“Pay for Success” is succeeding in Salt Lake City. Expanding preschool cut special-ed spending dramatically. Most of the savings will go to repay investors who funded the expansion, reports the Salt Lake Tribune.
Private funding allowed about 600 students to enroll in public and private preschool programs in 2013. Of those students, 110 4-year-olds were expected to need special education during their kindergarten year.
But only one of the students — who are now in the first grade — has required special education, which translates to about $281,000 in cost avoidance for Utah’s public education system.
Goldman Sachs and J.B. Pritzker committed $7 million to the pay-for-success program.
United Way of Salt Lake has cut a check for $267,000 to cover 95 percent of the first-year savings.
Once investors are repaid, with interest, they’ll receive 40 percent of ongoing cost savings until the participating students complete sixth grade.