Mr. Speaker, the Social Innovation Fund, operated out of the Corporation for National and Community Service, provides competitive grants to highly-successful non-profit organizations. In my district, the United Way for Southeastern…
Mr. Speaker, the Social Innovation Fund, operated out of the Corporation for National and Community Service, provides competitive grants to highly-successful non-profit organizations. In my district, the United Way for Southeastern Michigan was selected as a Social Innovation Fund grantee and is using its funding to develop promising, evidence-based solutions focused on replicating early childhood learning communities. The Social Innovation Fund uses a unique federal funding model that requires all grantees and sub-grantees to match federal resources 1:1, thereby increasing the return on taxpayer dollars and strengthening local support. In addition, it relies on outstanding existing grant-making intermediaries to select high-impact community organizations rather than building new government infrastructures. It also emphasizes rigorous evaluations of program results.
The Social Innovation Fund is proof that by focusing our limited resources on those organizations and programs that are proven to be successful can reap tremendous results for our country. In my own state, the Social Innovation Fund has provided the United Way for Southeastern Michigan with $4 million over two years, or over $12 million with the required match, to build on the expertise of its partnering organizations and facilitate the development of a portfolio of replicable early childhood learning communities in 10 underserved communities in metro Detroit and surrounding areas. They have a track record of using evidence to select grantees, validate programs, and support the replication and expansion of programs. The United Way for Southeastern Michigan is replicating and expanding its program from five sites, impacting 280 children, to twenty-nine sites, impacting 12,000 children. In addition, they are using the funding for a four- year longitudinal evaluation of its current early childhood grantees to measure the extent to which the program intervention improves school readiness.
I want to highlight this emphasis on evaluation and the use of evidence in picking the grantees for the Social Innovation Fund. Last month, the Office of Management of Budget released a memorandum that encourages the use of both evaluation and evidence in the government's decisions around the FY 14 budget process, which I am introducing into the Congressional Record. This similar commitment to evidence-based models and evaluation not only benefits the United Way for Southeastern Michigan by making them eligible for unique funding streams, but also puts them on the leading edge of change in the Federal Government's commitment to `fund what works.'
Executive Office of the President,
Office of Management and Budget,
Washington, DC, May 18, 2012.
memorandum to the heads of executive departments and agencies
From: Jeffrey D. Zients, Acting Director.
Subject: Use of Evidence and Evaluation in the 2014 Budget.
Since taking office, the President has emphasized the need
to use evidence and rigorous evaluation in budget,
management, and policy decisions to make government work
effectively. This need has only grown in the current fiscal
environment. Where evidence is strong, we should act on it.
Where evidence is suggestive, we should consider it. Where
evidence is weak, we should build the knowledge to support
better decisions in the future.
Agencies should demonstrate the use of evidence throughout
their Fiscal Year (FY) 2014 budget submissions. Budget
submissions also should include a separate section on
agencies' most innovative uses of evidence and evaluation,
addressing some or all of the issues below. Many potential
strategies have little immediate cost, and the Budget is more
likely to fund requests that demonstrate a commitment to
developing and using evidence. The Budget also will allocate
limited resources for initiatives to expand the use of
evidence, including but not limited to approaches outlined
below. Agencies may include these initiatives in their
submission at the guidance level or with proposed addbacks.
1. Proposing new evaluations. As in 2011 and 2012, OMB
invites agencies to propose new evaluations. Areas of
potential focus may include the following:
Low-cost evaluations using administrative data or new
technology: As explained in the Coalition for Evidence-Based
Policy's recent brief, agencies can often use administrative
data (such as data on wages, employment, emergency room
visits or school attendance) to conduct rigorous evaluations,
including evaluations that rely on random assignment, at low
cost. Similarly, the private sector has used new software and
online tools to dramatically reduce the time and cost of
experimentation. Agencies should consider whether they can
use such data or technology to support rigorous evaluations
of their existing programs or new initiatives.
Evaluations linked to waivers and performance partnerships:
One of the best ways to learn about a program is to test
variations and subject them to evaluation, using some element
of random assignment or a scientifically controlled design.
OMB invites agencies to explain how they will use existing
waiver authorities to evaluate different approaches to
improving outcomes. Agencies should also consider seeking
authority from Congress, through the FY 2014 budget process,
to allow new waivers linked to evaluation or to establish
cross-agency ``performance partnerships'' that enable
blending of multiple funding streams to test better ways to
align services and improve outcomes. Several agencies are
seeking such authority in 2013 for initiatives supporting
distressed communities and disconnected youth.
Expansion of evaluation efforts within existing programs:
In addition to specifying evaluations to be performed with
dedicated funding, agencies can also add a general policy and
requirements favoring evaluation into existing grants,
contracts, or waivers. These measures may require new
legislation. For example, Congress recently approved the
Department of Labor's request for a small cross-agency set-
aside for evaluation activities.
Systemic measurement of costs and cost per outcome:
Agencies are encouraged to include measurement of costs and
costs per outcome as part of the routine reporting of funded
programs to allow for useful comparison of cost-effectiveness
across programs.
Agencies should release evaluations promptly through either
their agency websites or alternative means. OMB particularly
welcomes agency proposals to improve public access to, and
understanding of, evidence about what works and what does
not.
2. Using comparative cost-effectiveness data to allocate
resources. Through the Pew Charitable Trust's Results First
initiative, a dozen States are currently adopting a model
developed by the Washington State Institute for Public Policy
(WSIPP) that ranks programs based on the evidence of their
return on investment. Once evidence-based programs have been
identified, such an analysis can improve agency resource
allocation and inform public understanding. For example, the
Environmental Protection Agency and the U.S. Department of
Agriculture are working together to incorporate evidence
about the cost-effectiveness of different pollution control
strategies in the Chesapeake Bay restoration effort.
