President Bolsters Evidence and Innovation Agenda in FY 2016 Budget

The Obama evidence and innovation agenda took several steps forward in the president’s proposed FY 2016 federal fiscal budget, released earlier today.

Highlights include the following:


Pay for Success (PFS)

The budget proposes $364 million for new pay-for-success projects, the centerpiece of which is a proposed $300 million Pay for Success Incentive Fund at the Department of the Treasury, similar to bipartisan legislation introduced last year in the House and Senate and expected to be reintroduced again later this month. The budget proposes another $64 million for pay-for-success initiatives in the Departments of Education and Justice and at the Social Innovation Fund (see this fact sheet).

The proposed SIF funding would, if enacted, be the third round of PFS funding for that program. The first round of grants was announced late last year. A second round was funded by the omnibus budget bill enacted in December and is likely to be announced by SIF later this year.

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Posted in Evidence, Government Performance, Social Impact Bonds / Pay for Success

Peter Orszag and John Bridgeland Discuss Evidence-based Policy Developments

Peter Orszag, former director of the Office of Management and Budget under President Obama, and John Bridgeland, former director of the White House Domestic Policy Council under President Bush, discuss recent developments on evidence-based policy at the Aspen Institute on January 21.

Nice follow-up to last month’s event (video) at Brookings on Show Me the Evidence by Ron Haskins and Greg Margolis.

Posted in Evidence

Social Innovation Fund Opens 2015 Grant Competition

The Social Innovation Fund (SIF) announced a new grant opportunity today. SIF will make $40 million available to winning grantmakers, with each receiving $1-10 million annually for five years.

Applications are due March 17. Successful applicants will be notified in July.

SIF is reserving another $11 million for current grantees and will likely announce another round of pay-for-success grants later this year.

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Posted in Social Innovation Fund

Will Social Innovation Become a 2016 Presidential Campaign Issue?

Anti-poverty issues and income inequality may be becoming presidential campaign issues if the rhetoric coming from potential 2016 aspirants in recent days is any gauge. Will evidence-based social policy and innovation rise along with them?

The talk began with the GOP’s 2012 presidential nominee, Mitt Romney, who has strongly signaled over the past few days that he is considering a 2016 presidential race. According to a report in Politico:

Romney, who made a fortune in the financial sector and was cast by Democrats in 2012 as a heartless businessman, wants to make tackling poverty — a key issue for his 2012 vice presidential running mate, Rep. Paul Ryan — one of the three pillars of his campaign.

Romney is not alone. Several other potential candidates also appear to be adopting economic inequality as a campaign talking point. Such statements may be a mixed blessing, raising the profile of poverty and income inequality issues, but also politicizing them in advance of a presidential campaign year.

But in the aftermath of the president’s State of the Union speech earlier this week, Ryan himself struck a different tone. According to The New York Times:

Representative Paul D. Ryan of Wisconsin, the Ways and Means chairman and perhaps the Republican Party’s leading voice on poverty issues, praised the president’s “gifted speech” on MSNBC’s “Morning Joe” and said he was glad Mr. Obama had “dialed down on the partisan class-warfare rhetoric.”

Mr. Ryan said accord could be reached on ways to reduce poverty by expanding the earned-income tax credit to childless adults, as he and the president have proposed, and drafting a public works bill aimed at modernizing an aging infrastructure.

“I just hope that the tone continues that makes it easier for us to reach common ground,” Mr. Ryan said.

Ryan said on Monday that he would not be seeking the presidency in 2016, preferring instead to focus on his work as chairman of the House Ways and Means Committee.

Ryan released a major anti-poverty plan last summer that contains several performance and evidence-based proposals. As chairman of the House Ways and Means Committee, he is expected to move legislation, informally dubbed “Welfare Reform 2.0,” in the current session of Congress.

Feb 5 Update

While Mitt Romney has announced that he will not be seeking the presidency, Jeb Bush is among those who have picked up the focus on helping the poor. According to a story published today in Politico:

“We have a record number of Americans on food stamps and living in poverty,” Bush told the Detroit Economic Club on Wednesday in his first major policy speech since he got serious about running for president. “The opportunity gap is the defining issue of our time. More Americans are stuck at their income levels than ever before. It’s very hard for people to go from the bottom rungs of the economy to the top. Or even to the middle. This should alarm you.”

