Friday, February 3, 2012

Pay for Success Bonds

Yes we are broke and yes we keep printing the dollar bill.  What is good for Europe is now good for the US of A.  I like success and why not do the "right thing" just because it is the right thing.
I got a call this morning from a company that was going for a federal grant to put teachers into companies for a month to learn the clean energy business and would pay said teachers $800.00, a pittance I was told.  I asked what the company would gain as profit margins are really down and time is also a consideration. Nothing I was told except possibly future employees.

To keep the conversation short,  informed this person on the other end of the phone that years long ago, the teacher was the shop owner and the benefits were for the student and the company as they would pay lower wage to the student while he was drinking up the knowledge and learning the craft.  It is now backwards, lets cut out the middle man and have the school teacher considerate his efforts on teaching the math and language skills it takes to KEEP a job.  We also need to find ways to cut the budget of the country and stop adding programs, even when the programs look great, we do have alternatives. 

I think for now, as in the past 66 years, we will continue to teach and educate those who will benefit from age and experience and who want to learn a trade from the licensed craftsman.  Save the money and the extension of federal programs, I'd rather do it myself!

 another story
The Obama administration is now making available funding for states and cities that wish to try out the concept. The Department of Labor will release up to $20 million and the Department of Justice will also release funds through its Second Chance program. Even though the total amount of federal funding is unlikely to be near the $100 million originally proposed, the sums are still significant and will help states and cities that are considering embarking on pay-for-success approaches.
Meanwhile, in Massachusetts Gov. Patrick said it would like to focus the first pay-for-success bond projects on chronic homelessness and supporting youth exiting the juvenile-justice system. In both of these areas, success can lead to significant savings for government. How? By reducing homelessness, saving on Medicare, and cutting state-funded housing costs.
Gov. Patrick’s administration also sent legislative language to appropriators in Boston to allow pay-for-success approaches to take root. Most importantly, this language ensures that when the state makes a commitment to an external provider it will release funds when an outcome is achieved. This commitment is backed by the full faith and credit of the state. It also ensures that government agencies put money aside as they go along rather than plan to appropriate the funds in the year when the money is released.

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