Cincinnati Works was one of five programs across Ohio to be recognized by the state treasurer’s office as “appropriate and ready” to launch a pay-for-success program. If the state legislature agrees, it will allow us to significantly expand our reach throughout Greater Cincinnati, helping more of our neighbors find and keep stable jobs, grow their careers, and improve their financial wellness.
Ohio Treasurer Robert Sprague announced today that Cincinnati Works and four other programs (including our friends at Columbus Works) have been vetted and deemed suitable for funding through ResultsOHIO – a unique funding method that leverages private investment to launch bold, mission-driven projects.
“We must find new ways to combat the most persistent challenges facing our state,” Sprague said in a press release. “ResultsOHIO gives Ohio an avenue to do things differently – to be bold – and put innovative ideas to the test. Today’s announcement highlights five organizations that have the tools and vision to work under a pay-for-success model, and we wish them the best in their efforts to make their projects a reality.”
The next step for each of the five projects is to secure private investment and support from the state legislature.
Under ResultsOHIO, private investors provide upfront capital to grow a program that addresses a public concern. If the program meets predetermined goals, the state repays the investors with a return. Essentially, public funds are used to support successful public projects while the financial risk is shifted to private investors. The Ohio legislature will consider each of the five projects and decide whether to set aside funds for repaying investors, but no state money will be spent until a project shows measurable success.
Cincinnati Works has been working closely with the Community Outcomes Fund at Maycomb Capital, the largest dedicated pool of capital for pay-for-success financing in the United States. Maycomb Capital’s leadership has deep expertise in structuring such transactions, including helping launch the first pay-for-success project in the country.
If funded, the project that received Sprague’s stamp of approval today would allow us to reach more potential Members and employer partners – especially in the suburbs – while serving our existing Members in new ways.
“We’re grateful to Treasurer Sprague and the ResultsOHIO team for recognizing our history of success and potential to expand impact in the region,” Cincinnati Works President & CEO Peggy Zink said. “With support from the state legislature, we look forward to helping more families achieve long-term employment and financial goals that will enable them and their communities to thrive.”