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.