Alabama lawmakers will consider Wednesday (April 9) a bill to fundamentally change how the state targets funding to support students with educational challenges.
Senate Education Budget chairman Arthur Orr, R-Decatur, filed Senate Bill 305 Tuesday (April 8). It outlines a new funding formula and accountability system aimed at improving student achievement. It also tasks the Alabama Department of Education with helping school officials implement the changes effectively.
That proposal, called the RAISE Act — Renewing Alabama’s Investment in Student Excellence — would create a dedicated RAISE Fund to provide the additional funding each year starting this fall.
Year-long review
The act stems from a year-long review by a state task force examining Alabama’s K–12 funding system. Their recommendation was to keep the current Foundation Program, which funds basic needs like teachers, principals, operating expenses and supplies, but to add a new funding mechanism that better meets student needs.
Under the proposal, a base amount tied to the previous year’s average per-student Foundation Program allocation will determine the additional funding, known as “weights”, that would be added based on specific student characteristics.
The bill establishes maximum weighted percentages for each of the following categories of students:
- Students in poverty — up to 20% in additional funding;
- Students in special education — maximum of 25%, 50% or 150% depending on the child’s disability;
- English learners — up to 15%, plus up to 5% more in districts with high concentrations of EL students,
- Gifted students — up to 5%;
- Charter school students — up to 10%, depending on the amount of tax revenue amounts the local school district collects.
A student can qualify under more than one category. For example, a student who is an English learner could also qualify under poverty, special education and charter school categories.
The bill allows lawmakers to establish new categories in the future.
The potential cost of the legislation wasn’t available Tuesday but will likely be discussed today.
Accountability provisions
In addition to establishing funding mechanisms, the bill outlines several accountability provisions to track student outcomes and ensure effective use of funds.
Beginning with the fiscal year 2027 budget, school districts must submit annual plans showing how RAISE funds will be used and reflect on student progress in the previous year.
RAISE funding amounts will be published in the state’s annual Education Report Card.
State-level oversight will come from two newly created groups:
- A review committee composed of the state superintendent, lawmakers and legislative appointees will monitor progress and recommend changes to funding weights.
- A separate RAISE Act Accountability and Implementation Board will, after five years of implementation, hold hearings for schools that show inadequate progress. The board can recommend corrective actions, including limiting a district’s control over how it spends RAISE funds or calling for state intervention.
The RAISE Act is included in the broader education budget package to be considered Wednesday in the Senate education budget committee, chaired by Orr. The budget package includes:
- A proposed $9.9 billion Education Trust Fund budget,
- Nearly $2 billion in supplemental funding, including:
- $524 million in supplemental appropriations
- $133 million from the Educational Opportunity Reserve Fund
- $1.25 billion from the Advancement and Technology Fund
EDITOR’S NOTE — This story was written by Trisha Powell Crain and originally published by Alabama Daily News.
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