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Posted in Politics

Building Evidence in Human Services: An Interview with ACF’s Naomi Goldstein

While many federal agencies have been building and increasing their use of research-based evidence in funding and other policy decisions, the Administration for Children and Families (ACF) is considered one of the leaders.  Programs within ACF’s purview are wide-ranging, including Head Start, child care, child support, child welfare, adolescent pregnancy prevention, and many others.

How is evidence being built and used for these programs? Where are these programs headed?  We asked Naomi Goldstein, Director of ACF’s Office of Planning, Research and Evaluation (OPRE).


SIRC:
Let’s start with the big picture. Very early on, the Obama administration made a point of emphasizing evidence in federal programs, including both building the existing evidence base and using that evidence where it is available. Earlier this year, your office published an updated evaluation policy in the Federal Register that reflected that same dual focus. Can you tell us more about ACF’s strategy for building and using evidence in its programs?

Naomi Goldstein: Actually ACF has a long history of building and using evidence under many administrations, with the longest track record in the areas of welfare and early childhood programs. A recent book called Fighting for Reliable Evidence describes “forty-five years of uninterrupted, large-scale random-assignment studies that assessed the effectiveness of [welfare] reform initiatives.” Full disclosure, the authors are Howard Rolston, my predecessor as director of ACF’s Office of Planning, Research, and Evaluation, and Judy Gueron, the former president of MDRC, a firm that has done many evaluations under contract to OPRE.

This history is worth mentioning for a few reasons. First, building knowledge to improve social programs is a long-term enterprise. While some questions can be answered quickly, in other cases evaluations may take years to plan and carry out. Just as important, really robust, useful knowledge requires ongoing portfolios of work, not just one-off investigations of isolated questions. Third, it takes time to develop both the capacity for rigorous, relevant evaluation, and a broad culture that values evidence. ACF has been recognized by the Government Accountability Office as an agency with a “mature evaluation capacity” and an “evaluation culture.”

It’s because of that history, capacity, and culture that ACF and OPRE have been able to respond to the administration’s emphasis on evidence. In the last several years we have taken on new activities related to teen pregnancy prevention, home visiting, health professions training pathways for low-income people, and other areas. Ron Haskins and Greg Margolis of the Brookings Institution pointed this out in their recent book, Show Me the Evidence, when they noted that “OPRE was well suited for the evaluation role [in home visiting] because of its long history of rigorous evaluation.”

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Posted in Children and Families, Evidence

Top Social Innovation Reads of 2014

To close out the year, here are SIRC’s “Top Social Innovation Reads of 2014.”  Happy holidays everyone!

Reports

Books

To receive links to the latest reports as they happen, consider following SIRC on Twitter or subscribing to SIRC’s email list, both of which can be found to the right.

Posted in Government Performance

Could Federal Ratings Be Applied to Human Service Providers?

Could draft federal ratings for colleges and universities, released by the U.S. Department of Education on December 19, become a model for human service providers?  At first glance, the sheer difficulty of the task, combined with a lack of time remaining in President Obama’s last term in office and likely pushback from organizations representing providers, suggests that the answer is no, at least not soon.

But broader consideration of parallel developments in health care, K-12 education, and Head Start, along with possible congressional work on welfare reform next year, suggests that something very similar may come much sooner than expected.


The Proposed Higher Education Ratings System

The administration’s draft federal ratings for colleges and universities are an illustrative case study.  Spurred by skyrocketing tuition and fees that have increased 231 percent in inflation-adjusted terms at public four-year colleges since 1983, President Obama announced in 2013 that his administration would issue federal ratings for colleges and universities by the start of the 2015-16 school year.

The resulting draft framework, released earlier this month, includes proposed measures in three broad categories:

  • Greater College Access: Proposed metrics include the percentage of enrolled students who receive federal Pell grants and/or the number who are the first generation in their families to attend college.
  • Affordability: Proposed metrics include the average net price of fees and tuition and average school loan debt for enrolled students.
  • Improved Educational Outcomes:  Proposed metrics include college completion rates, graduate school attendance, employment and wage outcomes, and loan repayment and default rates.

