Michigan is the latest state to try experimental social impact bonds
Michigan plans to enlist private investors to finance public social programs, becoming the latest state government to try an experimental "pay-for-success" approach in tackling persistent problems such as homelessness or recidivism.
Also known as pay-for-success contracts, social impact bonds let private investors put up money for a program with a specific goal.
If the goal is achieved, the government pays back the investors, with a profit. If not, the government pays nothing.
Chris Gautz, Capitol correspondent for Crain's Detroit Business, joined us today to talk about these bonds.
Listen to the full interview above.