|SOCIAL IMPACT BONDS||
JUVENILE DETENTION (USA)
A SiB was launched in New York State to focus on reducing the juvenile detention rates for 16-18 year olds at Riker's Island prison in New York State. Each year, 3,400 young offenders will receive counseling, training and education. MDRC (Manpower Demonstration Research Corporation, a non profit social and education research policy institute) provided the service, under the ABLE programme (Adolescent Behavioural Learning Experience).
MDRC must reduce recidivism by at least 10%. If reduction is less than 10%, New York State does not make repayments. If, on the other hand, the reduction is greater than 10%, the State pays out approximately half of its cost savings, due to the reduction in recidivism.
It is a four-year SiB, funded by $9.6m of capital from Goldman Sachs, $7.2m of which is secured by Bloomberg Capital.