Two great articles today, the LA Times looks at the radical idea of how somebody else is taking the risk while in NY State we have a huge increase in expected SIB usage, more than quadrupling the previous experiment – great news!

NY Gov. Cuomo Delivers ‘Innovative’ Budget Plan
North Country News

Gov. Andrew Cuomo today delivered his speech on the $137 billion 2014-2015 Executive Budget proposal, calling it an “innovative action plan.”

His office has issued a summary of the proposal which includes tax reforms, school aid funding reforms, and a plan to finance elections with public money.

The Budget increases its utilization of innovative social impact bonds from $30 million, as authorized in the 2013-14 Budget, to a total of $125 million. New initiatives will be undertaken in the areas of early childhood development and child welfare, health care, public safety, and developing solutions to reduce homelessness.

A New Way To Attack Social Problems: ‘Pay For Performance’ Projects
LA Times

The cornerstone of criminal justice reform is the belief that offenders leaving prison could be prevented from committing new crimes and getting locked up all over again, if only government could find the right social service organization to provide the right programming. Crime would drop, some prisons could close and taxpayers would save money.

First, though, officials have to identify rehabilitation programs that work, and that means evaluating claims and evidence offered by competing providers, and perhaps making so many wrong choices before landing on the right one that the effort hardly seems worth it. Even elected officials and high-ranking bureaucrats who believe in criminal justice reform are skittish about trying something new, so they often give in to their colleagues who prefer costly and unsuccessful but comfortably familiar policies on sentencing, imprisonment and parole.

But what if someone else agrees to take all the risk? What if some outsider — a nonprofit service provider, let’s say, or a charitable foundation, or maybe even a commercial bank — raises the funds, runs the program, produces the results, then gets reimbursed with public money only after presenting verified proof of success?