MS SB2487

Establishes the Pay for Success Contracts Program in the Department of Finance and Administration to authorize contracts with lead contractors who provide educational and youth development services based on performance outcomes.

Requires contracts to clearly define program-eligible interventions, specific performance targets, evaluation procedures by an independent evaluator, and success payments only if defined performance targets are achieved.

Limits intervention provision to a maximum of seven years unless performance targets are met within that period, with payment obligations subject to annual legislative appropriation.

Creates the Pay for Success Contracts Fund in the State Treasury, funded by monies appropriated due to state spending reductions from successful programs and other legislative appropriations, to pay lead contractors and administrative costs.

Allows one or more local school districts to become additional parties to contracts with the approval of the Department of Finance and Administration and the lead contractor, with allocation of payment responsibilities specified in the contract.