Pay For Success Preschool Program

About the Program

Category: Children and Youth (Best in Category)

Year: 2014

There is a growing need to narrow the achievement gap of children, especially those most at-risk. Research shows that children who read proficiently by the end of third grade are more likely to graduate from high school and to be economically and socially successful in adulthood. As governments struggle to adequately fund education, creative strategies must be developed that address this need. Research shows that at-risk children who attend quality preschool programs use special education services at a significantly reduced rate once they reach kindergarten on up through high school graduation. The Pay for Success Preschool Program is a public-private partnership between Goldman Sachs, J.B. & M.K. Pritzker, United Way of Salt Lake, Granite School District and Salt Lake County. The Pay for Success Preschool Program is a funding model that increases resources available to school districts allowing them to invest in high quality preschool programs for at-risk, low income children. The Pay for Success Preschool Program is the first results-based financing program in the United States for early childhood education. Salt Lake County contributed $350,000 to invest in the Pay for Success in Preschool Program. This funding, along with private investments, provided an additional 600 low income children access to high quality preschool beginning in August 2013. In addition to savings in special education for the Granite School District, Salt Lake County estimates the $350,000 investment will result in an estimated $1.3 million in present value ‘cost avoidance’ in substance abuse treatment, incarceration, medical expenses due to poor health outcomes, and housing needs.