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The Institute for Child Success(ICS)studied the feasibility of using Pay for Success(PFS) financing, an innovative mechanism, to improve outcomes foryoung childrenin Evansville, Indiana.PFS financing, also called "Social Impact Bonds," can bring new resources, new partners, and a new focus on outcomes to early childhood services.Evansville was one of fourjurisdictions selected to receive technical assistance from ICSin 2016 through the U.S. Social Innovation Fund’s PFSprogram. The feasibility study focused on expanding high-quality pre-kindergarten (pre-K)through the existing On My Way Pre-K(OMW) program forfour-year-olds.The study concluded that Evansville has high-quality pre-Kprogramsthat it could feasibly expand to improve outcomes for children from low-income families. Benefits of investing inhigh-quality pre-K significantlyexceed the costs.Though PFSis not a feasible way to finance pre-Kexpansionimmediatelyin Evansville, it could beviable in two to fouryears if the Cityfullyimplementedappropriate measurement tools andcollected datato establish baselines and project impact on outcomes that would be part of a PFScontract.This Executive Summary accompanies a presentation of the feasibility study findings. (the need)Evansville is located in southwest Indiana, borderingthe state of Kentucky. The population of about 120,000 makes it the third largestcity in Indiana. Roughly 4,500,threeand four-year-olds live in Vanderburgh County (most of whom live in Evansville);almost half qualify for free or reduced-price school lunch ($44,955annual household income for a family of four). Evansville is eager to improve the lives and futures of the 17%of children who do not read at grade level at third gradeandthe 21%who do not graduate from high school,andtoexpand the city’s skilled workforce and economy.PRE-K IN EVANSVILLEPre-K in Evansville is provided through the public school system, private centers (nonprofit and for-profit), and family child-care homes. Evansville is currently a pilot location for the state-funded OMW program, which funds pre-Kslots for low-income four-year-olds (those at or below 127%of
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