The federal funding incentive structure for IV-D programs is dependent upon meeting federal performance goals in five key program areas (paternity establishment, support order establishment, current support, arrears collections and cost effectiveness) as well as improving performance and increasing TANF and non-TANF collections. Performance in these program areas and collections impact a state’s ability to generate federal dollars for its program.

A public-private partnership (also known as privatization and outsourcing) offers state and local agencies an effective means to maximize performance and efficiency, minimize operational constraints, and maximize funds based on performance. This approach also allows agencies to retain program oversight and public policy responsibilities while engaging private contractors to manage local operations. Through outsourcing, an agency can tap into a wealth of expertise and resources that can enhance program performance and customer service, enable better outcomes for children and families, and potentially secure more federal incentive funds.

Compelling reasons for public-private partnerships include the ability to:

• Increase program accessibility to the public
• De-politicize local operations
• Overcome challenges of economically disadvantaged jurisdictions
• Contain long-term costs
• Solve difficult structural issues
• Improve performance

Benefits of public-private partnerships include:

• Enhanced performance over time
• Improved customer service
• Greater flexibility and ability to adapt to change quickly
• Access to flexible technologies, best practices and innovative approaches
• Management expertise
• Increased ability of state focus on leadership with private sector execution

For a more in-depth discussion around the benefits of public-private partnerships, as well as considerations for developing an effective partnership and how to prepare for one, view our white paper.