Make this page my home page
  1. Drag the home icon in this panel and drop it onto the "house icon" in the tool bar for the browser

  2. Select "Yes" from the popup window and you're done!

Correctional Management Resources

Featured Product Categories

Featured Corrections Product

Most Popular Articles

Correctional Management Article


Print Comment RSS Bookmark


Goldman Sachs to invest in NYC jail program

Goldman Sachs will invest almost $10 million in a New York City jail program that will allow the investment firm to profit if it can reduce recidivism rates

The Associated Press

NEW YORK — Goldman Sachs will invest almost $10 million in a New York City jail program that will allow the investment firm to profit if it can reduce recidivism rates, city officials announced Thursday.

The move makes New York the first city in the nation to test "social impact bonds" that enlist private entities in an effort to save governments money over the long term.

Under the Goldman Sachs-funded initiative, inmates aged 16 to 18 will receive education, training and counseling intended to reduce the likelihood of them reoffending after their release.

"New York City is continually seeking innovative new ways to tackle the most entrenched problems, and helping young people who land in jail stay out of trouble when they return home is one of the most difficult _ and important _ challenges we face," Mayor Michael Bloomberg said. "As the first city in the nation to launch a social impact bond, we are taking our efforts to new levels and we are eager to see the outcome of this groundbreaking initiative."

Goldman CEO Lloyd Blankfein added, "We believe this investment paves the way for a new type of instrument that enables the public sector to leverage upfront funding from the private sector."

City officials said Goldman would provide a $9.6 million loan to pay for the program at the Rikers Island jail complex. If recidivism drops by 10 percent, the firm will get back the $9.6 million. If it drops even more, Goldman could make as much as $2.1 million in profit. If recidivism doesn't drop by at least 10 percent, Goldman will lose as much as $2.4 million.

Nearly half of the adolescents who leave city jails currently return within one year.

Social impact bonds, also called pay-for-success bonds, were first used in Britain and are being explored in Australia and in the U.S.

Massachusetts is negotiating with two nonprofit groups to finance juvenile justice and homelessness programs with the promise of repayment only if the programs work.

Associated PressCopyright 2015 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 



CorrectionsOne comments can only be accessed by verified correctional officers.
Please sign in or register to view or write your own comments below.
Most Commented Articles
1. Ariz. correctional officer raped by inmateCorrections Article Comments18
2. Deadly Nev. prison brawl stokes mystery about guards, guns Corrections Article Comments14
3. Rikers correctional officer speaks out over sexual assaultCorrections Article Comments13
4. Attorney: Accused killer cried after deadly attack on correctional officerCorrections Article Comments12
5. What's your favorite correctional slang phrase?Corrections Article Comments12
6. Correctional officers charged with looting convenience store during unrestCorrections Article Comments11
7. Judge won't delay order on inmate sex reassignment surgery Corrections Article Comments11
8. Wis. DOC may eliminate tower staffing to save moneyCorrections Article Comments9
9. Audit says overtime abused by Corrections Department workersCorrections Article Comments7
10. Ohio correctional officer killer seeks to have conviction overturnedCorrections Article Comments7

Back to previous page