Latest news with #EducationTrustFund
Yahoo
09-05-2025
- Business
- Yahoo
Gov. Kay Ivey signs grocery tax cut into law
Alabama Gov. Kay Ivey delivers the State of the State address in the Old House Chamber at the Alabama State Capitol on Feb. 4, 2025 in Montgomery, Alabama. (Will McClelland for Alabama Reflector) Gov. Kay Ivey Friday signed a bill reducing the state sales tax on groceries. HB 386, sponsored by Rep. Danny Garrett, R-Trussville, will cut the state share of the tax from 3% to 2% effective Sept. 1. 'When we can reduce taxes in Alabama and provide some relief to the hardworking people of this state, I am all for it. I was pleased to sign House Bill 386 to take another notch off our state grocery tax,' Ivey said in a statement. Alabama is one of just a few states that still taxes groceries. Until September 2023, the state taxed groceries at the full 4% state sales tax that's been around since 1939. Combined with local taxes, the total tax on food in Alabama ran as high as 10% in some places. In Montgomery, a family spending $600 a month on groceries could pay up to $60 in taxes. The Legislature in 2023 reduced the state sales tax on groceries from 4% to 3%. But it also required growth of at least 3.5% in the Education Trust Fund (ETF), which gets most of the grocery tax. Compared to the previous fiscal year, the current 2025 ETF has grown 3.28% this year, compared to the 2024 ETF at the same point, but budget chairs indicated they were comfortable with moving forward. Under the new legislation, the tax bill on $600 worth of groceries in Montgomery will go from $54 to $48. Lawmakers also changed the bill to allow local governments to reduce their sales and use tax on groceries, effectively combining HB 387 with the legislation — which the House passed in March and a Senate committee in late April. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
25-04-2025
- Business
- Yahoo
Alabama House passes education budget, paving way for new student funding
MONTGOMERY, Ala. (WIAT) — Lawmakers are hoping a $9.9 billion Education Trust Fund (ETF) will change the quality of learning for student in Alabama. That money will go towards everything from teacher salaries to after school programs, and even scholarships for students. 'Yeah, this is always an anxious time of year, because you never really know which way things are gonna go with the budget,' said Chilton County Schools Superintendent Corey Clements. For Clements, that anxiety is subsiding. That's because the House of Representatives passed a budget with school funding changes, and Clements hopes it will support more students in his county. 'We're really excited, not just to have the funding, but also to have the flexibility to use it how we see fit within our system and not be earmarked like a lot of things are,' said Clements. That flexibility could come in the form of a funding formula. Education budget chairman Rep. Danny Garrett (R-Trussville) said schools will now receive money based on student need, rather than head count. He said this means more money for English language learners, low-income students and those in special education and gifted. 'It's transformative because, right now, the state is not providing a lot of support for ELL,' he said. 'Some of the districts have 30, 40% of ELL. That's a challenge for those districts. It dilutes resources they could otherwise spend elsewhere.' Rep. Phillip Ensler (D-Montgomery) said Democrats are concerned about funding school choice. It's a tax credit public school students could use to attend private schools. Ensler said it takes away from public schools, but he said the budget is beneficial overall. 'I think, for students in Montgomery, but students anywhere in the state- having the funding based off of the needs of that district are much more equitable and a much fair, better way of doing it,' said Ensler. Students can also look forward to new career tech centers around the state, which has been allocated for in the budget. House Speaker Nathaniel Ledbetter said these will be critical. 'Less than 70% of our kids are going to college. We need to give them an opportunity to be successful,' said Ledbetter. 'With the career pathway diploma last year, I think it's essential that we have those facilities so they can learn some type of trade to be successful.' The budget passed in the House with amendments. Now, it'll go back to the Senate for final concurrence. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
24-04-2025
- Business
- Yahoo
Alabama House of Representatives passes Education Trust Fund Budget for 2026
