The city last week announced a plan to reduce the recidivism rate among adolescents in the city’s jails, which is now nearly 50 percent. The plan, the first of its kind in the country, would have investment giant Goldman Sachs lend a nonprofit group $9.6 million to run a four-year intensive counseling program for 16- to 18-year-olds on Rikers Island.
Mayor Bloomberg’s private charity will provide $7.2 million in loan guarantees to reduce Goldman’s risk. The investment firm will be paid back on a sliding scale, with the amount rising as the percentage of adolescents returned to the jail within a year declines. “In this model, government and taxpayers only pay for success,” say city officials.