Young children with disabilities and Pay For Success: Options and Challenges

1. Young children with disabilities and Pay For Success: Options and Challenges OSEP Leadership Conference July 2019 Jennifer Tschantz, Alice Ridgeway, Grace Kelley

2. OSEP Disclaimer 2019 OSEP Leadership Conference DISCLAIMER: The contents of this presentation were developed by the presenters for the 2019 OSEP Leadership Conference. However, these contents do not necessarily represent the policy of the Department of Education, and you should not assume endorsement by the Federal Government. (Authority: 20 U.S.C. 1221e-3 and 3474)

3. PFS and Children with Disabilities The Department of Ed: • Engaged the disability community • Required safeguards and innovation around this outcome for the Preschool PFS Feasibility Studies • Established a PFS State Learning Community to explore ideas about improving/expanding services for young children with or at-risk for disability (CT, LA, ID, IA, MA) • Explored other areas where children and youth with disabilities could benefit from PFS projects

4. Exploring Pay for Success • A learning community comprised of four states, OSEP, DaSY and ECTA explored the potential of using a PFS model to promote good outcomes for young children with disabilities and their families, a population that has not yet been the focus of a PFS study.

5. State Participation in PFS Exploration • Developed for IDEA early childhood staff • Part C Early Intervention • Part B Section 619 Preschool Special Education • Offered 3 levels of engagement • Participate in a learning community that worked intensively to pursue PFS as a possible strategy in the state ( 4 states) • Participate in an interest group to learn more and discuss PFS with TA providers and other states to help decide if PFS could be used in your state (3 states) • Receive periodic information about new developments in PFS (open)

6. What is Pay For Success? • Pay for Success (PFS) is: • an innovative contracting model that… • can leverage philanthropic and other private dollars to… • finance services for a target population that… • measurably improve the outcomes for the individuals and communities and, where… • government can act as the payor, spends taxpayer dollars wisely for what works.

7. What is Pay For Success? • This allows government to better partner with and leverage the resources of philanthropic and other investors to help drive evidence-based innovation and invest in what works.

8. Benefits of Pay For Success 9/5/2019

9. An Example of a Current PFS Project: Chicago Child-Parent Center (CPC) • Evidenced-based high-quality preschool program • Evaluation data demonstrating positive outcomes for participants (low-income preschoolers) • Unmet need (not enough CPCs) • Strong economic model for investing in high-quality preschool Stock photo

10. Chicago -Social Impact Bonds • SIBs leverage private investment to finance such services so that providers do not have to front the cost of delivery. • Investors are rewarded if providers meet agreed-upon outcomes but lose their investment if providers do not meet those outcomes

11. A state example: Connecticut - Pay for Performance & Rate Cards • Performance Based Contracting method of contracting where the government defines the results it is seeking, rather than the process by which those results are attained. Contractor's payment, extensions, or renewals tied to achievement of specific, measurable. • Outcomes Rate Card are a menu of outcomes that government seeks to achieve and the prices they are willing to pay for each outcome achievement.

12. A state example: Connecticut • Home Visiting uses a “rate card” model. • Basically they are payments for achieving certain outcomes. • Social Finance helped them set it up. • The details of the outcomes are in the contract language…. • Caseload Maintenance (full as defined based on FTE) • Full Term Birth (enrolled <28 weeks and born >37 weeks gestation) • Safe Children (no substantiated or pending incidents of maltreatment) • Caregiver Employment/Education (employed or enrolled in a E&T Program) • Some are annual outcomes but are reported in the ECIS quarterly

13. Connecticut • Part C Contracts with 30 EIS programs. • PFP language in those contracts is MUCH more broad Monthly and One-time Payments: At the sole discretion of the Department, and within available appropriations, additional payments may be made to the Contractor for the purpose of enhancing Program quality or to offset unforeseen Program costs beyond the control of the Contractor. • This allows us to create and modify the rules in procedures vs. a contract amendment. • We are not even close to being “within available appropriations”

14. Connecticut

15. Potential Applications for Young Children with Disablities – Lessons Learned • Serving children at risk of developmental delay • Maternal depression screening and referral • Enhanced case management for high risk families • Enhanced evidence-based interventions • Serving children with disabilities in child welfare 15

