The Massachusetts Pathways to Economic Advancement Project is a Pay for Success (PFS) initiative that will increase employment opportunities for limited English speakers and help them progress up the economic ladder by providing workforce development services. The project was developed through a partnership between the Commonwealth of Massachusetts, Jewish Vocational Service (JVS Boston), and Social Finance.
The Massachusetts Pathways to Economic Advancement Project will deliver services to approximately 2,000 immigrants and refugees in Greater Boston over three years. Vocational English language classes, integrated with job search assistance and coaching, will assist limited English speakers in making successful transitions to employment, higher wage jobs, and higher education.
JVS, one of Greater Boston’s largest community-based workforce and adult education providers, will offer four distinct program tracks – Rapid Employment, English for Advancement, Skills Training, and Bridges to College – that draw on its expertise integrating adult education and workforce development. The Commonwealth will repay investors only if JVS successfully achieves positive outcomes for participants.
GOALS OF THE PROJECT
- Support limited English speakers to find work, increase their earnings, and make successful transitions to higher education
- Equip Massachusetts residents with the skills that Commonwealth employers are seeking
- Build on Massachusetts history of Pay for Success to expand workforce development opportunities for residents
HOW IT WORKS
The Commonwealth of Massachusetts serves as payor for the project and will make up to $15 million in success payments.
Jewish Vocational Service will receive funding to deliver four program tracks, providing vocational training, English language classes and job search assistance to approximately 2,000 individuals in Greater Boston.
Social Finance supported the design, negotiation and financial structuring of the project and managed the capital raise. Social Finance will also coordinate performance management services for the duration of the project.
Economic Mobility Corporation will lead the evaluation of the project.
Jobs for the Future will provide technical assistance on the project, supporting performance management activities for one of the program tracks during the project’s first year.
Bank of America Merrill Lynch acted as placement agent for certain qualified high net worth and institutional investors.
The project’s 40 impact investors include:
- Living Cities, Blended Catalyst Fund
- Prudential Financial, Inc.
- Maycomb Capital, Community Outcomes Fund
- Combined Jewish Philanthropies’ Donor Advised Funds
- Barbara Bush Foundation for Family Literacy
- Blue Haven Initiative
- The Boston Foundation
- Boston Impact Initiative
- The Inherent Foundation
- The Kresge Foundation
- The Shapiro Foundation
- Sorenson Impact Foundation