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Program funding and financing: Pay for Success Early Childhood Education Toolkit report #4

Description:
This report describes program funding in early childhood PFS projects, with a focus on early childhood education. It is part of a larger toolkit for states, localities, and investors considering early childhood PFS projects. Its content is based partly on stakeholders' experiences with ongoing PFS projects. First, we describe funder incentives for entering a PFS contract. We consider key questions about structuring repayments, including considerations about who will be the outcome payers and how governments can provide funds for repayments. We then describe strategies for mitigating appropriations risk, such as placing repayments into sinking funds or escrow accounts, or running a one-year ramp-up or pilot period. Last, we discuss considerations for passing PFS-specific legislation and the optimal size of a PFS contract. (author abstract)
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