Pat Quinn brought Social Impact Bonds to Illinois.
Special education advocate Bev Johns has written here warning about the impact of Social Impact Bonds on special education services.
What are Social Impact Bonds (SIBs)?
They have become a favorite privatization tool of corporate Democrats and others.
Wall Street loves them.
Also known as Pay for Success programs in which Wall Street investors, often using funding from private philanthropies, invest in social programs which once were funded directly by the government. The aim is to reduce government costs by offering profits to Wall Street.
And Wall Street gets a pretty good return on that investment.
When the first cohort of students enters kindergarten, CPS will begin paying the lenders for each fewer child who needs special education services when compared to the control group. CPS will pay $9,100 per child annually, an amount that increases by 1 percent each year.
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