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    Entries in Pay for Success (2)

    Thursday
    Mar242016

    A New Twist on ‘Pay for Success’ Programs

    A variation on the existing model would provide a money back guarantee should a project fail.
    BY  MARCH 24, 2016

    This year has already seen a flurry of activity when it comes to governments and the private sector partnering on social programs. Fewer than three months into 2016 and three governments have announced so-called pay for success or social impact bond projects, boosting the total number of such programs to 11 across the country.

    Now, there may be a new option for governments interested in the model, but wary of its complicated nature. Under a pay for success or social impact bond program, private funders finance a preventive social or health program and only get paid back if the project meets its goals over the course of a predetermined set of years. The new model, announced by Third Sector Capital Partners on Thursday, offers a money back guarantee.

    With a “social impact guarantee” or SIG project, governments front the money (instead of a private investor) and get paid back if the project doesn’t meet its goals. Specifics are sparse, but Third Sector co-founder George Overholser says he's currently working with two states on creating the country’s first SIG projects and hopes to announce them by the end of this year.

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    Friday
    Feb192016

    The Week in Public Finance: Atlantic City’s Intervention, New Pay-for-Success Projects and Arizona's Pension Reform

    A roundup of money (and other) news governments can use.
    BY  FEBRUARY 19, 2016

    Intervention in Atlantic City

    Top New Jersey lawmakers have finally announced details of their plan to take over Atlantic City’s finances.The proposal was unveiled this week in a state Senate bill that gives more power to state financial overseers.

    Atlantic City’s tax revenues have dropped dramatically in recent years as multiple casino closures have dried up the city’s main industry and revenue source.

    "The intervention plan will enable the state and the city to work together to accomplish what Atlantic City can't do on its own," said Senate President Stephen Sweeney, a co-sponsor of the bill. "The city's fiscal crisis is severe and immediate. ... The state has to take a more direct role."

    The bill would expand the role of the state's Local Finance Board chief so that they could not only renegotiate the struggling city's debt but also dissolve or consolidate city agencies and departments, share services with Atlantic County and sell city assets.

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