Pay For Success Contingency Reserve

Budget Highlights

The Executive Budget includes $69 million to continue support of Pay for Success Initiatives, unchanged from FY 2017. 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. 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.

Program Highlights

In FY 2014 New York launched the nation's first state-led Pay for Success project, Employment to Break the Cycle of Re-Incarceration, to train and employ approximately 2,000 formerly incarcerated individuals. Under this project almost 1,600 individuals have enrolled in the program with almost 1,000 having worked at a transitional job and almost 1,300 having completed life skills training. The first payment based on program outcomes from the initial group of participants is expected to occur in the fall of 2017.

Note: Most recent estimates as of 1/17/2017