Bill Text: NJ AR161 | 2012-2013 | Regular Session | Introduced
Bill Title: Supports nationwide efforts to develop and implement social impact bond and pay for success programs.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2013-03-21 - Introduced, Referred to Assembly Commerce and Economic Development Committee [AR161 Detail]
Download: New_Jersey-2012-AR161-Introduced.html
Sponsored by:
Assemblyman ANGEL FUENTES
District 5 (Camden and Gloucester)
Assemblyman ALBERT COUTINHO
District 29 (Essex)
SYNOPSIS
Supports nationwide efforts to develop and implement social impact bond and pay for success programs.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution supporting nationwide efforts to develop and implement social impact bond and pay for success programs.
Whereas, Governments deliver healthcare and social services in ways that often fail to address the underlying causes of health and social problems, resulting in inefficiency and waste; and
Whereas, Organizations that provide preventive healthcare and social services face great difficulty in securing necessary financing to support their programs, which very often prevents these organizations from serving the populations most in need of their services; and
Whereas, The provision of preventive healthcare and social services can address the underlying causes of health and social problems, preventing the need for costly government services, resulting in government savings; and
Whereas, Social impact bond and pay for success programs create a financial mechanism by which governments partner with philanthropic or other private investors to fund the provision of preventive healthcare and social services administered by social service organizations; and
Whereas, Investors will receive a return on their investment from the government if the preventive services provided by the social service organizations result in positive social outcomes and government savings; and
Whereas, The federal government, several states, and various municipalities have developed social impact bond or pay for success initiatives with the intent of improving a range of social services; and
Whereas, In fiscal year 2012, the federal government authorized up to $100 million for the administration of pay for success initiatives concerning education and children with disabilities; and
Whereas, The state of Massachusetts has developed a social innovation financing program using the pay for success contract model to address chronic homelessness and juvenile recidivism; and
Whereas, The state of Pennsylvania is considering legislation that would create a pay for success pilot program to address prison recidivism, homelessness, and education; and
Whereas, Los Angeles County in the state of California is exploring ways in which the pay for success model can expand the Los Angeles County Sherriff Department's Just In Reach program, which addresses homeless criminal recidivism; and
Whereas, Cuyahoga County in the state of Ohio has issued a Request for Response directed towards organizations who wish to partner with Cuyahoga County in a human services-related pay for success program; and
Whereas, New York City has partnered with a nonprofit and nonpartisan social research organization to reduce the recidivism rate of juvenile offenders, with $9.2 million in working capital provided by Goldman Sachs; and
Whereas, The city of Fresno in the state of California is using the pay for success model, funded by the California Endowment, to address public health issues; and
Whereas, The State of New Jersey is considering legislation establishing a five-year social innovation loan pilot program for the purpose of encouraging private investment in preventive and early intervention health care to reduce public expenditures related to those services; and
Whereas, It is altogether fitting and proper and in the best interest of the citizens of New Jersey and the citizens of this nation to encourage and support the development of social impact bond and pay for success programs on the municipal, county, state, and federal levels to bring innovation and cost savings to the provision of much needed health and social services; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House encourages and supports the development and implementation of social impact bond and pay for success programs nationwide and believes these programs will have a positive impact on the provision of health and social services at the municipal, county, state, and federal levels.
2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk thereof, shall be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the Governor of the State of New Jersey, and the President of the New Jersey Senate.
STATEMENT
This Assembly resolution encourages and supports the development and implementation of social impact bond and pay for success programs. Social impact bond and pay for success programs will bring private investment and innovation into the public sphere. This House supports the development of these programs nationwide.
Governments deliver healthcare and social services in ways that often fail to address the underlying causes of health and social problems, resulting in inefficiency and waste. Organizations that provide preventive healthcare and social services often address health and social problems using innovative and effective approaches, but face great difficulty in securing necessary financing to support their programs. Social impact bond or pay for success programs create a financial mechanism by which governments partner with philanthropic or other private investors to fund the provision of preventive healthcare and social services administered by social service organizations. This investment funding enables social service organizations to intervene in addressing health and social problems before the government must take action, reducing public expenditures. If the government saves money and other positive social outcomes are met, investors will receive a return on their investment from the government.
