incentive to take a chance on initiatives without a guarantee of results.
On Tuesday, officials in Connecticut, South Carolina and Colorado announced new public/private arrangements to fund so-called “pay for success” projects that aim to help families struggling with drug addiction, improve health outcomes for poor mothers and their children and reduce chronic homelessness.