Social Impact Bonds for Dummies
We've been hearing about Social Impact Bonds, or "Pay for Success" programs for a few years now, but only recently have they entered the world of public education. Chicago, for example, launched one $17 million program last year for Pre-K, and last month Utah's United Way was happy to announce that Goldman-Sachs' Pay for Success program in Utah had yielded dividends.
The spread of Social Impact Bonds to the education sector raises all sorts of questions like "How are the fiduciary interests of a private investment firm balanced against social demands of education" or "What overseeing groups can best evaluate programs with a balanced view toward all involved interests."
Or, "What the hell is a social impact bond?"
On the ground, it looks kind of ridiculous, like a program that pays a Wall Street firm a bonus every time a kid is taken off of special ed rolls.
But how does that even work? How does the Wall Street firm get paid? With what money? How do you make money on an investment in something that creates no profit?
An Oversimplified Example
Here's the basic structure of a Social Impact Bond. Note: I am not an economist, banker, or CURMUDGUCATION: Social Impact Bonds for Dummies:
NEA's Lily Eskelsen GarcÃa on What Teachers Do
Lord knows I can be as critical of some of Lily Eskelsen Garcia's choices as NEA president as anyone around, but the woman can speak. Here's a quick three minutes on what teachers need and what teachers do. It's worth a view.
http://curmudgucation.blogspot.com/2015/11/neas-lily-eskelsen-garcia-on-what.html
