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Results-Based Financing for Preschool Catching On

March 21, 2014 /

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The MDT Disadvantaged Business Enterprise (DBE) Program encourages and supports the participation of companies owned and controlled by socially and economically disadvantaged individuals in transportation contracts.

Under "results-based financing," also known as "pay-for-success" or "social impact bonds," private investors or philanthropists provide the initial funding for social programs that are expected to save taxpayer dollars down the road. If the policy goals are met and the savings materialize (according to third-party evaluators), the investors receive their money back with interest. However, the government doesn’t have to pay out more than it saves.

By Adrienne Lu, Staff Writer

Full Story: http://www.pewstates.org/projects/stateline/headlines/results-based-financing-for-preschool-catching-on-85899542394

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