New York State authorizes $100 million for Pay for Success Initiatives
On January 22 2013 New York State's Governor Cuomo revealed the proposed 2013-14 Executive Budget which included an authorization for the state to undertake up to $100 million of Pay for Success initiatives over the next five years. The budget states:
"Human Services - Pay for Success. Also known as “Social Impact Bonds,” “Pay for Success” contracts are an innovative program to achieve better Human Services outcomes while saving taxpayer money. Program ideas will attract private funding for preventative programming with a promise to investors of a return on investment based on savings the programming achieves. Such programs share common characteristics including: rigorous measurement of outcomes; payments to service providers only when pre-determined outcomes have been successfully achieved as measured by an independent monitor; and creative private sector financing that helps proven service providers fund their operations with minimal risk to government budgets. The Executive Budget authorizes the State to undertake up to $100 million of Pay for Success initiatives over the next five years. The initiative will offer the opportunity to invest in programs in the areas of health, education, juvenile justice, and public safety"
Budget Proposal Detail: http://publications.budget.ny.gov/eBudget1314/fy1314littlebook/HumanServices.pdf