The record $12.2 billion Education Trust Fund budget was transmitted to Gov. Kay Ivey on Tuesday. The Senate quickly concurred Tuesday afternoon with House changes made last week, giving the nine-bill package final approval.
The package includes an additional $80 million for students to attend private schools through the state’s new school choice program that begins in the upcoming school year.
State leaders are also starting a new formula where schools receive additional money based on their student-population needs. The new formula will operate alongside Alabama’s 30-year-old Foundation Program, which remains in place as a base layer. The RAISE formula adds targeted dollars for students who face greater challenges, including poverty, disabilities and language barriers.
“This budget begins the long journey of making funding decisions based on the type of student being taught,” Sen. Arthur Orr, R-Decatur, told ADN Tuesday after the bills’ final passage. “All students are not the same and some need additional support to be successful in the education process. That support costs money and we began the process this year. Further, we expect to see improvements in student outcomes over time due to this additional investment in education and have the accountability mechanisms in place to ensure these positive results.”
The budget does not include a raise for teachers in 2026, but there are other benefit increases, including, for the first time, paid leave for new parents.
“Paid maternity leave, workers compensation, level health care premiums were all measures to help the educators and support personnel,” Orr said.
The nine bills are:
- Senate Bill 111 – Educational Opportunity Reserve Fund – $455 million
- Senate Bill 112 – Education Trust Fund budget – $9.9 billion
- Senate Bill 113 – Supplemental appropriation of FY24 revenue – $524.3 million
- Senate Bill 114 – Advancement and Technology Fund – $1.3 billion
- Senate Bill 109 – Tuskegee University – $15.8 million
- Senate Bill 122 – Southern Preparatory Academy – $450,000
- Senate Bill 150 – Talladega College – $1.3 million
- Senate Bill 305 – RAISE Act – creates the fund, sets up parameters for new K-12 school funding.
Alabama Daily News’ Mary Sell contributed to this report.