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Posted in Children and Families, Government Performance, Performance Management

Pay-for-Success Update: SIF Grantees Open PFS Competitions, New Projects in Ohio and Massachusetts

Pay-for-success appears to be continuing its steady forward momentum. Recent developments over the past month include:


Social Innovation Fund Pay-for-Success Competitions: 
Most of the eight intermediaries funded through the Social Innovation Fund’s pay-for-success grants have opened their competitions for technical assistance subgrants. Links to the organizational grant pages are below. Additional background information about SIF’s pay-for-success program can be found in SIRC’s November report.


Supportive Housing for the Homeless Project in Massachusetts: 
On December 8, the state of Massachusetts announced a new pay-for-success project that will provide 500 units of supportive housing for up to 800 of the state’s estimated 1,500 chronically homeless. The project will fund housing services by members of the Massachusetts Housing and Shelter Alliance, which will be implementing an intervention called the Home & Healthy for Good model. According to a report released by the Alliance in June, the model is expected to reduce annual medical, housing, and incarceration costs for program recipients by an estimated $9,118 per person.

According to a state press release, the project will leverage $3.5 million in philanthropic and other private funding. Funders include the Corporation for Supportive Housing (CSH), United Way of Massachusetts Bay and Merrimack Valley, and Santander Bank.

Repayments by the state will be based on the number of homeless individuals who stay in supportive housing for at least a year. The maximum return to investors will be 5.33 percent, but total payments could reach $6 million, including the cost of evaluations and intermediaries.

This is the latest of at least three pay-for-success projects in Massachusetts being operated under its $50 million Social Innovation Financing Trust Fund. In January, the state announced a $27 million juvenile justice project. In August, it announced a $15 million adult basic education project intended to increase employment and postsecondary degree attainment for 16,000 adults.


Foster Care Project in Cuyahoga County, Ohio: 
On December 3, Cuyahoga County announced a 5-year, $4-5 million pay-for-success program to reduce time spent in out-of-home care by foster children. The initiative will fund housing placement and mental health services for mothers who have been in homeless shelters. Up front funding to FrontLine Services, which is providing the services, will come from The Reinvestment Fund, The George Gund Foundation, The Cleveland Foundation, Sisters of Charity Foundation of Cleveland and Nonprofit Finance Fund. The county will repay the investors $75 for each day of reduced out-of-home care.


White House Regional Pay-for-Success Summits: 
The White House is cohosting regional pay-for-success learning summits with the Laura and John Arnold Foundation and the Nonprofit Finance Fund. Two have been held so far, one in Connecticut and another in Chicago. A third is scheduled to be held in Salt Lake City in January.

Posted in Social Impact Bonds / Pay for Success

Foster Care Innovation Initiative Charts a Different Path to Evidence

While momentum appears to be building for the increased use of evidence in social policy, the ride has occasionally been a bumpy one, with pushback both on and off Capitol Hill over the appropriate definition of evidence. Some fear that these disagreements — dubbed the “causal wars” — could derail the movement entirely.

One possible answer might be found in an Obama administration program intended to test new ways to find homes for the most disadvantaged children in the foster care system. The program, called the Permanency Innovations Initiative (PII), is similar to its better known cousins like the Social Innovation Fund and the Investing in Innovation (i3) program. Like them, it too is focused on building the social policy evidence base, but it is doing so in a different way.


The Causal Wars

Disagreements over what constitutes evidence in social policy have been occurring for years, with some arguing for the superiority of evaluations that include randomized controlled trials (RCTs), while others have argued for a broader evidence base (for an example, see The Evidence Debate). Reasons for these disagreements have ranged from disputes over the validity, ethics, and funding of various research methods to their impact on overall funding levels for social programs themselves. The arguments are sometimes quite heated, leading some to call them the “causal wars.”

One recent battle broke out in field of child welfare in 2011. That year, the Senate Finance Committee considered legislation that would have prohibited the use of RCTs in state-level child welfare demonstration projects. In the end, the proposed legislative language was watered down and the Children’s Bureau, which oversees such projects, was directed to remain neutral on whether they included RCT evaluations.

“The fact that the ability to mount RCTs in the evaluation of Title IV-E waiver demonstrations was nearly lost should serve as a wake-up call,” said Mark Testa, a professor at the University of North Carolina’s School of Social Work. “It’s time to negotiate a ceasefire in the causal wars.”

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Posted in Children and Families