Pay for Success: A Roadmap for Implementation in Minnesota

Loading...
Thumbnail Image

Persistent link to this item

Statistics
View Statistics

Journal Title

Journal ISSN

Volume Title

Title

Pay for Success: A Roadmap for Implementation in Minnesota

Published Date

2018

Publisher

Type

Thesis or Dissertation

Abstract

Pay for Success (PFS) is a promising financing model that encourages investment in programs that produce improved social outcomes resulting in future cost-savings for the government. In a PFS project, investors provide initial capital to scale-up effective social programs and the government pays back the investors only if the desired outcomes are achieved. Minnesota emerged as a pioneer in this field, being the first U.S. state to enact legislation authorizing a Pay for Performance pilot in 2011, even before the first PFS program was launched in New York. However, despite having the legislation in effect for more than 6 years now, no PFS project has been implemented in Minnesota. Meanwhile, over 20 PFS programs have been launched in other states such as Illinois, Ohio, Colorado, and South Carolina among others, some of which have also seen their first success payments made out to the investors. This report describes the PFS financing mechanism and provides a set of recommendations for the state government and other stakeholders to advance the implementation of PFS projects in Minnesota recognizing the roadblocks that stalled implementation of the state Pay for Performance Act. We present a set of steps through which PFS funding can be approached in Minnesota and provide a list of program areas where PFS projects can be launched. The report also highlights the legislative action that could move PFS projects ahead in the state of Minnesota and discusses some ways to move forward in the absence of legislative involvement.

Description

Related to

Replaces

License

Series/Report Number

Funding information

Isbn identifier

Doi identifier

Previously Published Citation

Other identifiers

Suggested citation

Kadam, Aditi; Swanson, Jared; Kretschmann, Kyle; Lee, Min; Varshney, Nishank. (2018). Pay for Success: A Roadmap for Implementation in Minnesota. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/198095.

Content distributed via the University Digital Conservancy may be subject to additional license and use restrictions applied by the depositor. By using these files, users agree to the Terms of Use. Materials in the UDC may contain content that is disturbing and/or harmful. For more information, please see our statement on harmful content in digital repositories.