Finding Creative Ways to Invest in the Future – Will Social Impact Bonds Work for the Justice System?

by Kids Forward | December 13, 2012

Home 9 Tax and Budget 9 Finding Creative Ways to Invest in the Future – Will Social Impact Bonds Work for the Justice System?

Pressure to direct government funding toward smart, effective initiatives may be why a new type of bond, social impact bonds, are becoming financing options for social programs.  Early initiatives using social impact bonds – essentially borrowing funds to pay for savings later – have been used in other areas, but now may be making their way into the justice system.

In a recent Reclaiming Futures blog post, an article titled  New York City, Massachusetts Launching First Social Impact Bond Programs in United States, written by Kristina Costa and Jitinder Kohli, discusses how external investors and government agencies are working together to achieve measurable, positive social outcomes.  In the case of New York City, they aim to reduce the recidivism rate of youthful offenders “by at least 10 percent over four years…” saving money that will be returned, with interest, to investors. In Massachusetts, key service providers will be negotiating for a contract to address chronic homelessness and juvenile justice. 

Social impact bonds targeted at preventative measures can shift the focus away from a crisis management approach, which is often costly and ineffective, to a more holistic, long-term approach to save and also improve outcomes for communities in a real and measurable way.      by Katey Collins

Join us to build a Wisconsin where
every child and family thrives.

Recent

Testimony: Opposing Barriers to Health Care

Testimony: Opposing Barriers to Health Care

Main Takeaways Kids Forward submitted the below testimony opposing Assembly Bill 163. This bill would make it harder for people to stay on Medicaid by adding extra paperwork and hoops to jump through. This bill would especially hurt children, parents, and people with...

State Budget: Mental Health

State Budget: Mental Health

Main Takeaways Everyone in Wisconsin, regardless of their county, age, or profession deserves to live in a community that supports their wellbeing. This means access to quality, affordable mental health and substance use disorder services. Governor Evers’ proposed...

Sign up for Emails

Your address helps us identify your legislators and the most relevant messages to send you.