Created: 12/31/2013 4:45 AM WHEC.com
By: Associated Press
New York officials say they are launching a project to train and employ former inmates using $13.5 million raised from businesses and foundations as investors.
Under a contract with Social Finance Inc., which raised operating funds from investors, the state will pay those investors based on measured employment increases and reductions in recidivism.
State officials say it should reach 2,000 ex-inmates soon after their release, connecting them to job training and placement services over four years in Rochester and New York City.
The state received $12 million from the federal labor department for the project.
Social Finance structured the investment. Bank of America Merrill Lynch has raised $13.2 million from investors. It is also backed by the Rockefeller Foundation and the Robin Hood Foundation.
Chesapeake Research Associates will audit results.