Subject: Manitoba News Release: Province Announces Request for Proposals for Social Impact Bonds

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1 Sheree Capar From: Sent: To: Subject: Sheree Capar July :42 PM Sheree Capar FW: Manitoba News Release: Province Announces Request for Proposals for Social Impact Bonds From: News Media Services mb. ca> Reply-To; gov. mb. ca" Bov. mb. ca> Date: Tuesday, July 4, 2017 at 11:44 AM To: David Jacks Subject: Manitoba News Release: Province Announces Request for Proposals for Social Impact Bonds ManUoba^^ NewsRelease PROVINCE ANNOUNCES REQUEST FOR PROPOSALS FOR SOCIAL IMPACT BONDS July 4, 2017 The Manitoba government has taken a major step to launch its first social impact bond (SIB) by posting a request for proposals for a consultant to help create an innovative, made-in-manitoba approach to fund social programs, Families Minister Scott Fielding announced today. "As a partner in caring, our government is creating a new channel for philanthropy we hope will help solve costly, complex social issues and benefit the broader community, " said Fielding. "Social impact bonds are a new tool to, i«vy /v ir tap into Manitoba's potential to find creative solutions and foster new business, social and community partnerships. "I want to be very clear. This is about building on current social service programming. SIBs will support and work alongside current programs, but do not replace them. They are one tool in the toolbox." Social impact bonds encourage the private sector and community groups to partner with government to deliver prevention programs designed by experts and front-line service organizations. The government sets a specific outcome to

2 achieve in collaboration with service providers, secures private investment and repays investors only if the sen/ice provider meets the project's outcome. SIBs find a way to use private capital for the public good, " said Jeff Wharton, chair of the province's Social Impact Bond Committee. "While traditional government programs may be funded regardless of whether they are working, SIBs would only receive tax dollars based on success. This type of innovation will give Manitobans better value for their money and provides an efficient addition to current funding, not a replacement." Wharton noted hundreds ofsib initiatives are underway around the world but are still emerging in Canada. One partnership in Saskatchewan created a support home for single mothers and is expected to save that province up to $1. 5 million over five years by reducing the number of children in government care. In Manitoba, mandate letters in the departments of Families and Justice directed ministers to find new ways to reduce the number of children in care and rate of re-offenders in the criminal justice system. The province is now requesting proposals from qualified professional consultants to provide expertise and mediation between the government, social service providers and investors. The consultant would recommend an innovative proposal for a landmark SIB, develop a contract with outcome targets and evaluation criteria, develop a framework for future proposals and help build government ability to manage projects. The participation of Indigenous businesses is encouraged. The RFP will be posted online at www. merx. com/manitobahousina with a 30- day deadline for applicants Ptease be advised that this account is not monitored for inquiries or follow-up questions. You can also follow us www. twitter. com/mbqovnews. Ce compte de couri-iel n 'est pas surveille et vous ne recevrez pas de reponse a vos demandes d'information ou questions. Vous pouvez aussi nous suivre au www. twitter. com/mbaovnews Click here to manage your subscriptions

3 CUPE News Release Canadian Union of Public Employees - cupe. mb. ca For immediate release July 4, 2017 Social Impact Bonds wrong direction for Manitoba's social services - CUPE WINNIPEG - Today the Manitoba government announced the opening of a request for proposals for Social Impact Bonds, a scheme in which private companies profit off social service delivery. There was a time when the private sector would simply make philanthropic donations as part of their corporate responsibility to the community" says Terry Egan, President of CUPE Manitoba. "Social Impact Bonds take that corporate philanthropy and turn it into a private money-making scheme". While Pallister claims that Social Impact Bonds would foster "private-sector innovation, " these companies will seek to invest in only the non-government agencies that would see profitable outcomes, rather than programs that seek to address long-term root causes of many of societies deep and complex issues, including poverty. "Social Impact Bonds are like P3s, for social services. We have the in-house expertise we need to deliver social services right here in Manitoba, " said Egan. "There's no need to outsource the financing, planning and evaluation of social programs to consultants and corporations". The Canadian Union of Public Employees is Canada's largest union representing more than 643, 000 members. In Manitoba, CUPE represents approximately 26, 000 members working in health care facilities, personal care homes, school divisions, municipal services, social services, child care centres, public utilities, libraries and family emergency services For more info, contact: David Jacks, CUPE Communications at (204) DJ/dUcope 491 MANITOBA REGIONAL OFFICE Broadway, Winnipeg, MB, R3C 4M6 Phone: (204) Fax; (204)

4 Economics 101: Decoding Social Impact Bonds Canadian Union of Public Employees Page 1 of 3 AT WORK- Economics 101: Decoding Social Impact Bonds Mar 23, 2017 Social Impact Bonds (SIBs) are a newer form of privatization allowing private investors to profit froni.^^w^":^^'4-^ma Sidaf ^.tiw, _-^-R^A.. ^^^ PRlVAilZATlU^T So: t'nl "t'n, aito«;^ '. *.. '»,lff^wfmw^,^^m^'j'w*^ '". * ^-s. -. iti. ^... il,..'. f;t-^ social services under the guise of "impact investing. " Investment firms provide up-front money for social programs. If particular outcoines are met, the government pays back the investor - with a profit. They're like public-private partnerships (P3s) for social programs. This model outsources the financing, planning and evaluation of social programs to consultants and corporations. Multiple consultants, earning hefty payments, ca/economics-l 01 -decoding-social-impact-bonds 13/07/2017

5 Economics 101: Decoding Social Impact Bonds Canadian Union of Public Employees Page 2 of 3 negotiate the SIB contract, inanage the project and evaluate the outcomes. SIBs, also known as Pay for Success Bonds or Social Benefit Bonds, have been used in programs for hoineless people and to rehabilitate convicted people, as well as for early childhood education and care. Originally from the United Kingdom, SIBs now exist in the United States, Australia and Canada. SIBs are in place in Saskatchewan and federally, and Ontario is considering two projects. The federal Public Health Agency of Canada has just launched a SIB aimed at reducing high blood pressure among seniors that will be delivered through the Heart and Stroke Foundation. It will pay investors, including the Royal Bank of Canada, up to an 8. 8 per cent annual return. SIBs create many problems for workers, clients and the public. They allow investors and consultants to profit from publicly - funded social programs. The profit motive distorts programs and puts pressure on workers to achieve narrow outcomes that lose sight of quality. The most hard-to-serve people may be excluded from. services in order to reach targets that trigger investor 13/07/2017

6 Economics 101: Decoding Social Impact Bonds Canadian Union of Public Employees Page 3 of 3 payouts. And, as with P3s, its unlikely SIBs will transfer much risk to the private sector. Ultimately, publicly-financed social programs can best evaluate innovative pilot projects that improve services for everyone. They are the most efficient and democratic way to deliver social services. - Sarah Ryan ca/economics-101-decoding-social-impact-bonds 13/07/2017