Pay for Success is an innovative funding model that drives taxpayer dollars toward social programs that provide the best, proven results to people in need. Private and/or charitable funders provide the money up front, so that service delivery can begin. Independent evaluators monitor progress and verify the final outcome. Government repays the original funders only after the originally-agreed
to results are achieved.
View the presentation that explains how Pay for Success works.
Salt Lake County’s two new Pay for Success projects (programs launch Jan./Feb. 2017) provide First Step House and The Road Home with access to flexible funding to tackle these social challenges. Salt Lake County will repay private lenders up to $11.5 million in success payments if and only if an independent evaluation demonstrates the programs’ effectiveness in improving the lives of those in need.
Salt Lake County and project partners will enter into a multi-year contract:
Salt Lake County first used the Pay for Success model to educate low-income kids. Mayor McAdams led the way for 600 additional kids to attend voluntary high-quality preschool in the Granite School District. Using Pay for Success, the county partnered with the private and non-profit sectors to fund the program.
Visit the high-quality preschool pilot program website to learn more.