Transcript of "Pay for Success Bonds - 2012 budget"
Pay for Success Bonds - 2012 BudgetThe 2012 President’s Budget designates $100 million that may be used for Pay for Success bonds. Under Pay forSuccess, Federal programs contract with a financing organization to measurably improve outcomes for at-riskpopulations. With philanthropic and other investors providing up-front funding, the Federal government pays onlyif clearly defined outcomes are achieved. Pay for Success leverages private resources to drive evidence-basedinnovation and to invest in what works. Pay for Success funding is spread across seven pilot and innovation grant programs in five agencies: Education, Labor, Justice, the Social Security Administration, and the Corporation for National and Community Services. Federal agencies would only use the designated funds for Pay for Success projects if there is agreement with a State or locality and a financing organization that a promising Pay for Success pilot is ready to be launched. The Budget includes appropriations language allowing unused Federal funds (e.g., if Pay for Success pilot does not achieve results) to be de-obligated and re-obligated for other high priority programs. 2012 Budget General Provisions (pg. 12, section 734) Maximum Appropriations Program Funding References in the Budget Account (millions/%) Department of Education – Rehabilitation Title V General Services and Disability Research Workforce Innovation Provisions (covering ED $20/5% Congressional Justification (pgs. 131-132); Fund and DOL) Department of Labor – General Provisions Budget (pg. 6) SSA/Supplemental Social Security Administration – SSI Budget SSI R&D $10/26% Security Income (SSI) (pgs. 3 and 5) ED/Office of Innovation Department of Education – Federal Budget Investing in Innovation $15/5% and Improvement (pg. 70) Corporation for National and Community CNCS/Operating Social Innovation Fund $14/20% Service – Congressional Justification (pgs. 10, Expenses 16, and 47) Department of Education – Higher Education ED/Higher Ed FIPSE $15/10% Congressional Justification (pgs. 3, 5-6, 106) Department of Education – Special Education Congressional Justification (pgs. 2, 5-6, 108- ED/Special Ed PROMISE $6/20% 110) DOJ – State and Local Second Chance Act Department of Justice – Office of Justice Law Enforcement (Offender Re-Entry) $20/20% Programs Congressional Justification (pgs. Assistance Programming 37 and 57) Total $100Other Links “Social Impact Bonds: A promising new financing model to accelerate social innovation and improve government performance” (Jeffrey B. Liebman, Center for American Progress) “What Are Social Impact Bonds?” (New York Times) “Rockefeller Foundation Sees Social-Change Dividend” (Wall Street Journal) “Heads Taxpayers Win, Tails They Don’t Lose” (Washington Post) “Obama’s social impact bonds: private money, public benefit” (Baltimore Sun) “For Federal Programs, A Taste of Market Discipline” (New York Times) “The Most Exciting 0.0003% of Obama’s Budget: Social Impact Bonds” (Fast Company)