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Alabama has maintained the same education funding model for the last 30 years, and without changing it cannot expect to see different results from its school districts. Alabama also remains one of six states left in the country that utilizes a resource-based formula rather than a student-based formula.
The Foundation Program is Alabama’s formula for funding school districts, based on student enrollment and grade level. It ensures that each district receives a minimum level of funding per student, with additional support for districts serving students with special needs.
The state legislature approves the program annually as part of the Education Appropriations Act. However, the program does not consider factors like family income or the number of English language learners in a district.
Critics of the Foundation Program argue that it is neither equitable or adequate. They contend that the funding does not fully meet the needs of students, especially in districts with large populations of students requiring additional services, such as those with special needs or English language learners.
These districts, they say, are often underfunded, making it difficult for schools to provide the necessary resources and support. $1,000 more per pupil through school finance reform efforts has the same effect on student outcomes as 72 additional days of learning.
“We would start weighing our appropriations based on the student population in a given school district. The four buckets that we’ve agreed upon are English language learners would get an extra funding boost, gifted students, poverty and Special Ed,” said Orr.
Currently, less than $7,700 in funding per pupil is available in 41 of Alabama’s school districts. All three of the hypothetical funding models based on data from fiscal year 2025 would raise the minimum amount of funding per pupil within the range of $7,700 to $8,699.
The majority of school districts in all three models would be spending $8,700 or more per pupil, and more than 85 percent of districts would see a $500 increase per student.
Part of the funding for these models could come from the Educational Opportunities Reserve Fund, which currently has about $1 billion.
“That could be used for this program to move it along. We would phase it in over five years so it would offset if we had a down year or a flat year to keep the commitment. The numbers people in the legislature say that it should be sufficient to get us where we need to get,” said Orr. “We would use this Educational Opportunities Fund if the budget can’t shoulder the commitment.”
Money can be withdrawn from the Educational Opportunities Reserve Fund to provide one-time funding under two conditions: a 2 percent reduction in revenue is expected, and to support “initiatives that provide access to enhanced educational opportunities” to students in K-12 and higher education.
The legislative committee will review a final report in January with a possibility of legislation introduced in the upcoming session.
