BIRMINGHAM, Ala. – Alabama lawmakers on Tuesday finalized the state’s education spending plan for next year, after the House agreed to Senate changes.
Lawmakers signed off on a $10.5 billion FY27 Education Trust Fund budget, a $420 million supplemental appropriation available to spend during the current fiscal year, and a separate $1 billion Education Advancement and Technology Fund allocation also available to spend during the current fiscal year.
In the main FY27 ETF budget, lawmakers included $86.25 million for CHOOSE Act education savings accounts – $85 million for education savings account awards and $1.25 million for the Department of Revenue to administer them.
The supplemental bill also includes a separate $100 million appropriation from the CHOOSE Act Fund to the Department of Revenue, money available to pay ESA awards for the 2026-27 school year.
The final ETF budget also includes a 2% pay raise for educators and a conditional $32.9 million appropriation for a one-time bonus for retired educators.
Lawmakers tweaked the RAISE Act weights used to allocate additional funding to help students facing certain challenges. The poverty weight increased from 2.25% to 2.75%, the Tier I special education weight rose from 2% to 2.5%, and the gifted student weight increased from 4.5% to 4.75%. Other weights, including those for English learners and higher tiers of special education, remained unchanged.
The $420 million supplemental appropriation provides one-time spending for the current fiscal year, sending money to K-12 and higher education programs, school safety and technology needs along with a range of earmarks for education-related initiatives.
The package also includes a $500 million transfer from the Educational Opportunities Reserve Fund to support RAISE Act funding and the new CHEER Fund, which provides $65 million in performance-based funding for eligible colleges and universities.