BIRMINGHAM, Ala. – Alabama public schools spent more money per student last year, but rising costs wiped out the increase.
Newly released state spending records show schools spent an average of $13,629 per K-12 student during the 2024-25 school year, about $130 more than the previous year. After accounting for inflation, however, spending actually fell by about $102 per student.
That includes funding from state, federal and local sources. Capital spending is not included in the per student spending.
The figures come from fiscal year 2025 school spending reports released Oct. 20 by the Alabama State Department of Education.
But the statewide average doesn’t tell the whole story.
Of the 1,334 schools with comparable spending data for both years, 586 – nearly 44% – saw their inflation-adjusted spending per student decline by more than 1%. At some schools, the decline approached 40%.
At the same time, 624 schools – nearly 47% – gained more than 1% in purchasing power. Spending at the remaining 124 schools changed by no more than 1% in either direction.
Federal spending takes a big hit
One of the biggest changes was a steep drop in federal spending.
Federal expenditures fell by about $602 million, or 32%, from 2023-24 to 2024-25 among 1,342 schools with available financial data for both years.
The drop came as schools were wrapping up spending from billions of dollars in federal pandemic relief funding. The deadline for committing the final round of those funds was Sept. 30, 2024.
It’s not clear how much of the federal spending decline was directly tied to the end of pandemic relief, but the timing suggests it played a role.
State and local spending increased during the same period. State-funded expenditures rose by about $527 million, while spending from the local funding increased by about $199 million.
Those increases made up for much of the lost federal money, but they weren’t enough to prevent a slight statewide decline in spending power per student.
Schools are still spending more than before the pandemic
Despite the latest decline, Alabama schools are spending considerably more per student than they were six years earlier.
In 2018-19, schools spent an average of $9,887 per student. After accounting for inflation, that would be about $12,477 in today’s dollars.
By 2024-25, inflation-adjusted spending had increased about 9%.
Most of the gains came in the years following the pandemic, when schools were spending federal relief money and state education funding was increasing.
Spending reached the equivalent of $13,731 per student in 2023-24 before slipping to $13,629 in 2024-25.
How much did your school spend?
Spending varies widely from school to school, and more money per student doesn’t necessarily mean a school has more resources than its neighbors.
Small schools often spend more per student because they have many of the same operating costs as larger schools, but fewer students to spread those costs across.
Schools serving students with significant disabilities or providing specialized programs can also have higher costs.
Poverty may affect school funding as well, although the relationship between poverty and spending requires a closer look.
The searchable table below shows what Alabama schools spent per student in 2023-24 and 2024-25, along with enrollment, poverty levels and whether the school serves a special population.
Spending data was unavailable for four school districts – Choctaw County, Conecuh County, Fairfield City and Midfield City – for one or both years. Click here if you are unable to see the table below.
How we calculated the numbers
The analysis used school spending and enrollment records from the Alabama State Department of Education.
For the statewide figures and school comparisons, preschool spending and enrollment were excluded so that the calculations reflect K-12 students.
Schools without usable spending or enrollment figures were excluded from per-student averages.
The federal spending comparison includes preschool and K-12 expenditures at schools with available financial figures for both years. It is not a statewide K-12-only total.
Spending was adjusted for inflation using a federal government price index that measures changes in costs for state and local governments.