Massachusetts Launches Landmark Initiative to Reduce Recidivism Among At-Risk Youth
$27 Million Initiative Is Largest Financial Investment in a Pay for Success Contract in the Country
Former Massachusetts Governor Deval Patrick announced the launch of the nation’s largest financial investment in a PFS initiative, which is designed to improve outcomes for hundreds of at-risk young men in the probation system or leaving the juvenile justice system. The Massachusetts Juvenile Justice Pay for Success Initiative will not only improve the lives of young people, but also reduce crime, promote safer and stronger communities and save taxpayer dollars.
Pay for Success (PFS) contracts, also called Social Impact Bonds, combine nonprofit expertise, private sector funding, and rigorous evaluation to transform the way government and society respond to chronic social problems. In a PFS initiative, funders assume up front financial risk, and taxpayers pay for a program only if a third-party evaluator determines that the initiative has achieved specific outcomes that create benefits to society and generate savings for government.