New Help for Pre-School Education
At the November 5th City Council meeting, the Council approved the issuance of $17 million dollars in "Social Impact Bonds" to fund additional pre-school classes for nearly 3,000 under-served children. After much study, I voted in favor of this measure, as it provides funding for a vital, and yet currently underserved, component of public education throughout the City and represents an investment in our City's future.
The State of Illinois does not mandate pre-kindergarten education, yet studies consistently show that pre-school education, particularly that which engages parents as well, improves school readiness. In the face of the general underfunding of all education, Mayor Emanuel and CPS took action to introduce a creative initiative that expands this important component of a child's education.
While the cost was minimal - only $17 million over a four-year time period - this transaction is unusual because the funding funding source is a loan from a private investment fund.
The transaction, is however, structured so that the loan will only be repaid if - and only if - the program yields discernable, positive increases in objective measures in 3rd grade literacy and kindergarten readiness, as well a cost savings in special education. To put it simply, should this program not yield net positive increases in childhood educational readiness, the lenders will not be repaid.
Prior to casting my vote, I carefully studied the issue and came to the conclusion that this is a modest experiment in alternative financing that has the potential to yield immense gains for our City.
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