HUNTSVILLE, Ala. (WHNT) — The Alabama House of Representatives has passed the Education Trust Fund (ETF) Budget and its supplemental appropriation for Fiscal Year 26. 'As Alabama continues to make remarkable strides in public education, it's vital that lawmakers in Montgomery remain committed to equipping our school systems with the necessary resources to help students thrive,' said Speaker Ledbetter (R-Rainsville). 'This year's ETF is significant for several reasons. It funds paid parental leave for teachers, expands summer and afterschool programs, and increases funding for the Alabama numeracy act, which has been a catalyst for our state's nation-leading gains in 4th grade math. We're making another strong investment in the CHOOSE Act, Alabama's school choice program that is proving to be in high demand. Finally, we are creating the RAISE Program, a student-weighted funding model that funds schools based on their specific needs rather than headcount.' ETF/Supplemental Highlights Include the following: $27 million increase for the Numeracy Act $14.4 million increase for Summer/Afterschool Programs $9.6 million for Paid Parental Leave $15.6 million for Teachers Workman's Compensation $58 million for the RAISE Act $80 million increase for the CHOOSE Act 'I'm proud to have passed another strong Education Budget that positions our school systems for success,' said Rep. Danny Garrett (R-Trussville), who chairs the House Ways and Means Education Committee. 'For the first time ever, we are funding schools based off the needs of the specific students they serve instead of taking a one-size-fits-all approach and funding on headcount alone. We're also making significant investments in programs supporting teachers and students. Public education is on the rise in Alabama, and I believe that the passage of this budget will help us continue moving in the right direction.' The Education Trust Fund will now return to the Senate floor for concurrence. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
23-04-2025
- Business
- Yahoo
House committee approves $10 billion education budget; floor vote expected Thursday
Rep. Danny Garrett, R-Trussville, speaking to the House Ways and Means Education Committee on April 22, 2025, in the Alabama State House in Montgomery, Alabama. The committee approved the 2026 Education Trust Fund budget and other supplemental appropriations on Tuesday. (Anna Barrett/Alabama Reflector) An Alabama House committee Tuesday approved a 2026 Education Trust Fund budget with a few changes, bringing it closer to a vote in the chamber. SB 112, sponsored by Sen. Arthur Orr, R-Decatur, increases the current budget by $543.3 million (5.81%), but a substitute from the Alabama House Ways and Means Education Committee added an additional $17.6 million. That brings the total growth of the ETF to 6%. 'That's the maximum we were allowed to increase the budget because of our secondary cap. Next year, that number will be 5.75% under this current budget,' Rep. Danny Garrett, R-Trussville, the chair of the committee, said Tuesday. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The Senate approved the nearly $10 billion budget on April 10. Garrett said one of his priorities in the budget is continuing to invest in public education in the state. SB 305, also sponsored by Orr, allows the Legislature to appropriate additional funds to schools based on student needs. The House added an additional $58 million to begin the transition to the new model. SB 111, also sponsored by Orr, would appropriate $375 million over three years for that transition, which aims to get more money to students with particular needs, including children in poverty and English Language Learners. The budget also includes $135 million for the CHOOSE Act, a voucher-like program that will award students with funds to be used for education-related expenses, including private school tuition. The program was initially slated to get $100 million, but Orr said that demand for the program led the chairs to increase the allocation. The program is currently limited to special needs students and those making under 300% of the poverty line, about $79,950 for a family of three. The program will be open to all applicants starting in 2027, without any income limits. About two-thirds of the 37,000 applicants for the program this year are already in private school or homeschooled. 'I realize that there's different opinions about school choice,' Garrett said. 'We have the CHOOSE Act, and we're committed to that. But we are committing more than that funding into the public schools. And I think that what we're doing, especially looking at student needs, is very, very important.' There are also additional line items for workmen's compensation for educators, SB 1, sponsored by Sen. Sam Givhan, R-Huntsville; and paid parental leave, SB 199, sponsored by Sen. Vivian Figures, D-Mobile. Teachers will receive $1,000 for classroom supplies, and the state will allocate $100 per student for textbooks. Teachers will not get a raise this year, but Garrett said the education community wanted an increase in the Public Education Employees' Health Insurance Plan. There is a $99.2 million increase in PEEHIP. 'What we were hearing from the education community was that they really wanted that PEEHIP increase covered, and that's almost $100 million out of the budget,' he said. The Alabama Math, Science and Technology Initiative will see a 31% ($32.2 million) funding increase while the Alabama Reading Initiative's (ARI) funding would grow by 6.4% ($9 million). The two programs' funds remain unchanged from what the Senate passed earlier this month. State Superintendent Eric Mackey supported the budget and hopes they pass smoothly. 'I think they've done their homework,' he said. ' They've found the right balance.' House Speaker Nathaniel Ledbetter, R-Rainsville, said the House would vote on the ETF on Thursday. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
