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Patrick Administration Awarded $11.67 Million U.S Department of Labor 'Pay for Success' Grant

Press Release

Location: Boston, MA

Governor Deval Patrick today announced that Massachusetts has been awarded an $11.67 million grant from the Obama Administration's U.S. Department of Labor that will expand the Patrick Administration's Social Innovation Financing juvenile justice project by providing additional success payments tied to increases in employment and reductions in recidivism.

"Social innovation financing is helping us shape our future by creating innovative tools to tackle long term social issues," said Governor Patrick. "I thank the Obama Administration for recognizing the potential social innovation financing has to help us change the delivery of state services to save money and improve program performance. This grant will help create brighter futures for some of our most vulnerable youth."

"This grant will allow the Commonwealth to expand the scope of our Social Innovation Financing juvenile justice project aimed at helping to put at-risk youth on a path to success," said Secretary of Administration and Finance Glen Shor. "Through this innovative, results-oriented project, we can achieve better outcomes while stretching every taxpayer dollar as far as possible."

"All youth deserve a promising future," said Secretary of Labor and Workforce Development Joanne F. Goldstein. "We thank the Department of Labor for these resources as we work together with partnering organizations and vulnerable communities to promote employment opportunities for some of our most high-risk youth."

Through competitive procurements, the Commonwealth has preliminarily selected Roca as the service provider and Third Sector Capital Partners as the project intermediary for the juvenile justice initiative. Roca's nation-leading intervention model has been successfully helping the most high-risk young people break the destructive cycles of poverty, violence and perpetual incarceration. Third Sector Capital Partners is a nonprofit organization that delivers strategic financial solutions in support of evidence-based programs that serve the nation's most vulnerable communities.

In January of 2012, the Patrick Administration announced its plan to allow Massachusetts to enter into "pay for success" contracts designed to encourage innovative solutions to social problems, improve the performance of government and save taxpayer money. In August of 2012, the Administration announced it had taken the next step toward finalizing these agreements by announcing apparent successful bidders for pay for success contracts to address juvenile justice and chronic homelessness.

The Administration is partnering with Roca and Third Sector Capital Partners to support youth aging out of the juvenile justice and probation systems so as to assist them in making successful transitions to adulthood. This contract will be designed with the specific goal of reducing recidivism and improving education and employment outcomes over several years for a significant segment of the more than 750 youth who exit the juvenile justice system, and the several thousand who exit the probation system annually. The U.S Department of Labor Grant will allow the Commonwealth to expand the scope of this project to serve nearly 400 additional at-risk youth.

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