On August 8th, Delaware Governor John Carney signed Senate Bill #242 which allows the State of Delaware to enter into Pay For Success contracts. The legislation sets the parameters for how this will work. In a nutshell, an investor or organization pitches a program to a state agency and fronts all the money for it. If the program is a success, the state pays them. If it fails, they are out. How will this work in public education?
When the bill was in committee last Spring, I voiced concern over how this would work in education. Others agreed as well. As a result, an amendment placed on the bill will form a working group to carefully review how this would work in public education and to set rules. That group has not been solidified because Carney had to sign the bill first. I plan on attending these public meetings.
State Rep. Jeff Spiegelman, who attended the bill signing, said in his weekly email he expects the rules for Pay For Success to be completed by the end of the year.