More governments are using a Pay for Success (PFS) model to provide funding to improve social conditions. First, the vast majority of social spending in America is done by government and philanthropy and is comparatively tiny for just about any issue you can think of — poverty, education, recidivism, homelessness, wellness, etc. The information revolution is finally reaching government, giving us a low-cost way to see if people’s lives are improved by the programs that governments fund. PFS is about reallocating utility dollars away from services that don’t work and toward those that actually do bring about improvement in people’s lives. So one way to think about PFS is to ask the question “Is there an outcome and performance feedback loop connected to the money?” PFS is not about the finance or capital market. It is about “reallocating utility dollars.” Do you think utilities should use the PFS model when delivering funding to external organizations involved in social enhancements program?
Public Works LA
Principal Environmental Engineer