America celebrates today a wondrous day for the United States and indeed, the world: Thanksgiving. We wish all our readers wherever you may be celebrating, a wonderful day to celebrate on the multitude of successes delivered by the USA to our delightful planet, Earth.
Today in SIB, the newsflow is from Utah and Austin, Texas…
Op-ed: Pay For Success Model Changes Lives
Mark Innocenti – Salt Lake Tribune
Utah has long been a pioneer state, and for more than two years we’ve been pioneers in the field of early childhood education. Our groundbreaking first-in-the-nation Pay for Success program for early childhood education is providing high-quality preschool education for up to 3,700 disadvantaged children and their families in the Granite School District. Without the support of private investment, these at-risk children would otherwise not have access to these vital services.
An investment in high-quality preschool programs means lower long-term taxpayer costs for education and health services, expanded social and economic opportunities and — ultimately — stronger communities. Unfortunately, the state of Utah presently does not provide funding for much-needed, high-quality preschool serving vulnerable kids. The Pay for Success model is a win-win-win for schools, taxpayers and — most importantly — our children. If the program fails for any reason, the private investors lose money — not the taxpayers.
Austin Wonders If Social Impact Bonds Can Cure Social Ills
Andrew Keatts – The Urban Edge
Like the rest of the country, Austin is trying to figure out if an new financing model can crack some of the biggest social problems it faces.
Earlier this year, a group of local nonprofit service providers received $126,000 in grants from Third Sector Capital Partners, Inc. to study whether social impact bonds, also known as “pay for success,” could help solve three persistent local problems.
Through social impact bonds, private investors pay for government-run social programs, with the potential to get a return on their investment from the savings they those programs help create. The government repays the upfront investment only if the program meets predetermined benchmarks. Investors collect a return on their investment if the program is even more successful.