As reported by Forbes, a bi-partisan bill, the Social Impact Bond Act, was recently introduced in the House of Representatives by Reps. Todd Young (R – Indiana) and John Delaney (D – Maryland) aimed at addressing difficult social programs. The bill would also require a one-time $300 million appropriation to pay for the positive outcomes of programs funded through this mechanism and to fund feasibility studies and evaluations of Social Impact Bond projects.
From the article:
Also known as Pay for Success, Social Impact Bonds are all about public-private partnerships and measurable outcomes. They’re a way for investors to work with governments and nongovernmental organizations or other service providers to address seemingly intractable problems, from child abuse to maternal health, among low-income or vulnerable populations. Whatever the problem, the outcomes must be measurable.
If the project reaches its goal as determined by a third-party evaluator, the government pays back donors with a small profit. If those objectives aren’t reached, there’s no return.
If enacted, this new program is envisioned to work in the following manner:
…to receive federal funding state or local governments would need to identify a social problem they hope to address that would have positive social outcomes and federal savings. Then they would submit a Social Impact Bond feasibility study to the Department of the Treasury, which would consult with a new entity called the Federal Interagency Council on Social Impact Bonds and the head of any pertinent federal agencies. Treasury would only pay those local governments if a third-party evaluator determined the project had achieved previously agreed upon outcomes.
To learn more about social impact bonds and other innovative approaches for funding and financing projects and programs attend the MACo Summer Conference session “Doubling Your Dollars and Outcomes – Innovative Approaches for Funding and Financing Projects.” This general session will be held in the Ocean City Convention on Friday, August 15 at 10:45 am.
Learn more about MACo’s 2014 Summer Conference:
- Registration Brochure
- Online Registration
- Reduced Hotel Rates List
- Sponsorship Brochure
- Exhibitor Brochure
- Golf Tournament Registration Form
- Conduit Street Coverage of MACo’s Summer Conference
Contact Meetings & Events Director Virginia White with questions about Summer Conference.