Why Cost-Benefit Analysis Matters
In the current fiscal environment, most states face tough budget choices and lack the resources to support traditional levels of public services. Increasingly, policy makers seek programs and policies that yield the greatest benefits in the most cost-effective way. Rigorous analysis of available research can help state leaders:
- Systematically identify which programs work and which do not;
- Calculate potential returns on investment of funding alternative programs;
- Rank programs based on their projected benefits, costs, and investment risks;
- Identify ineffective programs that could be targeted for cuts or elimination; and
- Predict the impact of different policy options.
What Policy Makers Say about Cost-Benefit Analysis
Republican and Democratic leaders in Washington State report that this new approach, developed by the Washington State Institute for Public Policy, has helped produce bipartisan policies that improved results while saving more than a billion dollars.
"I came from the business sector where we relied on evidence on what was a good investment. In the legislature, I realized we needed to do the same thing. Otherwise, you make decisions based on opinions and anecdotes or one person’s favorite study that may be the exception."
—Skip Priest (R), former ranking Republican, Washington State House Committee on Education
"We have research showing ways to lower the crime rate and save money by investing in preventing crime in the first place. It has allowed us to consider policies that are the most effective even if they don’t sound like a sound bite."
—Senator Jim Hargrove (D), chair, Washington State Senate Committee on Human Services and Corrections
How We Conduct Our Work
We offer tools to states that more accurately assess the true costs and benefits of public programs. This allows policymakers to identify options that yield the greatest return on investment for taxpayers.
We also help states build a climate for decision-making based on research and evidence. This allows states to eliminate ineffective programs and shift resources to those that generate better outcomes for their citizens.
Results First in Your State
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The LATEST from the Project
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June 17, 2013
Results First Webinar
This webinar provides an overview of cost-benefit analysis in criminal justice policy and describes the Results First approach.
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- Media Coverage
- Pew-MacArthur Results First Initiative
Providence Business News: R.I. to Participate in Results First Initiative
Rhode Island has been selected as the 14th partner state in the Pew-MacArthur Results First Initiative, a program that helps states assess the costs and benefits of fiscal policy options and make better decisions based on informed results, Gov. Lincoln D. Chafee announced. more
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- Media Coverage
- Pew-MacArthur Results First Initiative
Providence Journal: Gov. Chafee: R.I. Selected for 'Results First' Program of Data-Driven Policy Making
Rhode Island has been selected for the Pew-MacArthur Results First Initiative, which helps states look at costs and benefits before making policy decisions. more
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- Press Release
- Pew-MacArthur Results First Initiative
Governor Lincoln D. Chafee Announces Rhode Island's Participation in Pew-MacArthur Results First Initiative
Providence, RI - Governor Lincoln D. Chafee announced today that Rhode Island has been selected as the 14th partner state to participate in the Pew-MacArthur Results First Initiative, which helps states assess the costs and benefits of policy options and use that data to make decisions based on results more
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July 26, 2012
Better Programs, Better Results
This case study focuses on quality assurance monitoring in juvenile justice programs in Washington state—which has led the way in using cutting-edge cost-benefit analysis to guide its budget and policy choices. more
