Chicago Child-Parent Center Pay for Success Initiative
The Chicago Child-Parent Center (CPC) Pay for Success Initiative was a $16.9 million social impact bond program that expanded high-quality preschool education to 2,618 low-income children in Chicago over a four-year period. The program utilized the CPC model, providing half-day preschool education to 3- and 4-year-olds along with comprehensive family services. The initiative aimed to increase kindergarten readiness, improve third grade literacy, and reduce the need for special education services.
The program leveraged private investment to fund the upfront costs of the preschool expansion. Investors were repaid by the city based on achieved outcomes, including $2,900 for each child deemed kindergarten-ready, $750 for each child proficient in reading by third grade, and $9,100 for each year a child avoided special education services. Results were generally deemed to be successful, albeit less than hoped for, resulting in investor payouts substantially less than the maximum allowed.
Pros
Allowed expansion of proven preschool model without upfront public funding
Aligned incentives around achieving measurable outcomes
Leveraged private capital for public benefit
Potential for cost savings to city if program successful
Partners
City of Chicago
Chicago Public Schools
Goldman Sachs Social Impact Fund
Northern Trust Corporation
J.B. and M.K. Pritzker Family Foundation
Metropolitan Family Services
Illinois Facilities Fund
Harvard Kennedy School Government Performance Lab
