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Politics & Government

Michigan is the latest state to try experimental social impact bonds

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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.

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