BIRMINGHAM, Ala. – The Alabama Commission on Higher Education on Friday approved more than $2.7 billion in budget requests for the 2027 fiscal year, moving forward funding plans for the agency and for the state’s public colleges and universities as lawmakers in January will begin shaping next year’s Education Trust Fund budget.
Commissioners also received updates on the state’s college attainment goals, advanced rules for a new early college option for high school students and approved a slate of academic program changes across the state.
Budget requests
The commission unanimously approved an agency budget request for $96.3 million, which includes $80 million in grants and benefits that support students and other state-level educational programs.
That amount is less than the current year’s $138 million budget, but officials explained that is because lawmakers budgeted for some expenditures that have not been made.
“It looks like we have all this extra money that we did not spend,” ACHE Executive Director Jim Purcell said. “But in fact, it already has some assignment but it just hasn’t been actually spent.”
For example, lawmakers in 2023 first budgeted $15 million for a higher education performance-funding program that has not been developed.
“This money has been reappropriated for the last three years because as of yet, it has not been spent,” Accounting Director Veronica Harris said.
Lawmakers restarted the effort to develop the program in July and have said they hope to bring a bill this legislative session to finally implement the program.
Commissioners also approved a $2.7 billion consolidated budget recommendation for Alabama’s two- and four-year public colleges. That is a $148 million, or 5.75% increase – the maximum percentage increase allowed under state law – over the current year’s $2.58 billion budget.
That request is built around Education Trust Fund projections and the limits set by the Rolling Reserve Act, with much of the growth tied to employee salaries, benefits and other mandatory costs campuses are facing.
It reflects a $106 million increase for four-year colleges, a $30 million increase for community colleges and a $1.2 million increase for other higher education initiatives included in the ETF.
Gov. Kay Ivey’s office will consider the request in her budget proposal to lawmakers at the start of the 2026 legislative session.
The budget requests come as state higher education leaders warn that Alabama faces significant workforce disruption in the coming years, driven by automation and artificial intelligence — pressures they say are already reshaping what credentials students need and how quickly colleges must respond.
Success Plus and workforce updates
In his report to commissioners, Purcell shared updated data from Ivey’s 2018 Success Plus initiative, which aims to add 500,000 workers with postsecondary credentials by the end of 2025, a deadline now just over two weeks away.
Purcell said that Alabama is nearing its current attainment benchmark – reaching 470,000 of the state’s 500,000 worker goal – national expectations continue to rise: Lumina Foundation, whose work formed the base for Alabama’s goal, has moved the goalposts.
“They decided the new number for 2040 is 75% of the workforce has to be credentialed with a credential that has value. So we’re on that treadmill,” he said. This as the state faces workforce challenges like automation and artificial intelligence, both promising to reshape the workforce.
Commission leaders said the trends increase pressure on the state to keep expanding access to education and training beyond high school.
Move On When Ready moves forward
Commissioners gave preliminary approval to rules for the new Move On When Ready program, which will allow eligible 11th- and 12th-grade students to complete high school coursework through postsecondary classes beginning July 1, 2026.
The rules outline eligibility requirements, funding distribution and oversight responsibilities shared among ACHE, the Alabama Department of Education and colleges.
Included in the rules are a requirement for the student to have a 3.25 GPA to be eligible to participate.
“Pending your approval today, the preliminary administrative procedures will be filed with the Legislative Services Agency for a 45-day public comment period before returning to the commission for final approval in March,” Stephanie Dolan, ACHE’s Director of Planning and Policy, told commissioners.
Once posted, the rules can be viewed on the Alabama Legislative Services Agency website for public comment.
Other actions
In addition to budget and policy items, the commission approved new academic programs and program changes at several colleges and universities, accepted long-term facilities and capital planning reports and authorized a handful of site and organizational changes.
A video of the meeting will be posted on ACHE’s YouTube channel and the presentation will be available at this link.