It is encouraging to see the New York state representatives taking a sensible bipartisan line and launching a bill for their SIB, more discussion below:
SIBs See First Statewide Launch In the US
MacIver Institute
A bipartisan bill proposed by Representative Angel Fuentes (D) of New York and signed by Governor Andrew Cuomo will launch the first state-level Social Impact Bond initiative in the United States. This public-private partnership has created a four-year, $13.5 million program in Rochester and New York City aimed at reducing recidivism among 2,000 recently released inmates.
MacIver News Service reported on SIBs, how they work, and their future potential in November 2013.
SIBs, also known as Pay-for-success bonds, incorporate several key players. These players usually include: a local or state government, an intermediary, a private investor, and a service provider.
The government is also responsible for finding a research group to assess whether or not the program is successful. This will determine the amount of payment to be paid to the intermediary for the reduced usage of public social services.
The $13.5 million invested in the program was raised by Bank of America Merrill Lynch, the Rockefeller Foundation, and the Robin Hood Foundation to help the nonprofit Center for Employment Opportunities (CEO) provide rigorous employment training and job placement services.
The intermediary, Social Finance Inc., organized the various organizations and assembled the investment, while the Chesapeake Research Associates will work to determine whether or not the program reaches performance targets.