$9.8 billion education budget approved by Senate committee

An Alabama Senate committee on Wednesday approved a nearly $10 billion education budget for fiscal year 2026, along with two major supplemental appropriation bills for the current fiscal year. The decisions mark a significant investment in the state’s education system and pave the way for a long-anticipated revamp in distributing funding to schools.

The funding bills went before the Finance and Taxation Education Committee. The education budget bill, SB112, sponsored by Sen. Arthur Orr, R-Decatur, increases education funding for the fiscal year 2026, which begins Oct. 1, 2025, by $543.3 million, bringing the total to $9.89 billion. The allocations breakdown to $6.7 billion for K-12 funding, and $3.2 billion for higher education and other funding.

Several core education initiatives are also receiving substantial increases. The Alabama Math, Science, and Technology Initiative would see a 31 percent funding boost, equating to $32.2 million in additional support. Alabama Numeracy Act also received a $27 million increase from last year’s allocation for a total of $95 million in funding for fiscal year 2026.

In addition to the FY 2026 budget, the committee approved SB113, another bill sponsored by Orr, that allocates $524.3 million in supplemental appropriations for the current fiscal year, which ends September 30. The supplemental includes $100 million for local school boards to purchase new buses and $166 million for the State Department of Education to fund one-time expenses, such as $50 million for enhanced school safety training and services and $30 million for summer and after-school programs.

Orr explained that higher education institutions also received additional funds in this supplemental to maintain the traditional funding ratio between K-12 and higher education following changes to the student funding formula. Around $136 million would be distributed to higher education institutes under this supplemental bill.

The committee further approved SB114, which authorizes a $1.25 billion supplemental appropriation from the Education Trust Fund Advancement and Technology Fund for the current fiscal year. About $908 million of that would go to the Department of Education for distribution to local school boards and other state education entities, such as Alabama’s specialty and charter schools.

Alongside these budget measures, the committee moved forward with SB111—the Renewing Alabama’s Investment in Student Excellence Act, or RAISE Act. 

The RAISE Act represents a major reform to the state’s education funding system by introducing a hybrid student-funding model. It combines the current Foundation Program, which supports basic needs like salaries and supplies, with a new system of “weights” that allocate additional funding based on specific student characteristics.

These include students in poverty, English Language Learners, special education students, gifted students and those attending charter schools. The legislation allows lawmakers to add other groups to the weighted funding model as necessary.

To implement the transition, the RAISE Act includes a $375 million appropriation spread over three years. Of the initial $100 million allocated to the State Department of Education, $40 million would be distributed to local education agencies based on the number of students eligible for free or reduced-price lunches (excluding community eligibility provisions).

An additional $20 million would go to county school boards in counties with fewer than 50 residents per square mile, according to U.S. Census data. Another $40 million would be distributed based on the number of special education students reported in the annual Child Count.

The legislation also provides $18 million to the Alabama Department of Workforce Development for regional workforce initiatives, with $15 million earmarked for four-year universities and $3 million for the Alabama Community College System.

Higher education research institutions with more than $100 million in research expenditures would receive a combined $15 million. Among the recipients are Auburn University ($3.5 million), the University of Alabama ($1.9 million), the University of Alabama at Birmingham ($7.9 million), and the University of Alabama in Huntsville ($1.7 million).

To ensure accountability, the RAISE Act establishes a review committee made up of the state superintendent, legislators and legislative appointees. The committee is required to meet at least once annually before November 1 to assess the funding formula and review academic performance data for targeted student groups. After five years, a separate RAISE Act Accountability and Implementation Board would evaluate how effectively local education agencies are using the funds. If necessary, the board can recommend corrective actions, including budgetary oversight and state academic intervention.

The Senate at large will consider the funding bills next.