TRACKtech

The Wide Potential Innovation Funds Have for Agencies

Facilities and programs are facing difficult decisions when it comes to budgeting and funding as many lack funds on a daily basis, even more so now with COVID-19. The Government Executive posted an article on how agencies will need to spend a little to gain a lot to help them in the long run. With COVID-19 hitting the world hard, “tackling societal challenges will require federal, state and local governments to turn to innovation that’s supported by credible evidence.” This will prove to be a process but one that is necessary to continue operating and providing for those who need it.

One step that has been discussed is that public agencies should take a very small percentage, around 1 – 2% of program dollars, to create an innovation fund within every major program or portfolio of related programs. These programs range from reducing substance abuse addictions or lowering recidivism and prison rates, or even boosting high school graduation and the number of children able to go to school. These innovation funds should be structured so that agencies can address a number of issues using a variety of strategies.

One strategy is ‘“tiered-evidence” grants to test, validate and scale effective policies and interventions.” This strategy uses successful models at the federal level to provide. Another is prizes and challenges that use cash awards and other incentives to create a wide net for innovative solutions to priority issues. These can be won by any individual, business, institution and non-profit organization. Outcome payments require specific outcomes to be achieved by providers and result in payments but still allow for innovative approaches in order to receive the payment. These have included projects aimed at reducing prison recidivism, substance abuse and homeless populations while keeping them out of jail. Finally, waiver demonstrations allow jurisdictions or providers to modify existing program rules. This protects vulnerable populations while making sure the program is effective.

It may seem crazy to suggest investing a little more with such limited funds, but it is necessary in order to create long term benefits. These innovative funds are one step in the right direction when it comes to changing the system and making progress. Investing a little now and spending will only prove successful and show agencies they have a lot to gain from it.