From Beverley Holden Johns:
CALL D.C. ON PAY FOR SUCCESS
NOW IN S. 1177, the new No Child Left Behind law (ESEA):
You may be able to leave a message at any time, but to talk to
a live person just stay on the phone ignoring any prompts.
PLEASE SAY: S. 1177 will harm
special education. In Utah, Pay for Success (which is authorized
in the bill), funded by Goldman Sachs, resulted in over 99 percent
of children NOT being identified for special education.
(New York Times article of November 3, 2015: “Success Metrics
Questioned in School Program Funded by Goldman”).
PLEASE BE POLITE, BUT VERY FIRM AND INSISTENT –
YOU ARE TRYING TO DO A MOST DIFFICULT THING.
Call your U.S. Representative at their Washington, D.C. office.
Call House Speaker Paul Ryan at 202-225-0600
Call Democratic Leader Nancy Pelosi at 202-225-0100
Call House Majority Leader Kevin McCarthy at 202-225-4000
(each of above telephone numbers are for their leadership
office within the U.S. Capitol Building)
Call the top Democrat for S. 1177, Rep. Bobby Scott at 202-225-8351
(his office opens at 7:30 AM CST)
THE CONFERENCE COMMITTEE REPORT ON S. 1177:
The House amendment, but not the Senate bill, includes a definition for
‘‘Pay For Success Initiatives’’.
Amendment to strike the definition and insert the following:
PAY FOR SUCCESS INITIATIVE.
—The term ‘‘pay for success initiative’’ means a performance-based grant, contract, or cooperative agreement awarded by a public entity in which a commitment is made to pay for improved outcomes that result in social benefit and direct cost savings or cost avoidance to the public sector.
Such an initiative must include—
(1) a feasibility study on the initiative describing how the proposed intervention is based on evidence of effectiveness;
(2) a rigorous, third party evaluation that uses experimental or quasi-experimental design or other research methodologies that allow for the strongest possible causal inferences to determine whether the initiative has met its proposed outcomes;
(3) an annual, publicly available report on the progress of the initiative; and
(4) except as provided as under paragraph (2), a requirement that payments are made to the recipient of a grant contactor or cooperative agreement only when agreed upon outcomes are achieved.
Unfortunately NOTHING in this definition would have stopped
what is happening in Utah and in Chicago.
As we just passed its 40th birthday, special education
faces perhaps its greatest threat since the Education
of the Handicapped Act (EHA), now the Individuals with
Disabilities Education Act (IDEA), was signed into law.
The new No Child Left Behind bill, S. 1177, as reported
by the Conference Committee between the U.S. Senate
and the U.S. House includes the permissive use of Federal
funds by States AND by local school districts FOR
Pay for Success.
Funded by Goldman Sachs, Pay for Success in Utah
denied special education to over 99 percent of the
students that were in the early childhood Pay for Success
program.
Goldman Sachs has received a first payment of over
$250,000 based on over 99 percent of students NOT
being identified for special education.
Based on these results, Goldman Sachs may receive
an over 100 percent return on its investment as it
will receive yearly payments based on students
continuing to NOT be identified for special education
(multiple yearly payments for one student).
If special education is reduced to less than 1 percent
of students, for all practical purposes it will cease to
exist.
Goldman Sachs has also funded a Pay for Success
program for the Chicago Public Schools based on
paying Goldman $9,100 for each student, each year, NOT
identified for special education, but results for Chicago
from that program are not yet available.
Success is not the elimination of special education.
Success is not failing to identify students as needing
the specialized and individualized instruction required
by IDEA.
We simply cannot expect the general education teacher
to do it all, to know it all, and to achieve academic
excellence for each and every student.
Pretending we can eliminate disability, pretending
that almost every student with a disability and their
parents will benefit WITHOUT the legal rights of IDEA
which are only granted when a student is identified
for special education, is to turn us back over 40 years
to the time before we had State laws and then the
Federal law requiring special education for each and
every student with a disability.

“Pay Goldman for Success”
Pay Goldman for “Success”
And jettison the rest
The Special ed
Is simply dead
But Goldman is the best!
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Reblogged this on David R. Taylor-Thoughts on Education.
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What is Goldman Sachs doing for students with the $250,000? Perhaps parents with means should have an outside evaluation done on the students. If students are being denied service, shouldn’t this be under the Office of Civil Rights? They may need to file a lawsuit. “Pay for Success” is another diabolical neoliberal, conservative idea designed to make expensive problems disappear by ignoring the expensive implications. It is a dangerous precedent for all that believe in a fair and equitable education. I can see this miscarriage of education being used for other vulnerable sub-groups that the government deems unworthy of legitimate service.
