Gov. John Carney, on Aug. 8, signed Senate Bill 242, allowing state government to enter into Pay for Success contracts that will incentivize private funding of economic development and social impact initiatives.
Under terms of the contracts, the state would protect taxpayer dollars by reimbursing private funding only if the initiatives reach stated goals and achieve progress for Delawareans.
Carney signed the legislation — sponsored by Sen. Jack Walsh and Rep. Kim Williams — at the Newark office of the Blood Bank of Delmarva. The Blood Bank is working with the Longwood Foundation, Discover Bank and the Delaware Community Foundation on a Pay for Success initiative to increase blood donations across the state.
“Pay for Success contracts will provide the State of Delaware with another tool to create jobs, improve the quality of services provided to Delawareans and to ensure that we’re investing taxpayer dollars wisely,” said Carney. “Taxpayers expect us to take care of their money and invest in initiatives that demonstrate clear results. That’s the intent behind this new law, and I want to thank Rep. Kim Williams and Sen. Jack Walsh for their leadership and their partnership on this important issue.”
“Government has to be both fiscally and socially responsible,” said Walsh. “Pay For Success gives us the best of both worlds by protecting the state’s investments without sacrificing our ambitions for economic and social progress. This is exactly the kind of innovation that Delaware needs in an environment where our challenges often grow faster than our resources. I’m grateful to all of my colleagues who helped me pass this bill, including Rep. Kim Williams, Lori Palmer and Bryan Tracy and to Gov. Carney for bringing us across the finish line.”
“We have an opportunity through the Pay for Success program to incentivize private development in a smart, responsible way,” said Williams. “By entering into Pay for Success contracts with companies, we can leverage government funds with little risk: if the company succeeds and meets its goals, they will reap the financial benefits, while Delaware will reap the benefits of jobs, improved services and more stable businesses throughout our state. I’m excited to see this program get off the ground and start producing positive results.”
For more on SB 242, visit bit.ly/2MwiRzN.