Public-private partnerships in Michigan pose opportunities, challenges
A few weeks ago on Current State, we told you about something brand new in Michigan: social impact bonds. They’re part of a budding effort to solve public problems using private investor capital.
Social impact bonds are part of a larger landscape linking government and the private sector, namely, Public-Private Partnerships (P3's). As government revenue has plunged in recent years, public-private partnerships have emerged as a way to finance infrastructure and other initiatives.
Current State takes a look at the role Public Private Partnerships might play in Michigan, as well as some potential pitfalls.
Rex LaMore, Director of Michigan State University’s Center for Community and Economic Development, says research institutions need to look further into how to determine when a P3 would be more effective than either a purely private or public sector initiative.