One article on the SIB state of play and an interesting series of webinars coming up on the SIB/PFS world…
Social Solutions Global, Inc., the leading provider of performance management software for human services, is hosting a free, three-part webinar series, “Building a SIB-Ready Sector,” that will examine the evolution, current state, and future of Social Impact Bonds (SIB) and Pay for Success (PFS) initiatives at the federal, state, and local levels.
The webinar series comes at a time when state and local governments across the country are pursuing innovative contracting strategies to tackle deep-rooted societal issues in a cost-effective way.
SIB and PFS initiatives drive significant private investment into efforts to address the causes of costly societal challenges, generating returns by reducing spending on acute services. ‘Building a SIB-Ready Sector’ features speakers from federal agencies, research institutions, SIB/PFS intermediaries, and SIB/PFS contract candidates and recipients who will provide insight on developing and preparing for SIB/PFS contracts and how this innovative approach can transform the human services sector.
Part one of the series, “Getting Connected: How is SIB/PFS being done today?” being held Wednesday, April 23, 1:30 p.m. EST, features invited speakers:
Tracey Rutnik, Deputy Director for Research & Policy, The Aspen Institute Program on Philanthropy and Social Innovation
Dr. John Tambornino, Director of Economic Support for Families, Office of the Assistant Secretary for Planning and Evaluation, US Department of Health and Human Services
Gary Glickman, Senior Policy Advisor, US Department of the Treasury
Joe Miller, Senior Vice President of the Wyman Center National Network
The webinar will examine the driving forces behind the evolution of SIB/PFS work and will provide insight on federal support for PFS as well as the perspective of a promising SIB applicant.
Pay For Success Can Educate Inmates, Save Public Money
Paul Korotkin – Times Union
Gov. Andrew Cuomo couldn’t sell the state Legislature on his idea to offer more college education to prison inmates. Too many people objected to having the public pay for a benefit for criminals that many honest people can’t afford. But there’s a solution to this problem.
First used in Great Britain and more recently in the United States is a funding mechanism referred to as “Pay for success,” or PFS. The basic concept of PFS is, rather than have the taxpayers fund an experimental program — in this case, $5,000 per inmate enrolled in a college program — the government finds a private organization to cover the cost upfront. Included in the funding is the cost for an independent validator who is responsible for determining whether the experiment saved the taxpayers money.
The independent validator completes this task well after the end of the program, based on criteria developed before the program begins by the three involved parties — the private enterprise, the governmental entity and the validator.
PFS works best with ideas that are not necessarily politically popular, but have a documented potential to save the taxpayers money in the medium-to-long-run.