Gov. John Carney has approved legislation allowing the state to reimburse companies for funding projects that meet certain goals.
The measure sponsored by State Sen. Jack Walsh (D-Stanton) and State Rep. Kim Williams (D-Newport) allows Delaware agencies to make contracts with private investors on economic development and social impact projects. The state will reimburse the companies if projects obtain certain achievements.
Walsh said the contracts stimulate investment where the state pays for good ideas.
“The amazing thing about pay for success contracts is they allow us to simultaneously spend more on exciting new ideas and projects that work while avoiding committing taxpayer dollars to projects that fail to pan out,” he said.
The Blood Bank of Delmarva is a Pay for Success contract grant recipient. Blood Bank Executive Director Michele Hart-Henry said through the contract, they will be held responsible for increasing blood donations across the state.
“And now with the passage of Senate Bill 242 and the support of the state of Delaware behind them, more organizations like us will have opportunities to thrive and grow,” she said.
Carney said taxpayers expect lawmakers to make sure state revenue goes into initiatives that show clear results. He said the new law aims to create jobs and improve the quality of services provided to Delawareans.