Gov. John Carney has signed Senate Bill 242, which allows state government to enter into Pay for Success contracts.
The contracts provide incentives for 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 goals, and achieve progress for Delawareans, a release from the governor’s office stated.
Carney signed the legislation at the headquarters of the Blood Bank of Delmarva near Christiana Hospital.
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.
“As a recent pay-for-success partnership grant recipient, we can see how beneficial this unique arrangement is for Delaware,” saidMichele Hart-Henry, Vice President and Chief Operating Officer of the Blood Bank of Delmarva. “The Blood Bank of Delmarva will be expanding our operations while having both the expectation and the support to be accountable for our results.”
“Discover Bank believes in making strategic investments that help build stronger communities,” saidJames Roszkowski, president of Discover Bank. “We are thrilled to be an early investor of the Blood Bank of Delmarva Pay for Success model, along with the Delaware Community Foundation and the Longwood Foundation. We believe the investment will yield measurable results for our community and look forward to future projects that are now possible under Senate Bill 242.”
“Pay for Success gives Delaware the opportunity to create thousands of new jobs and grow the local economy with scalable enterprises without risking tax dollars,” said Bryan Tracy, CEO of White Dog Labs, a New Castle-based biotech firm. “The incentives provided through this new investment vehicle reward the private sector after new jobs have been created, and provided new revenue to the state – it pays only for success. This is a win-win for companies, local government and the state to work together and make Delaware more prosperous for all.”