From: The Honorable John K. Delaney
to urge President Obama to include funding for Pay For Success (a.k.a. Social Impact Bonds) in the FY15 budget he submits to Congress.
to pay for success; the government doesn’t pay if the intervention proves ineffective as measured by an independent third-party evaluator. This minimizes risk to taxpayers while providing the incentives to maximize the effectiveness for our constituents.
Promise and Potential of Social Impact Bonds” by Michele Jolin and George Overholser.
put it succinctly: “I love this pay-for-success model.” Colorado Gov. John Hickenlooper, a Democrat, plans to use the SIB approach to target homelessness, and New York’s Democratic governor, Andrew Cuomo, praised it as cost-effective, adding that “solutions
that work can be brought to scale.”
Enterprise Institute (AEI) and “Social Impact Bonds: Social Finance: A Primer” by Sonal Shah and Kristina Costa of Center for American Progress (CAP.)
firstname.lastname@example.org or Allie Kimmel with Congressman Polis at
President Barack Obama
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500
Dear President Obama,
We write to recommend that you include Pay For Success funding in your budget for fiscal year 2015.
arrangements such that the government only has to pay if the desired outcome is achieved and certified by an independent third-party evaluator. This minimizes risk to the taxpayer, and maximizes incentives for effective interventions and outcomes that will
both serve the common good and ultimately save the government money, creating a true double-bottom line for both the government and private investors. As you know, more and more private capital has been set aside by philanthropic organizations and social
investment funds to fund these initiatives and we should work with them to accomplish our shared objectives.
care outcomes. Up to this point, states have taken the lead, but federal involvement is needed in order to ensure incentives are aligned. Without federal involvement, states only have the incentive to fund projects that will save the state money, but they
don’t have an incentive to use Pay For Success financing for initiatives that will save the federal government money. That is why is so important to include this funding in your FY15 budget and why we support creating a Pay For Success Incentive Fund within
the Treasury Department that can help align cost-saving incentives and provide outcome payments, credit enhancement, and technical assistance to agencies on specific projects. This is especially true with our difficult fiscal situation where an opportunity
to improve outcomes while saving money is a goal that our colleagues on both sides of the aisle can agree on.