24/7 Newsfeed

Put Reason 24/7 on Your Site


Follow Reason 24/7 on Twitter and via RSS

MA Courts Private Investors for Social Programs

The state has authorized up to $50 million to pay back investors in a few years with a modest level of interest, but only if the state sees the savings it expects. The up-front money most likely will come from a mix of philanthropic donors and private investors seeking some social impact from their funds. The $50 million pot will be shared among HUES to Home, a related program focused more broadly on the homeless, and an entirely different effort aimed at preventing juvenile offenders from landing back in prison.

It is the first state-led, rubber-meets-the-road test of a concept referred to in Massachusetts as “social innovation financing” but known more broadly by the label of “social impact bonds.” Despite minimal real-world experience — a two-year-old effort in Peterborough, England, to cut prison recidivism — the idea has seized the imagination of state policy makers around the country.

Source: Stateline.org. Read full article. (link)

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.