INTRODUCTIONS AND OVERVIEW 1 Examine the range of financing strategies that can support the implementation of Evidence2Success Identify strategies that hold the greatest potential in the local context ID: 736822
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Overview of Finance StrategiesSlide2
INTRODUCTIONS AND OVERVIEW
1Slide3
Examine the range of financing strategies that can support the implementation of Evidence2SuccessIdentify strategies that hold the greatest potential in the local contextIdentify additional information needed to make decisions about financing strategies
Define next steps
2
Objectives for This MeetingSlide4
Developing a Strategic Financing Plan
What are your financing goals?
What financial resources do you need to implement those goals?
What resources do you have?
What financing strategies will you implement?
Review priority programs and scale
Cost estimates: programs and infrastructure
Oversee development of fund map information
Finance strategies and allocation of grant
Meeting 2
Meeting 2
Meeting 3
Meetings 4, 5Slide5
4
Meeting 3: Overview of range of financing strategies and focus on improving the use of existing public fundsMeeting 4 (TODAY): Review full range of financing strategies and identify strategies of interest
Meeting 5: Prioritize finance strategies and agree on recommendation for allocation of grant dollarsMeeting 6: Revise strategies according to community board input and develop work planStrategic Finance Planning Process
Community Board ReviewSlide6
5
Total Three Year Costs and Funding Gaps
Year 1
Year 2Year 3Program 1Total CostsProgram 2
Total CostsProgram 3Total CostsInfrastructureTotal CostsTOTAL COSTS
SECURED
FUNDING
FUNDING GAPSSlide7
Financing strategies
6Slide8
Overview of Financing Strategies
Improving the use of existing public funds
Maximizing federal fundsAllocating state or local general fundsPublic-private partnerships
Social impact bondsDebt financingGenerating new revenueSlide9
Selecting and Sequencing Financing Strategies
Considerations when selecting financing strategies:Source of short or long-term support?How much revenue will the strategy generate?What programs, populations and infrastructure functions can the financing strategy support?
What will it take to generate revenue? Time? Champions? Sequencing considerations:Grant funds often used as startup for partnership effortsImportant to work toward long-term sources of support/institutionalization Slide10
Our Discussion TodayProvide information on financing strategies
Overview informationWhat does it take? What does it yield?Example of strategy
DiscussionWhat do we know about the viability of this strategy in your local context?What additional information do we need? Slide11
1. Improving the Use of Existing Public FundsReviewed fund-mapping data to identify opportunities
Summary of opportunities identifiedSlide12
2. Maximizing Federal Funds
Approaches include:
Maximizing entitlements: Medicaid, Title IV-EDirecting formula and block grants: CDBG, CCDF, Title I, Title IV-B, TANF, OJJDP, Title V, PREP, SABG, MHBG, WIOAApplying for discretionary grantsSlide13
2. Maximizing Federal Funds Slide14
2. Maximizing Federal Funds Slide15
Oklahoma Department of Human Services Performance Partnership Pilot
Assist youth in foster care in completing educational requirements for high school graduation, postsecondary education and employment
Career Academies, Communities in Schools and Check & Connect
Braiding funds from:Workforce Innovation and Opportunity Act Title I Now Is the Time Healthy Transitions Carl D. Perkins Career and Technical Education Act AmeriCorps Chafee Education and Training VouchersSlide16
3. Allocating State or Local General Funds
Approaches include:Earmarks and set-asides
State and local legislative funding allocations for programs and infrastructureIncentivizing tested, effective (evidence-based) programs in funding formulas and grant applicationsSlide17
3. Allocating State or Local General FundsSlide18
Pennsylvania Research-Based Practice Initiative
Housed within the Pennsylvania Commission on Crime and DelinquencyTwenty-year history of using state allocations and federal block grants to fund evidence-based programs and state infrastructure
High point in funding was 2001–2002: $22 million in state funds plus significant federal OJJDPWith economic crash, total funds dropped below $2 million in 2008–2010Since 2010, allocations are slowing come back.
Now have good evidence that investments workedIn 2013, the governor announced closing of secure facility and reinvestment of $10 million in savings in evidence-based programs.Slide19
4. Public-Private PartnershipsCollaborations among public agencies, private investors, foundations, businesses and private organizations
Can fill investment gaps where no public funds are easily identifiable, including:Development of new program models
Startup and transition costsTechnical assistanceBuilding public willSlide20
4. Public-Private PartnershipsSlide21
Interact for Health School-Based Partnerships
Interact for Health (Health Foundation of Greater Cincinnati) began partnering with schools to bring school-based health centers to community learning model.
2010: City of Cincinnati cut support for school nurses as part of budget cuts.Interact for Health convened public-private coalition — now 18 school-based health centers.Identified sustainable funding model for school-based health centers.
Interact for Health provides startup and planning funds. Other private and public funding partners provide early implementation support. Medicaid billing for ongoing support.Related grants included four-year grants to schools for school-based evidence-based prevention programming. Slide22
5. Social Impact Bonds and 6. Debt Financing
Social Impact Bonds
Contract between a private investor and public agency: Investor agrees to pay for improved social outcomes.If outcomes improve, investor gets paid back, potentially with a return. If outcomes don’t improve, investor loses funds.Debt Financing
Low or no-cost loans (typically with favorable term lengths and below-market rates).Approaches include municipal bonds and program-related investments.Slide23
6. Social Impact BondsSlide24
South Carolina Social Impact Bond to Support Nurse-Family Partnership
$30 million committed to expand Nurse-Family Partnership in South Carolina$17 million from private Investors: BlueCross BlueShield Foundation ($3.5 million), the Duke Endowment ($8 million), the Boeing Company ($800,000), Greenville County, S.C. First Steps ($700,000), Laura and John Arnold Foundation ($491,000), consortium of private funders ($4 million)
$13 million from MedicaidIf results achieved, $7.5 million in success payments will be invested back into the program to sustain services.Slide25
7. Generating New Revenue
Raise new funds or set aside funding for specific populations or servicesPrivate fundraising through events and sponsorships, donor development, product sales, online fundraising
Dedicated revenue approaches:Special taxing districts: FloridaSpecial tax levy: Seattle Families and Education Levy
Prevention-focused taxes and fees (sin taxes): Maryland alcohol tax Targeted tax credits: Missouri Youth Opportunity Tax Credit ProgramSlide26
7. Dedicated Local Revenue StrategiesSlide27
Missouri Youth Opportunity Tax CreditDepartment of Economic Development administers tax credits to approved organizations administering positive youth development or crime prevention projects
Organizations secure contributions from their community, and the contributor receives tax credits for those contributions.
50-percent tax credits for monetary contributions and wages paid to youth in an approved internship, apprenticeship or employment project30-percent tax credits for property or equipment contributions used specifically for the project.Slide28
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Next meetingReview additional information on financing strategies based on today’s discussionPrioritize finance strategies and agree on recommendation for allocating grant dollars
COMMUNITY BOARD REVIEWFinal meetingDevelop work plan
Next Steps Slide29