The concept is simple: by working together in new ways, we can achieve measurable results for vulnerable Americans and, in the longer term, make measurable progress on persisting social problems. “Pay for Success” offers a new way for government to ensure effective programs reach traditionally and currently underserved communities. The hope is that Pay for Success will help us find better ways to get Americans the supports and services they need – whether it is access to housing, workforce development, college completion or support for youth aging out of foster care.
Pay for Success is being tested in the United Kingdom and Australia, and already we see the potential of this new form of grant-making to help governments target limited dollars available on those social programs that achieve positive, measurable impact. In particular it offers a financing solution for preventive services, which are often the first services to get cut in hard budget times even though they lead to reduced costs and better outcomes in the long-term. For example, research shows that the years leading up to kindergarten are among the most significant in shaping a child’s foundation for learning and school success, which can also translate into real cost savings. Indeed, these findings suggest that for every $1 invested in high-quality early childhood education, we save $7 from the costs of associated programs, like special education, teen pregnancy and juvenile delinquency. Nevertheless, when budgets get tight, these and other preventive services for vulnerable populations are among the first to get cut. At a time when all levels of government are facing cutbacks, Pay for Success offers a new approach to invest in the critical services for vulnerable populations that need more – not less – support.
Fonte: White House