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For The Record: Paying For Preschool With Social Impact Bonds

Board of Education member Henry Bienen took an unusual step at last month’s meeting: He voted against a plan that came down from Mayor Rahm Emanuel’s office.

Bienen, a former president Northwestern University, said he was “very uneasy” with a proposal to borrow nearly $17 million from investors in a so-called “social impact bond” (SIB) to pay for a four-year preschool expansion.

“I’m not against social investments,” he said during the meeting. “And I don’t question the good motives of the people who are putting up the money. I think the measurement issue is very difficult, and I think the rate of return, or interest rate, is high.”