Massachusetts Juvenile Justice PFS Initiative
SIB Details
| Location | United States, Massachusetts |
| Commencement date | Jan 2014 |
| Savings area | Recidivism, employment |
| Bond Amount | US$27m |
| Bond terms (years) | 7 years |
Intervention Program
| Program description | Intensive street outreach and targeted life skills, education, and employment programming aimed to reduce recidivism and increase employment. |
| Treatment duration | 2 years plus 2 follow up for participants. |
| Target population | At-risk young men (17-23yo) in the Boston, Chelsea and Springfield areas who are in the probation system or exiting the juvenile justice system. |
| Intervention cohort | 929 individuals from target population. |
Outcome Measurement
| Metric | Days in prison Participation in job readiness program/quarter Employment/quarter. |
| Counterfactual | Compared with similar aged young men not in the program. |
| Outcome Calculation and Target | % reduction in days in incarceration and increase in employment Target: 40% decrease in days of incarceration. Payments: $750/participant/qtr employed + $789/participant/qtr in work ready program$27m if 70% decrease in incarceration $26m if 55% decrease in $22m if 40% decrease |
Contracting parties
| Government Agency | Commonwealth of Massacheusetts |
| Service Provider | Roca |
| Intermediary | Third Sector Capital Partners |
| Evaluator | Public Consulting Group |
Investor details
| Investors | Financed using loans and grants. Goldman Sachs $9m loan; Kresge Foundation and Living Cities $1.5m loans. $6m in grants. |
| Returns | Goldman Sachs will earn 5%pa regardless of outcomes. Kresge Foundation and Living Cities will earn a targeted 2%pa. |
| Capital protection | Nil |
Useful links
Download the Massachusetts Juvenile Justice PFS Initiative fact sheet (External link to Goldman Sachs, PDF, 445KB)
