Minnesota bill uses investors to fund social services
A new Minnesota bill will fund social services through private investors, according to The Associated Press.
The proposal came from Republican Senator Julie Rosen and Representative Keith Downey. Minnesota Public Radio reported that the bill suggests selling appropriation bonds to investors. The proceeds from sold bonds would then go toward human services nonprofits.
Money from the $15 to $20 million investment pool would be used, in part, to finance job training initiatives. The return of unemployed individuals to the job market cold lead to increased tax revenue.
In order to prove that the funding is financially worthwhile, Downey told the news source that documenting savings would be important if the legislation is passed, and many social services are already recording their results.
"Large nonprofits and the foundations in Minnesota are quite a bit ahead of us here in the public sector," he said. "They have been working on return on investment models, and how to identify for them where the best bang for the buck is through their grant program. So I think we've got a lot to learn."
Individuals who are seeking a Masters Degree in Social Work may be interested in such changes to social services across the country.
POSTED BY: ec_admin - March 12th, 2011 at 03:52pm ( 0 )