Wall Street’s new way of making money from public education — and why it’s a problem
Within the 2015 Every Student Succeeds Act, the K-12 education law that replaced No Child Left Behind, is a provision that provides for the use of federal funds by states and school districts for something known as “Pay for Success.” The Obama administration has actually been funding Pay for Success programs in education and other areas for years, and Congress likes the concept. It is going to become a big thing in public education over the next few years. So what is it exactly?
According to the Corporation for National & Community Service:
Pay for Success (PFS) has emerged as a new approach for government to partner with the private sector to fund proven community-based solutions. PFS is an innovative contracting and financing model that leverages philanthropic and private dollars to fund services up front, with the government, or other entity, paying after they generate results. This strategy has gained strong bi-partisan support in Congress, as a strategy for increasing return on taxpayer dollars while improving the quality of services provided in our communities.
If it sounds as if it’s a way for the private sector to make money off investments in public education, that’s because it is. Supporters say it is a great way to get private entities to invest in schools that need resources. Critics say it is more likely to help the private entities earn a lot of money than do much for children.Wall Street’s new way of making money from public education — and why it’s a problem - The Washington Post: