“This record contains private information, which has been redacted from public viewing.”
As I have been reporting here, Pay for Success is a function of the expanding scheme of Social Impact Bonds (SIBs).
Wall Street investors like Goldman Sachs are paid profits for investing in social programs such as prison recidivism and special education.
In the case of special education, Goldman Sachs is paid for each child that does not receive special education services – what Pay For Success considers a success.
The criteria for success is not based on federal and state guidelines and requirements for assessing special education services, but on criteria established between the lender and CPS.
The evaluator will measure “kindergarten readiness” through an assessment that’s already used in CPS preschools. For each child in the “treatment group” who performs at or above the national average on at least five of the six sections of the assessment, the city will repay lenders $2,900. The city projects half of the children will score high enough to trigger the payments.
Meanwhile, third-grade literacy will be measured using the Partnership for Assessment of Readiness for College and Careers (PARCC), a new test to which CPS is transitioning this year. The new assessment is aligned to the controversial Common Core State Standards and is considered more rigorous than current state tests.
The projections indicate that half of third-graders will be at “grade level,” meaning they score at or above the 25th national percentile on reading portions of the PARCC. Under the agreement, the city will pay lenders $750 for each child that meets that benchmark.
The ordinances allowing the City of Chicago and CPS to issue Pay for Success SIBs were sponsored by Aldermen Thomas, Moreno, Ervin, Balcer, Suarez, and Mitts.
But was all mention of Goldman Sachs redacted from the ordinances when they were published by Susan Mendoza on the City Clerk’s web site?