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FOR IMMEDIATE RELEASE
April 11, 2017
Governor Mary Fallin Announces Oklahoma's First-ever Pay for Success Contract Addressing Female Incarceration
New Financing Approach
Part of Ongoing Criminal Justice Reform Efforts
OKLAHOMA
CITY — Governor Mary Fallin today announced that the state of Oklahoma and Tulsa-based Family & Children’s Services
(F&CS) have entered into a groundbreaking Pay for Success (PFS) contract
aimed at reducing Oklahoma’s nation-leading female incarceration rate by
securing public-private investment in the successful Women in Recovery (WIR) prison
diversion program. This project will enable WIR to expand its services,
admitting up to 125 women into the program annually for up to five years.
Pay
for Success is an innovative funding model that combines nonprofit expertise,
private funding, and independent evaluation to transform how government leaders
respond to chronic social issues. Through PFS, funders provide the upfront
capital to scale effective service providers. Government agrees to repay
funders if and when the project achieves its desired impact. Through this PFS
contract, the state will repay only if WIR program participants are not
incarcerated in the Oklahoma Department of Corrections (DOC).
“Government
too often pays for programs that it hopes work, but under this arrangement,
government will pay for what works,” said Fallin. “Women in
Recovery is a cost-effective alternative that improves public safety and helps
preserve Oklahoma families. Through this agreement, the state will partner with
private entities to expand its success and reduce Oklahoma’s unacceptable
female incarceration rate in the process.”
The first PFS project was launched in Peterborough, United Kingdom, in
2010 and was aimed at reducing prisoner recidivism. Today there are more than
70 projects in 18 countries, with 16 projects in the U.S. The model has attracted strong
bipartisan support due to its focus on evidence-based policymaking and the
achievement of outcomes. The contract between the Office of Management and
Enterprise Services (OMES) and F&CS is the 17th PFS contract in
the U.S. and the first PFS contract focused on female incarceration.
“Our
hope is for this arrangement to pave the way for more like it in the future
that give taxpayers a far better return on their dollar than traditional
government programs do. Government service delivery innovations like Pay for Success
are always appropriate, especially in times of fiscal duress like we have
today,” said Secretary of Finance, Administration and Information Technology
Preston L. Doerflinger, who is director of OMES.
The
state requires F&CS to secure at least $2 million in capital to fund the
program each year before the contract can be renewed. To reduce financial risk
for the state and to assure continued financial solvency of WIR, the George
Kaiser Family Foundation (GKFF) will also continue to provide its current
commitment of $1.8 million a year to services to address female incarceration
in Tulsa County, including WIR. The use of philanthropic funding from GKFF allows
for payments from the state to be re-invested directly back into a successful
program, as outcomes are achieved.
“We
are thrilled to see completion of this historic agreement that motivates
philanthropy, nonprofit and government to work together, in pursuit of better
outcomes,” said Ken Levit, executive director of GKFF.
The
adoption of the Pay for Success model transfers risk from the state to the
private sector, in pursuit of preventive programs that hold promise for
long-term cost savings and social benefits.
Social
Finance, a nonprofit organization with deep experience designing and managing PFS
projects, served as project advisor.
“Pay
for Success helps drive resources to effective programs that serve some of our
society’s most vulnerable communities,” said Tracy Palandjian, chief executive
officer and co-founder of Social Finance. “Pay for Success is essentially about
ensuring value for taxpayers—not only because government just pays for programs
that make an impact, but also because these projects encourage investments in
prevention. That’s smart government at work.”
The
PFS project was made possible by Senate Bill 1278, which Fallin signed into law
in 2014. The bill, authored by Sen. Kim David, R-Porter, and Rep. Leslie
Osborn, R-Mustang, gave the state the ability to take new approaches to
criminal justice programming by authorizing OMES to enter into PFS contracts
with qualified criminal justice service providers.
The
contract presents no financial risk to the state, which was particularly
appealing to state officials at a time of budget challenges. Payments are only
made for successful program outcomes.
Additionally, the total payments made for a successful program outcome
are considerably less than the direct costs of incarceration and the costs of
all of the documented negative future impacts of incarceration on employment,
health, family stability and social assistance.
“Since
we established the program in 2009, Women in Recovery has served more than 570 women
impacting the lives of more than 1,200 children. Through trauma informed,
gender-responsive treatment combined with evidenced-based programming, we are
able to transform the lives of WIR women and, their families. They return to
their communities more productive and able to provide for themselves and their
children,” said Mimi Tarrasch, senior executive program director of WIR. “This
contract is a great step forward for funding effective alternatives to
incarceration.”
About Women in Recovery
Established in 2009, Women in Recovery (WIR) is an intensive,
outpatient alternative for eligible women facing long-term prison sentences for
drug-related offenses. WIR equips women with the skills they need to become
productive members of society. The program works closely with the criminal
justice system and multiple community partners to ensure program participants
receive supervision, substance abuse and mental health treatment, work force
readiness training and assistance with parent-child reunification.
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