Senate District 7
Steve Wilson
Wilson Urges Senate Colleagues to Invest in Success with ResultsOHIO
May 21, 2019
COLUMBUS—State Senator Steve Wilson (R-Maineville) today stood before the Senate Finance Committee to give sponsor testimony on Senate Bill 122, which aims to expand pay for success initiatives by maximizing public-private partnerships while investing only in effective programs and strategies to tackle a variety of public policy issues facing Ohioans.

“Issues such as infant mortality and addiction have distressed our communities here in Ohio,” said Wilson. “By leveraging private sector resources and innovation through investment approaches, we can ensure our resources are better used to improve outcomes.”

Policy makers are often asked to provide upfront funding for programs that have little evidence of effectiveness. In the pay for success model, private sector dollars are leveraged to initiate a project rather than public sector dollars. That private sector investment is backed by a performance contract with the government.

"In over 40 years in the banking industry, I never saw a successful investor who poured money into unsuccessful or unproven business models," said Wilson. "Despite our best intentions, government frequently uses taxpayer dollars on ineffective strategies with the hope that if we throw enough money at a problem it will be corrected. The reality is we need to pay for results—not good intentions—and this bill will help us expand our efforts in the right direction."

The performance contracts specify what results must be achieved during a set period of time in order to grant public sector funding support. In addition, an independent third party data validator serves to ensure that project results meet the requirements of the performance contract.

If project results meet the performance objectives, contracts generally stipulate that public sector dollars will pay back the project participants at a level that would allow some return on investment be paid to the private sector investors. If a project fails to meet the contracted objectives, taxpayers do not pay for the project and the private sector partner is left to bear the project’s costs.

"I look forward to continuing our work with Treasurer Sprague to put us on a different path forward for Ohio—a path where private sector ingenuity and efficiency drives governmental investment decisions based on real, proven results," added Wilson. "Taxpayer dollars should be used exclusively on programs that work, not halfheartedly for uncertain outcomes."For more information on Senate Bill 122, please contact Senator Wilson's office at (614) 466-9737 or
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