CONCORD- Today, the NH Senate approved an innovative “pay for success” financing program for pre-kindergarten education. After the Senate passage of SB 503, Senator David Watters (D- Dover) released the following comments:
“I applaud my Senate colleagues for supporting this innovative approach to financing pre-kindergarten education,” said Senator Watters. “New Hampshire is one of a few states in the country that does not provide early childhood education, but SB 503 gives our communities an alternative way to finance this education without putting the burden on the local school districts.”
Through SB 503’s “pay for success” model, funding for pre-kindergarten education would come from private investors who would then be reimbursed by the state if the program results in improved third grade reading levels or reduces the cost of special education remedial services. The payments will only be made if savings exceed the costs of the program. The first “pay for success” program was established in Utah in 2013 and has proven effective at reducing the cost of special education services and saving the school districts money. The total savings in the first year of the Utah program was $281,550.
“SB 503 is a ‘New Hampshire’ solution to improving education for our children by creating a partnership between our educators and private investors. I thank my Senate colleagues for their support, as this legislation is critical to expanding access to quality education to our children.”