Utah High Quality Preschool Program Social Impact Bond
The Utah High Quality Preschool Program Social Impact Bond was launched in 2013 to expand high-quality preschool opportunities for lower-income 3- and 4-year-old children. The program aimed to boost school readiness and preparedness for academic learning among this target population. A key assumption of the initiative was that better kindergarten preparation would result in fewer children requiring special education and remedial services from kindergarten through 12th grade, leading to cost savings for school districts and the state.
The program built upon an existing successful model that had been operating in the Granite School District for seven years. Goldman Sachs and J.B. Pritzker provided initial funding of $7 million in the form of social impact bonds. The initiative was structured so that investors would be repaid based on the cost savings and avoidance achieved through reduced special education placements.
The initial Social Impact Bond (SIB) component of the program ran from 2013 to 2018, serving about 4,000 preschoolers during that period. Due to the programs proven effectiveness, the Utah Legislature decided in 2014 to take over funding after the initial five-year period.
Pros
Allowed for the expansion of high-quality preschool opportunities for low-income children without upfront costs to taxpayers.
Provided a stable, multi-year funding structure that allowed providers to plan and implement their work strategically.
Led to the creation of a School Readiness Restricted Account by Utahs legislature, potentially supporting similar future initiatives
Cons
Some educational experts raised questions about the integrity of the causality data used to determine program success
The complex structure and requirements of social impact bonds can add layers of administration and management to program delivery
The focus on evidence-based models may potentially exclude truly innovative, promising programs that lack extensive prior implementation
Partners
Granite and Park City School Districts
Guadalupe Charter School
Voices for Utah Children
Childrens Express and Litl Scholars
YMCA of Northern Utah
Utah State University
Park City Community Foundation
J.B. Pritzker
Goldman Sachs Urban Investment Group
United Way of Salt Lake
Salt Lake County