2014 Oklahoma Business Summit Sarah Roberts, Inasmuch Foundation, Program Officer (cell) (office)

OKC Educare Sunbeam Family Services 200 children and their families EHS, HS, Pre-K, DHS Childcare Subsidy New CEO and Executive Team Dan Craig, Director Early Childhood Services Tour

Early Head Start – Child Care Partnership Grant Year Grant Opportunity Date Grant Submitted: August 2014 Summary: Sunbeam proposed to provide year-round (48/52 weeks) services to 336 low-income children (birth to age 3) and their families for 12 highest-risk zip codes in Oklahoma County by partnering with 14 child care centers and 92 teachers in 42 classrooms. The model is fully aligned with the Head Start Parent/Family/Community Engagement Framework, Infant/Toddler Program Framework and meets the Early Head Start Program Performance Standards. Amount Requested: The total operating 1 st year budget for this program is $4,304,473. This includes $3,141,208 for Early Head Start program operations and Training/Technical Assistance, as well as an in kind match of $1,163,265. Start-up costs are budgeted at $714,185. The federal cost per child is $9,349 with $5,942 (63.5%) provided to child care partners. Match – Potts Family Foundation & Inasmuch Foundation pledge to raise $690,000 annually for five years from a combination of cash and in-kind sources # of Slots: 336 Location of New Slots: 5 Child-care centers in South OKC 5 Child-care centers in NE OKC 4 Child-care centers in NW OKC Expected Notice of Award: November 2014-March 2015

Smart Start Central Oklahoma Preparing children to start kindergarten ready to learn Early Birds Stacy Dykstra, Executive Director Oklahoma Partnership for School Readiness – Innovative Grants – 49% of Oklahoma children under the age of 6 live in low income households

Pay for Success PFS is performance-based contracting where government pays only if specified results are achieved. BASED FINANCING MODEL

BENEFITS to Government ELIMINATES THE MONETARY RISK OF ADDRESSING PUBLIC NEEDS ENSURES GOVERNMENT IS A RESPONSIBLE STEWARD FOR TAXPAYERS, WHO PAY FOR OUTCOMES, NOT ACTIVITIES PROGRAMS ARE RIGOROUSLY SELECTED BASED ON STRICT DATA AND PERFORMANCE INDICATORS, INCREASING LIKELIHOOD OF SUCCESS POLICY MAKERS MAKE DECISIONS ABOUT WHICH OUTCOMES THEY WANT TO ACHIEVE, NOT WHICH PROGRAMS THEY WANT TO FUND GIVES GOVERNMENT ABILITY TO DO EARLY-STAGE INTERVENTIONS THAT ARE COST- EFFECTIVE AND SAVE TAXPAYERS IN THE LONG-RUN INSTEAD OF PAYING FOR ACTIVITIES, GOV’T WILL PAY WHEN OUTCOMES ARE ACHIEVED INTERVENTIONS CAN OFTEN BE FUNDED OUT OF COST SAVINGS – E.G., FUNDING SUBSTANCE ABUSE TREATMENT UPFRONT CAN REDUCE MORE EXPENSIVE FUTURE INCARCERATION

Applying Pay for Success to Early Childhood Development  Early childhood research shows a significant reduction in special education assignment for low income children who attend high quality prekindergarten. Reduction in special education costs may be sufficient to pay for a prekindergarten PFS project.  In addition to reductions in special education, sources of short and long term cost avoidance for government include grade retention, crime, welfare, and increased earnings.

Early Childhood Development PFS Economics There are three important relationships in a PFS project for high quality prekindergarten: 1.The ratio of the cost of the intervention (prekindergarten) to the cost of the remediation (special education). 2.The ratio of intervention impact to non-intervention impact. 3.The combination of private investor funding, state funding, and federal funding for PFS scholarships for economically disadvantaged children to attend high quality prekindergarten.

United Way of Salt Lake Elizabeth Garbe, Senior Director of Government Relations and Public Policy Contact Elizabeth for additional information on Pay for Success in Utah.

Bullets on Pay-for-Success (PFS) Revolving Fund In a PFS contract, private philanthropy or investors provide upfront capital (and take all risk) to a private nonprofit. The state pays only if specific outcomes and monetary savings are achieved. Otherwise, the state owes nothing. Distinct from traditional contracting, OK State pays only after services have been delivered and payments are based on the level of outcomes NOT the program cost.  PFS contracting does not require government investment in additional fixed costs, overhead or infrastructure. Programs are delivered by private entities. The pending bill represents enabling legislation, allowing the State to enter into a PFS pilot. Any specific PFS contract would be negotiated after bill passage. o The minimum $2,000,000 is the amount the nonprofit must be able to raise. This does not refer to the proposed contract value or that the state will be required to pay the full $2,000,000.