Testimony Social Impact Bonds
Testimony before the Committee of the Whole Council of the District of Columbia
Kelly Walsh, John Roman
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Social impact bonds (SIBs) inject private-sector capital into public-sector activities for improved outcomes and innovation. Private investors fund interventions that are uncomfortably risky or expensive for the public sector. If established performance targets are met, investors are rewarded with the profits. Otherwise, the government does not pay for the services delivered. In the SIB model everybody may win: investors leverage resources for potential profit and provide a socially beneficial investment, while the government gets private-sector investment for a new intervention. We believe that Bill B20-125 is insufficient to support SIBs in the District of Columbia.
Research Areas Economic mobility and inequality Social safety net Taxes and budgets
Tags Fiscal policy State programs, budgets State and local tax issues Pay for success
Policy Centers Income and Benefits Policy Center