One of every $5 spent by Alabama governments goes to educate the state’s 740,000 public school students. The schools, providing kindergarten through 12th-grade instruction, are Alabama’s biggest public enterprise.
Each of the state’s 67 counties has a school system, and 64 cities have created their own systems. The systems operate under state law with local, federal and state revenues.
In the average school system, local taxes provide only 27 percent of revenues. These dollars first go to match state funds, then to finance local priorities.
Federal funds are 12 percent of revenues, on average. They provide extra services for students with special needs and pay all or part of lunchroom costs for the 51 percent of students from low-income families.
Student charges for meals, athletic events and other services average 6 percent of revenues.
State taxes provide the remaining 55 percent. Basic funding is provided for every school, with a local funding match based on ability to pay. The state also pays for student transportation and extra help for students at risk of failing. A minimum salary schedule reduces pay disparities for teachers. There are financial, academic and safety standards that can bring state supervision of a system.
Recent revenue growth has allowed investments in academic quality. The Alabama Reading Initiative (ARI) provides reading coaches and training in all schools through third grade.
Newer initiatives have been started in math, science, technology, distance learning and advanced courses. Schools can earn performance incentives. This year, the Legislature is considering increases in such efforts, plus a teacher pay raise and a bond issue for schools.
Alabama’s schools win awards. The ARI is considered one of the nation’s best.
The state’s small pre-kindergarten initiative was one of two to win a perfect national quality rating. An Alabama high school was voted the nation’s best in 2005. Problems remain, however. Average scores on national reading and math tests are still low. Graduation rates need to improve. Funding in some school systems is far below regional and national averages.
EDITOR’S NOTE — Jim Williams is the executive director of the nonprofit, nonpartisan Public Affairs Research Council of Alabama.

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