Pay For Success Contingency Reserve
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The Executive Budget includes $69 million to continue support of Pay for Success Initiatives, an increase of $16 million from 2014-15. Under Pay for Success, up front financing for programs is provided by private sector or philanthropic sources. Government payments are only made if the programs achieve agreed upon outcomes as verified by an independent validator and if public sector savings exceed costs. In 2013-14 New York launched the nation's first state-led Pay for Success project to train and employ approximately 2,000 formerly incarcerated individuals. New York subsequently issued a request for additional Pay for Success projects and is working towards two additional projects in the areas of juvenile justice and health care. The increased funding is necessary to support the projects at a size necessary to best determine success and maximize government savings.
While payments under Pay for Success contracts will generally occur several years after services are delivered, to allow time for outcomes to be measured, the appropriation authority is necessary to enter into the contracts.
| Category | Available 2014-15 |
Appropriations Recommended 2015-16 |
Change From 2014-15 |
Reappropriations Recommended 2015-16 |
|---|---|---|---|---|
| Aid To Localities | 53,000,000 | 69,000,000 | 16,000,000 | 0 |
| Total | 53,000,000 | 69,000,000 | 16,000,000 | 0 |
Note: Most recent estimates as of 01/21/2015