16. PFS and Children with Disabilities – Lessons Learned What can *you* do within your PFS project? • Build in safeguards to protect student rights. • Ensure elementary school personnel are blind to child PFS status • Review similar PFS efforts that look at outcomes in early elementary school – WHY? • Ensure projects are aware of or strengthen connections to early intervention services/programs: The disability community is a key stakeholder group that needs to be meaningfully engaged early • Think about PFS projects as building EC systems, opportunities to break down silos to better address the needs of most vulnerable young children and their families

17. Lifecycle of a PFS Project

18. Lifecycle of PFS Project • Analyze the Issue • Assess project feasibility • Develop the project • Transaction Structuring • Evaluate the project

19. Where we started - PFS Phase: Education • Prior to beginning PFS, a strategic planning process includes a • rigorous assessment of the unmet needs of the population to be served, • identification of service gaps, • development of evidence-based solutions, and • a determination of the suitability of PFS funding.

20. Education & Exploration (Pre-feasibility): Where are the data? • Historical data from local providers (past program performance) • Administrative data (child-, program-level) • Community needs assessments • Local Census data • National survey data • ECE reports (aggregate data)

21. Data Considerations for Determining PFS Feasibility – Lessons learned • Availability of existing data sources • Quality and completeness of available data • Flexibility to change or modify data sources or collection • Stakeholder input into data collection and outcomes • Availability of strong data demonstrating effectiveness of the intervention to achieve the intended outcomes

22. Importance of data – Lessons learned What data is important to consider in considering a PFS project? • Data about a need and a population • Data about an intervention and evidence of its impact • Data about the outcomes of an intervention in a PFS model • Data about the cost/ benefit savings of an intervention in a PFS model • Short term and long term

23. The Learning Community – Lessons Learned • Allowed deep exploration of the concept • Ability to share work and get feedback from others – states, TA and PFS experts • Expanded thinking about importance of data • Expanding thinking about alignment and partnerships within the ECE system and the broader community • “If you are interested in trying this you have to start walking the path even without knowing where you are going” - State member

24. Slide 24 ED Investments in PFS To date, investments have focused on feasibility because of state of the field and our funding authorities. • ED PFS Feasibility Tool Kit: an introductory guide for state and local governments and other stakeholders interested in exploring the possibility of a PFS project for education or related societal issues • Preschool Feasibility Studies: Feasibility of using PFS to expand and improve preschool • Office of Special Education Programs Capacity Building: Technical assistance to educate and build capacity among states to explore using PFS to expand or improve services and programs for young children with disabilities. • Early Learning Dual Language Programs: Feasibility of using PFS to scale up evidence-based interventions for early learning dual language models • Career and Technical Education: Feasibility and transaction structuring phases of a PFS financing model to support the development to implement new or scale up existing high-quality CTE opportunities

25. Social Impact Partnerships to Pay for Results Act Slide 25 • At least 50 percent of the funds must be dedicated to projects that benefit children. • 15 percent of funds can be used for feasibility projects. • Funds must support projects that produce one or more measurable, clearly defined outcomes, including: • improving high school graduation rates • improving early childhood health and development among low-income families and individuals • reducing the number of children in foster care • reducing recidivism among juvenile offenders • improving the educational outcomes of special-needs or low-income children • Increasing the independence and employability of individuals who are physically or mentally disabled • other outcomes defined by State or local government that result in positive social outcomes and Federal savings

26. Social Impact Partnerships to Pay for Results Act (SIPPRA) Slide 26 • The Bipartisan Budget Act enacted in February 2018 provided $100 million to Treasury for PFS-like social impact demonstration projects under SIPPRA. • Funds are available for 10 years and can be used to support outcome payments. A portion of funds may also be used for administrative costs, feasibility studies, and evaluations. • A new Federal Interagency Council, which will include ED, will advise and assist the Secretary of the Treasury on program and policy matters. • A new Commission on Social Impact Partnerships comprised of Presidential/Congressional appointees to make recommendations regarding project approval and other matters. • Interagency working groups will develop the Request for Proposals and an outreach strategy. ED is represented on both working groups. • Treasury has the authority to transfer funds to other agencies to implement approved applications.

27. Discussion • What data are important to make the case for the feasibility of a PFS project? • What are potential application of PFS in serving young children with disabilities? • Wh at do you see as the challenges and opportunities of PFS?

28. OSEP Disclaimer 2019 OSEP Leadership Conference DISCLAIMER: The contents of this presentation were developed by the presenters for the 2019 OSEP Leadership Conference. However, these contents do not necessarily represent the policy of the Department of Education, and you should not assume endorsement by the Federal Government. (Authority: 20 U.S.C. 1221e-3 and 3474)