OMB invites agencies to identify areas where research
provides strong evidence regarding the comparative cost-
effectiveness of agency investments. The research may pertain
to the allocation of funding across agency programs (e.g.,
research showing that some funding streams have higher
returns on investments) or within programs (e.g., research
showing that some types of grantees or programmatic
approaches have higher returns). Agencies should describe the
body of research and then apply its results to support a
proposed resource reallocation. OMB is more likely to support
an existing resource allocation or a request for new
resources supported in this way, and may feature the agency's
reasoning in the 2014 Budget.
3. Infusing evidence into grant-making. Grant-making
agencies should demonstrate that, between FY 2013 and FY
2014, they are increasing the use of evidence in formula and
competitive programs. Agencies should consider the following
approaches, among others:
Encouraging use of evidence in formula grants: OMB invites
agencies to propose ways to increase the use of evidence-
based practices within formula grant programs. For example,
formula funds can be conditioned on the adoption of evidence-
based practices, and high-quality technical assistance can be
used to share and support implementation of evidence-based
practices. Competitive programs can assign points to
applicants based on their integration of such practices into
formula streams.
Evidence-based grants: Several agencies--ranging from the
Department of Education to the U.S. Agency for International
Development--have implemented evidence-based grant programs
that apply a tiered framework to assess the evidence
supporting a proposed project and to determine appropriate
funding levels. Under this approach, programs supported by
stronger evidence, as established in a rigorous agency
process, are eligible for more funding. All programs are
expected to evaluate their results. Examples of tiered-
evidence programs include the Department of Education's
Investing in Innovation program and the Department of Health
and Human Services' Teen Pregnancy Prevention and Home
Visiting programs.
Even without creating tiers, agencies can provide points or
significant competitive preference to programs that the
agency determines are backed by strong evidence, and can
build the evidence base by embedding evaluation into
programs. Because running evidence-based programs requires
more resources, agencies may wish to combine multiple smaller
programs into larger, evidence-based efforts.
Pay for Success: Taking the principle of acting on evidence
one step further, the Departments of Justice and Labor will
be inviting grant applicants to use a ``pay for success''
approach, under which philanthropic or private entities (the
``investors'') pay providers upfront and are only repaid by
the government if certain outcomes are met. Payment amounts
are based, in part, on the amount that the Federal, State, or
local government saves. A pay-for-success approach is
appropriate where: (i) improved prevention or other up-front
services can produce better outcomes that lead to cost
savings at the Federal, State, or local level; and (ii)
foundations or others are willing to invest.
To date, the Administration has focused its Pay for Success
planning on programs financed with discretionary
appropriations. OMB invites agencies to apply a pay-for-
success model for programs funded by either discretionary or
mandatory appropriations. Agencies should also consider using
the new authority under the America COMPETES legislation to
support incentive prizes of up to $50 million. Like Pay for
Success, well-designed prizes and challenges can yield a very
high return on the taxpayer dollar.
4. Using evidence to inform enforcement. Rigorous
evaluation of strategies for enforcing criminal,
environmental, and workplace safety laws often reveals that
some approaches are significantly better than others at
securing legal compliance. OMB encourages agencies to
indicate how their allocation or reallocation of resources
among enforcement strategies is informed by such evidence.
5. Strengthening agency evaluation capacity. Agencies
should have a high-level official who is responsible for
program evaluation and can:
Develop and manage the agency's research agenda;
Conduct or oversee rigorous and objective studies;
Provide independent input to agency policymakers on
resource allocation and to program leaders on program
management;
Attract and retain talented staff and researchers,
including through flexible hiring authorities such as the
Intergovernmental Personnel Act; and
Refine program performance measures, in collaboration with
program managers and the Performance Improvement Officer.
These goals can be accomplished by different kinds of
leaders, ranging from a chief evaluation officer who reports
to the Secretary or Deputy Secretary to the head of an
independent institute in the agency. An existing official
could play the role, or a forceful new position could replace
several less empowered ones. OMB invites agencies to propose
in their budget submissions ways to strengthen the agency's
evaluation capacity, within tight resource constraints.
support for evidence-based initiatives
OMB invites your agency to participate in a number of
forums to improve use of evidence:
OMB and the Council of Economic Advisers will organize a
series of topical discussions with senior policy officials
and research experts in the agencies. The meeting agendas
will focus on administrative and policy levers for driving an
increasing share of Federal investments into evidence-based
practices. We will plan summer meetings in order to help
inform agencies' evaluation plans and budget submissions, and
will also have follow-up meetings in the fall.
OMB will reinvigorate the interagency evaluation working
group established in 2010 with a series of meetings focused
on issues commonly affecting evaluators, such as procurement
rules, the Paperwork Reduction Act, and the integration of
evidence in agencies' decision-making process.
The Performance Improvement Council will convene research,
performance management, and program officials to develop ways
to improve performance measures, validate their correlation
with outcome data from program impact evaluations, and use
data analytics to support more cost-effective decision-
making.
The Office of Science and Technology Policy has created a
``community of practice'' for agency personnel involved in
designing and managing incentive prizes and has organized a
Science of Science Policy working group that is developing
tools aimed at establishing a more scientific, empirical
evidence basis for science and technology policymaking.
To discuss which ideas in this memo make most sense at your
agency, please contact your agency's OMB contact. For more
general support on evidence-based policy and evaluation, you
also may contact Dan Rosenbaum (Dan T.
[email protected]).