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It’s how we pay for public programs now. We either beg for charity from billionaires or “produce a return” on investment.
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It is disheartening that the democrats are actively involved in dismantling government of, by and for the people. Instead, they are willingly whittling away the public trust by turning over responsibilities to corporate hustlers through toxic “partnerships” that provide corporations a lot more benefits than citizens.
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Goldman Sachs was charged by the SEC for defrauding investors to the tune of over a billion dollars.
Why anyone would allow this “bloodsucking Vampire Squid” (thanks to Matt Taibbi) anywhere near our schools and children is a deep mystery that can probably only be explained by figuring out who stands to benefit.
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Here is my too long letter to Ben Cardin’s office. I’m posting it since it has a few additional citations people may want to use while contacting their senators. I lost the links while pasting the letter but the articles can all be found on Google.
I am a resident of Maryland and am very concerned about inclusion of substantial funding for pay for success programming in
the current education bill S.1177. I think if Senator Cardin looked into the issue closely he would also be concerned. Pay for success programs (aka social impact bonds) may look good on the surface but are largely unproven and risk wasting tax payer dollars.
The New York Times recently published an article on the flawed research methods used in what was thought to be a very successful pay for success program in Utah.
The program evaluation of the program designed to reduce the need for special education services grossly over-estimated the number of students who would need those services without the pay for success program. As a result, the evaluation profoundly overestimated the impact of the program. The New York Times article details how the Utah program was underfunded compared to similar programs but that Utah taxpayers wound up paying Goldman Sachs a large sum because of the supposed success.
Success Metrics Questioned in School Program Funded by Goldman (Nov 3, 2015) New York Times
Earlier this year, the New York Times reported on the failure of another high profile pay-for-success program at Riker Island.
Wall St. Money Meets Social Policy at Rikers Island (July 26, 2015). New York Times.
Proponents of pay-for-success programs claim that they are backed by considerable research. The research is just not there but the risk to good governance certainly is present. This is the type of mismanagement Ben has built a career on opposing.
For a more detailed look at the problems with social impact bonds I suggest reading,
Goldman Sachs explains: social impact bonds are socially bankrupt (Nov 9, 2015) Mathbabe Blog
Six Issues with Social Impact Bonds. (May 27, 2014) Civil Society UK.
This last article is from Britain where pay-for-success started. The writer concludes:
” Okay, so where does that leave us? With a potentially really good idea, but with an awful lot that can go wrong.
Basically, given the complexity and cost of a SIB, in a sensible world we would only use them, or any other PBR, to fund things when we didn’t know if they would work. We would leave the design to independent experts, and accept the cost because they were experimental.Ideally, SIBs and PBR shouldn’t be used as a permanent solution, at scale, because of the extra cost involved.
Once you have a proven set of effective interventions, the sensible thing to do is to fund them through a long-term contract, or better still, a grant.”
Thank you for your time looking at this issue.
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“Pretending we can eliminate disability …”
President Ray-Gun did it successfully and today, decades after his presidency, he is a god to many in the GOP because, after all, he ushered in the free market approach to ruling the world and started by closing down all the federal hospitals that housed and struggled to treat the mentally ill dumping those people on the streets.
I still remember President Ray-Gun saying that America didn’t have a problem with homeless people. I was getting on the freeway on the way to work passing homeless people holding their cardboard signs asking for any help anyone was willing to offer them—jobs, food, shelter, whatever—when I heard President Ray-Gun say that on the radio—America doesn’t have a homeless problem.
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This is very concerning. As a special ed. teacher for over 11 years, I am daily faced with having to exercise my civil disobedience to protect my students’ rights to learn things at their speed. Today, our Pearson “helper” instilled the Data Wall. Little cards with numbers for each child and stickers showing their levels. Stupid waste of my time. Meanwhile, my class of 3 kindergarteners and 8 second graders worked on their Powhatan projects, something the general ed students don’t have time to do because they are so busy taking quizzes. I irritate the Pearson guy because of what I learn on Diane’s blog about how Pearson is failing our children. I also got elected Leader of the Month by my second grade team. I must be doing something right!
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Wait…you’re saying that Goldman Sachs will invest in “Pay for Success,” and if a school district keeps 99% kids out of special ed, they pay it back and Goldman Sachs makes a profit?
So, we will have federal law encouraging private investments in incentives to keep what amounts to 86%, if I did my math right, of the present 13% of students that are IEP’d, out of special ed. Eliminating special services for that 86%. And believe me, as a Mom of a kid with Asperger’s who tried every intervention, in and out of school, to allow my son to get into general education, he still needed special services.
This is monstrous. As a democracy, we the people responsibility for educating all of our children, no matter what their needs, not farming the disabled out to corporations that profit from denying them services.
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