I have written before about the controversial program called “Pay for Success.” This is also known as “social impact bonds.” Recently, two officials at the US Department of Education and the White House wrote an opinion piece in the Salt Lake Tribune applauding the use of “pay for success” to expand pre-kindergarten programs.
What is “pay for success” and what are “social impact bonds?” As blogger Fred Klonsky explains:
Pay for Success is a social impact bond (SIB) that pays Wall Street investors like Goldman Sachs a bounty for every child that does not receive special education support.
Pay for Success is nothing less than a push-out program that then pays the bond investor a bonus for every child that is pushed out of special ed services.
Special education advocate Beverley Holden Johns sent me this comment on the administration’s endorsement of “pay for success”:
In my opinion this is a new low for USDOE. Uncritically mentioning that
only one student in the PFS group was identified for special education,
justifying these absurd results by stating it will be a bumpy road, completely
failing to stress that only very high quality pre-school produces results –
failing to point to the very substantial questions about the quality of PFS in Utah,
not stating that Goldman Sachs has ALREADY BEEN PAID over $260,000 as its
first payment, and by saying USDOE is excited by Pay for Success in ESSA is irresponsible.