We’re throwing back and looking forward.
In 2013, we blogged about how social impact blogs could be used to finance early education, explaining:
“Preschools and investment banks seem to be worlds apart, but this month Goldman Sachs announced that it would use a ‘social impact bond,’ to invest in high-quality early childhood programs in Utah and serve some 3,500 children.
“Piloted in the United Kingdom in 2010, social impact bonds loan private money to effective public programs.
“In Utah, Goldman Sachs is working with Chicago investor J.B. Pritzker and the United Way of Salt Lake to offer $7 million in loans to pay for the expansion of preschool programs that enroll at-risk children.”
Now in 2015, we’re adding this update: a white paper from the Save the Children Action Network called, “Innovative Financing for Early Childhood Education:
State and Local Options.”
The white paper “lists a toolbox of solutions aimed at bridging the gap between lawmakers’ desire to expand access to early childhood education and balance the budget. Offering ideas that appeal to Republicans and Democrats alike, Save the Children Action Network’s report gives lawmakers a variety of options for smart and innovative ways to fund the early learning programs that ensure the future success of our children and country.”
Among these solutions: social impact bonds. The white paper explains:
“Different legislative avenues have been taken on social impact bond (SIB) initiatives, but most action has been taken through state legislatures. Seven states (California, Connecticut, Maryland, Rhode Island, Texas, Utah, and Washington) have considered bills on SIBs in their legislatures. In Massachusetts, Oklahoma, and Utah, the state legislatures passed legislation on SIBs that the governors then signed into law.”
“Massachusetts became the first state to enact a social finance program in 2012 when then Governor Deval Patrick (D) announced Social Innovation Financing initiatives targeting juvenile justice and chronic homelessness.”
To learn more about different financing options for early education, read the white paper.