Now, in Utah, Goldman Sachs Pay for Success claims a success rate of over 99 percent - reducing the need for
special education by over 99 percent.
PAY FOR SUCCESS IS NOW IN BOTH THE HOUSE AND THE SENATE ESEA BILLS.
On July 16, 2015, U.S. Senator Orrin Hatch (R-Utah) issued a news release stating:
- The Every Child Achieves Act, as passed by the Senate HELP Committee, includes language that would make Pay for Success initiatives an allowable use of funds through Title I, Part D (Prevention and Intervention Programs for Children and Youth Who are Neglected, Delinquent, or At-Risk) and Title IV, which funds programs addressing student health and safety.
- On February 26, 2015, the House of Representatives approved a bipartisan amendment to H.R. 5, the Student Success Act, that would make Pay for Success initiatives an allowable use of state and local funds in Title II and in the Teacher and School Leader Flexible Grant, supporting states and school districts in improving student outcomes and saving resources by training and supporting educators.
Please read the following excerpts from the New York Times article on Pay for Success in Utah:
Among the 110 students who had been expected to need special education had they not attended preschool, only one actually required it this year....
Among the 110 students who had been expected to need special education had they not attended preschool, only one actually required it this year....
Gov. Gary Herbert of Utah and Goldman’s chief executive, Lloyd C. Blankfein, lauded the outcome on Wednesday as a victory for public-private partnerships.
It is also a public relations victory for Goldman, which has been trying to reform its reputation as an institution focused solely on the bottom line....
It is also a public relations victory for Goldman, which has been trying to reform its reputation as an institution focused solely on the bottom line....
The $4.6 million put up by Goldman— and the $2.4 million invested by the Pritzker Family Foundation — went toward expanding an existing preschool program for poor children in Salt Lake County.
The program had already been shown to decrease the need for special education, but it had not been able to expand to meet all of the demand.
The Goldman money — which is more of a loan than a bond — allowed another 595 3- and 4-year-olds to attend preschool last year, in addition to the 2,400 or so other children who were already enrolled.
Of those new students, tests indicated that without preschool, 110 were likely to need special education.
This year, teachers determined that 109 of those pupils did not need special services.
For each one of them, Goldman and its partner got about $2,500, and will receive that each year, through the six grade, that the students avoid special education, with the amount decreasing in the years after that.
The State of Utah, and some local private charities, are still paying 95 percent of what it would have cost for the special education. But Mr. Roman, at the Urban Institute, said the state would reap significant other savings if the students continued to avoid special education, which is generally associated with higher levels of truancy, juvenile crime and other problems.
Bev Johns
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