MONTGOMERY, Ala. — A commission of Alabama lawmakers is expected to recommend a blended K-12 school funding model that combines the current Foundation Program, created in 1995, with additional need-based funding.
The recommendation, which emerged after months of review, reflects the commission’s finding that the state’s existing funding formula needs modernization to better address student challenges.
The commission, composed of budget committee members from both chambers, considered three options during Thursday’s meeting:
- Retain the current funding formula;
- Replace it with a fully weighted student funding model;
- Adopt a hybrid approach that retains the current formula while adding funding weights for specific student needs and challenges.
House Education Budget Chair Danny Garrett, R-Trussville, emphasized that the hybrid model offers the most practical path forward, preserving current funding levels and ensuring local tax revenue remains within school districts. However, he expressed concern about the limitations of the existing formula.
“Keeping the current model would be short-sighted,” Garrett said. “There are a lot of specific issues that a funding formula might be able to take care of, but our current budget doesn’t allow us to address them.” He pointed out that just 1.2% of the state’s $5.3 billion of education funding in fiscal year 2024 targeted student needs.
Rep. Troy Stubbs, R-Wetumpka, echoed Garrett’s concerns, arguing that the current formula and the grant programs that provide targeted funding fall short in supporting all districts.
“There are certain school districts that have the ability to apply for those grants,” Stubbs said. “They know the grants are there. They get the grants. And there are other school districts who have students with those needs who do not get those grants.”
The additional targeted funding the hybrid approach provides also aligns with research the commission has previously considered. Senate Education Budget Chair Arthur Orr, R-Decatur, who co-chairs the commission alongside Garrett, cited findings that an additional $1,000 per student has the same impact on students outcomes as 72 additional days of learning.
“My quick math tells me that’s about 14 weeks of additional school learning,” Orr said.
“If we’re able to appropriate $1,000 more per student in the poverty bucket, we may or may not get to that level, but certainly dollars that we dedicate towards that will certainly improve student outcomes,” Orr said.
In addition to poverty, the commission discussed other student challenges that could receive additional funding, including English language learning, special education, charter schools and gifted programs. Lawmakers, however, stressed the importance of accountability in ensuring these funds are used effectively.
“How do you balance that with making sure they also spend the money on the need, rather than on football fields?” asked Rep. Cynthia Almond, R-Tuscaloosa.
Sen. Bobby Singleton, D-Greensboro, agreed, emphasizing the need to tie funding to specific student populations.
“I think as long as we can say that we have to pin it down – if I give you money for English learners, you have to use it for English learners,” Singleton said.
Orr and Garrett assured lawmakers that accountability measures would be part of any funding changes, although specifics would be determined later. Orr suggested legislation could include restrictions to ensure funds benefit targeted populations.
“So that it’s very clear what the limitations are on this money,” Orr told reporters. “We’re not going to use money for special ed for new astroturf for the football field.”
School funding consultant Jennifer Schiess said other states took different approaches, such as publicly sharing how targeted funding is spent or including the information in state report cards. These measures could serve as models for Alabama to improve transparency and accountability.
Garrett highlighted the broader implications of targeted funding, arguing it could ripple across the state’s workforce and economy.
“Everything we’ve looked at that addresses our labor participation, workforce participation – which is very low in state – talks about closing the education gap and speaks to that issue,” he said. “The end goal would be to improve the quality of education and improve outcomes and improve our workforce.”
The commission plans to meet again during the first week of the legislative session, which begins Feb. 4 to finalize its report. From there, it will be up to lawmakers to decide whether to act on the commission’s recommendations.