SACRAMENTO (April 14, 2016) – The Board of State and Community awarded three grants totaling $4.75 million for a pilot project that pays service providers when they successfully achieve recidivism-reduction goals. The Pay for Success projects are made possible by Assembly Bill 1837 (Atkins, Chapter 802, Stats. 2014). The program, which also is known as Social Innovation Financing, requires investors, local government agencies and service providers to agree on outcome goals for programs that reduce recidivism. Repayment on the private investment is based on reaching those targets. At its meeting today in Sacramento the Board awarded $2 million to Los Angeles County for a program designed to reduce recidivism and end homelessness for frequently incarcerated offenders. Ventura County receives $1.5 million for a program that will focus on reducing recidivism among 400 medium-to-high risk adult probationers. Alameda County receives $1.25 million for a peer-based program that will engage first-time recidivists by addressing chronic unemployment, substance abuse, housing, and mental and physical health. Counties are required to provide a 100 percent funding match. Additional funding from private investors or philanthropic organizations will pay operating costs of the program, including for service providers. If targeted outcomes are achieved, those investors earn a return on their money that is paid for with the grant funds. Local government agencies and project partners will enter into a multi-year contract that defines outcomes, evaluation methods and repayment terms based on achieving desired goals. An independent evaluator will determine whether the goals are met. According to the legislation, the grants are to encourage innovation in addressing intractable societal problems: “Social innovation financing and the use of performance-based contracting can serve as an effective tool for addressing social and community development challenges where private sector innovations may be useful and multiple approaches may be appropriate.” The initial project will run from June 1, 2016 to December 31, 2021. In July the BSCC held three statewide workshops to provide information about Pay for Success. Seventy-seven people from 34 organizations and agencies requested follow-up and additional resources. The BSCC is a multi-faceted organization that provides assistance to the counties on community corrections issues. The agency annually administers and awards millions of dollars in grants designed to reduce recidivism, sets standards for the training of local corrections officers and the operations of local corrections facilities, and administers the current lease-revenue bond process for local jail improvements. For more information please contact Tracie Cone at tracie.cone@bscc.ca.gov or 916-322-1054 A summary of the proposals is below: PAY FOR SUCCESS GRANT PROJECT PROPOSAL SUMMARIES Los Angeles ($2,000,000) The LA County’s Pay for Success Project is aimed at reducing recidivism and ending homelessness for frequently incarcerated inmates with histories of homelessness. The project will focus on the end-to-end provision of holistic, supportive jail in-reach services and post-release permanent housing interventions for 300 homeless LA County male inmates who have frequent contact with the criminal justice system and complex physical and behavioral health conditions. The project brings together the LA County Department of Health, LA County Sheriff’s Department, LA County Chief Executive Office, Corporation for Supportive Housing, Third Sector Capital Partners, and numerous community based housing and service providers. The intervention consists of two linked components: pre-release in-reach supportive services and immediate interim/permanent supportive housing upon release from jail. The Department of Health Services will provide oversight of the jail in-reach services that will be delivered by intensive case management service providers under contract with their department. The Housing for Health Division will provide oversight of the community-based contracts for housing and support services for participants post release. The budget for the LA County’s Pay for Success Project is estimated at $23,420,616. Ventura ($1,500,000) The Ventura County’s Pay for Success Project will focus on reducing the number of rearrests among 400 Ventura County medium-to-high risk adult probationers. The program model offers an integrated community-based set of evidence-based practices targeting the specific criminogenic factors most related to recidivism. The project has a public-private partnership that leverages and coordinates the expertise and resources of the County Executive Office, Probation Department, Public Defenders Office, Interface Children and Family Services, Social Finance, and investors. The intervention model used, Core 4 Success, is a community-based case management approach. A customized suite of re-entry evidence-based practices are to be customized for each individual participant that could include: re-entry case management, Moral Reconation Therapy, parenting and reunification services, trauma treatment and job readiness skills. The budget for the Ventura County’s Pay for Success Project is estimated at $2,740,782. Alameda ($1,250,000) The Alameda County’s Pay for Success Project is designed to engage first time PC1170(h) recidivists through peer-based interventions that addresses: 1) chronic unemployment and poverty; 2) substance abuse; 3) access to a variety of supports such as subsidized housing, mental and physical health care and education; 4) lack of positive peer relationships and role models; and 5) criminogenic thinking. Services will include pre-and post-release outreach engagement efforts to ensure participant “buy-in”. Once engaged in the program, 945 participants will receive services from a cross-trained peer-based service team that will deliver “24/7” wraparound services and counselors who will provide access to substance use disorder treatment, employment training, adult education, mental health services, intensive case management and housing assistance. The project is collaborating with the County Administrator’s Office, District Attorney’s Office, Sheriff’s Office, Probation Department, Health Care Services, Behavioral Health Care Services, Public Defender’s Office, Social Services and numerous community-based providers. The budget for the Alameda County’s Pay for Success Project is estimated at $10,760,539.