Debate looms over potential shift to student-based funding model for Alabama’s education budget

Alabama’s education funding model may be on the verge of its most significant overhaul in decades. Lawmakers on the education budget committees in the House and Senate have been discussing a proposed shift from the current Foundation program funding system to a student-based funding model during the upcoming legislative session. 

The joint legislative committee met on Thursday to finalize a report outlining potential reforms to Alabama’s education funding system. The report, set to be delivered to lawmakers before the start of the legislative session on Feb. 4, will help shape any decisions on overhauling the state’s approach to education financing.

During the meeting, members discussed three primary options for reforming the current Foundation program funding model. The first would maintain the existing resource-based system, while the second would implement a full student-weighted formula. The third, and seemingly preferred, approach is a hybrid model that would preserve the Foundation program while adding weighted funding for specific student needs.

State Rep. Danny Garrett (R-Trussville), chairman of the House Ways and Means Education Committee acknowledged that doing nothing and keeping the current model is an option but he believes it would be short-sighted. 

“I think that’s short-sighted, but it’s certainly an option that we could continue to do that,” Garrett said. He pointed out that only 1.2% of the state’s budget is currently going toward student needs, even as lawmakers receive numerous requests for funding specific issues that a new funding formula could address.

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Garrett warned that Alabama risks falling behind as other states continue to move away from resource-based models. 

“We would continue to do what we’re doing. And I would just say that states are continuing to move away from resource-based models. Mississippi is the latest that’s moved away from it. Eventually we will probably be number 46, number 47, number 48, number 50 that still hasn’t moved to some different model.”

The second option involves adopting a student-weighted funding formula to replace the current Foundation program, which has remained unchanged for nearly three decades. Proponents of a student-weighted formula argue it would give school systems more flexibility to address specific needs, departing from the ‘one size fits all’ approach.

Garrett acknowledged the challenges of such a transition, including determining appropriate funding weights and ensuring accountability. “If we were to change, every system would be empowered with greater flexibility,” Garrett said. “Accountability is important as to how that flexibility is utilized.”

The third option, a hybrid model, would retain the current Foundation program while incorporating weighted funding to address specific student needs. This approach offers a more gradual transition, providing targeted resources without requiring a full overhaul of the existing system.

“This would reduce initial complexity because we’d keep the Foundation program in place and add weights on top of it,” Garrett said, calling the hybrid model a balanced approach to reform.

He also noted that the hybrid model could allow for additional flexibility within the existing funding structure, and several committee members expressed support for the hybrid approach.

With the legislative session nearing, the committee is preparing to finalize its report on the three proposed options by February 4. Once completed, the report will be shared with all lawmakers and will direct potential legislation to reform Alabama’s education funding model.

Grace Heim is a state and political reporter for Yellowhammer News. You can email her at [email protected].