SIB and their core concept of "pay-for-performance" have generated considerable interest in the United States. Recently, some states have begun to take concrete steps to investigate the possibility of implementing comprehensive pay-for-performance financing programs. In this webinar, two first-mover states that are taking different approaches to pay-for-performance financing, Massachusetts and Minnesota, discuss: (i) what factors led them to take their respective approaches, (ii) what their approaches involve, (iii) the current status of their efforts and (iv) what they hope to accomplish. 

Massachusetts' Request for Information (RFI): In issuing its Request for Information to explore 'Social Innovation Financing,' Massachusetts is the first state to take formal steps towards a comprehensive social innovation financing program that includes social impact bonds or pay-for-success contracts in response to President Obama's Pay for Success initiative launched earlier this year.

Minnesota's 'Human Capital Performance Bond': The Minnesota House and Senate recently passed a State Government Bill that contains a provision for a $20 million pilot for 'human capital performance bonds.' Under this provision in the bill, the bonds would be issued in the municipal bond market by Minnesota, under the bonding authority of the State. Bond proceeds would provide a pool of capital that would be used to support pay-for-performance based programs delivered by pre-qualified service providers. Minnesota's human capital performance bond legislation is based on Twin Cities Rise!, a successful, 13-year pay-for-performance contracting program in the State. This is the first approach to consider issuing bonds in the capital markets for the sole purpose of supporting pay-for-performance programs. 

Panelists

• Greg Mennis: Assistant Secretary for Finance and Infrastructure, Massachusetts Executive Office for Administration and Finance
• Steve Rothschild: Founder and President of Invest in Outcomes (IIO). IIO is a nonprofit piloting a "Human Capital Performance Bond"