Pay For Success Contingency Reserveskip breadcrumbs
The Executive Budget includes a $125 million commitment to undertake Pay for Success Initiatives, an increase of $95 million from 2013-14. Under Pay for Success, up front financing for programs is provided by private sector or philanthropic sources. Government payments are only made if the programs achieve agreed upon outcomes as verified by an independent validator and if public sector savings exceed costs. In 2013-14 New York launched the nation's first state-led Pay for Success project to train and employ approximately 2,000 formerly incarcerated individuals. Building upon this success, the increased commitment would provide $100 million for additional projects in the areas of early childhood development and child welfare, health care or public safety, as well as continued support of the project to train and employ formerly incarcerated individuals. In addition, $25 million would be made available for initiatives in the area of homeless housing and preventive services.
While payments under Pay for Success contracts will generally occur several years after services are delivered, to allow time for outcomes to be measured, the appropriation authority is necessary to enter into the contracts.
|Aid To Localities||30,000,000||125,000,000||95,000,000||0|
Note: Most recent estimates as of 01/20/2014