Social Impact Bonds

26 September 2013

Issues facing governments

• Program design problems

• Fiscal challenges

• Failures of political will

New York City: Rikers Island SIBOutcome: Reduce recidivism by 10% or more among a cohort of 3,000 adolescent males at Rikers Island prison over 4 years

Cost of interventions: $9.6 million

Maximum return to investors: $11.7 million (+$2.1 mil)

Unique features: Investment guarantee

New York City: Rikers Island SIB

New York City: Rikers Island SIBHow the guarantee works

New York City: Rikers Island SIB

CT Recipient of SIB Lab/Rock. Fdn TA; planning program to reduce recidivism

IL Recipient of SIB Lab/Rock. Fdn TA to develop PFS contracts

MA PFS projects to address homelessness, juvenile justice; SIB Lab/Rock. Fdn TA recipient

CA First health-focused SIB; demo project to reduce rates of asthma among children

NY First SIB bond in USA, program to reduce recidivism among adolescents in Rikers Island prison

OH With DOJ, testing PFS model for prisoner reentry program; recipient of SIB Lab/Rock. Fdn TA

SC Recipient of SIB Lab/Rock. Fdn TA; passed Senate Bill to establish Trust Fund to fund PFS contracts

UT First early childhood ed.-focused SIB; preschool program for at-risk children

HI House recommended bill to conduct study on SIBs for early learning

NJ Bill in Senate to administer 5 year SIB pilot program and study on healthcare

PA PFS legislation under consideration for pilot programs

CO Denver City is recipient of SIB Lab/Rock. Fdn TA

National Progress

Center for American Progress series: Social Impact Bondshttp://www.americanprogress.org/series/social-impact-bonds/view/

Pay for Success Learning Hubhttp://payforsuccess.org/

Social Finance UShttp://www.socialfinanceus.org/

Additional Resources