08-04-2025
- Business
- Yahoo
CHOOSE Act applications close; most applicants come from nonpublic schools
Rep. Danny Garrett, R-Trussville, speaks to a colleague on the floor of the Alabama House of Representatives on April 1, 2025 at the Alabama Statehouse in Montgomery, Alabama. Garrett sponsored last year's CHOOSE Act, which allows families to claim up to $7,000 a year in income tax credit per student to spend on nonpublic education expenses, including private school tuition. (Brian Lyman/Alabama Reflector) Almost 37,000 students have applied for the CHOOSE Act, Alabama Gov. Kay Ivey announced Tuesday morning, with two-thirds of the applicants not attending the state's public schools. Funds from the voucher-like program can be used for education-related expenses, including private school tuition. A family can receive up to $7,000 in state income tax credits per eligible student in a participating school and up to $2,000 for a student that is homeschooled. The money for the program comes out of the Education Trust Fund, where nearly all state income tax goes. Under the law, legislators must set $100 million aside for the program starting with the FY 2026 ETF budget, which goes into effect on Oct. 1. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX 'The CHOOSE Act, Alabama's education savings account program, will allow more taxpaying Alabama families the opportunity to choose a school that meets their child's individual needs,' Ivey said in a statement. Ivey's office said the 22,167 applications represented 36,873 students. Of those, 24,506 students (66.4%) come from private school (15,436) or are homeschooled (9,070.) The office said 10,287 (28%) applications were filed for students in public and charter schools. Of the public school applicants, the governor's office said 9,788 came from traditional public schools and 499 from charter schools. Mobile County, which has the state's largest public school system, had the largest number of applicants, with 5,056. Jefferson County had 4,183; Montgomery had 3,849 and Madison had 2,395. Applications to the program are currently limited to special needs students and those making under 300% of the poverty line, about $79,950 for a family of three. The program will be open to all applicants starting in 2027, without any income limits. According to the Education Data Initiative, the average private school tuition in Alabama is $8,289 per student per year. Democrats and a handful of Republicans from rural areas opposed the law last year, expressing concerns that it could drain the ETF and exacerbate de facto segregation in the state's public schools. Whitney Miller-Nichols, director of governmental relations for the Council for Leaders in Alabama Schools, an organization that provides professional development, networking opportunities, communications, legal support, legislative monitoring and recognition programs for its members, said Tuesday that the organization is frustrated that a fund designed to fund public education is not being used for public education. 'Two-thirds of the people applying or not in public schools, which is what we have seen in other states,' Miller-Nichols said in a phone interview. 'Our concern is it takes $100 million out of the Education Trust Fund. And the Education Trust Fund was established in support of public education for Alabama students.' Miller-Nichols also said the application numbers could be misleading. 'I will point out that the other thing we don't know at this point is how many of those applicants meet the income qualification,' she said. 'The net might be wider than maybe the program administrators intended, because people are applying even if they exceed the income criteria.' According to the release, families will be notified in May if they have been awarded the funds and will be able to start using their education savings account in July for approved expenses. Gina Maiola, a spokeswoman for Ivey, said that each applicant will either receive $7,000 or $2,000 for their ESA. Of the 36,000 applicants, about 16,000 (43%) students will receive an ESA from the CHOOSE Act. 'Based on the strong response, we fully expect the $100 million to be utilized to support our taxpaying Alabama families,' she said in an email. SUPPORT: YOU MAKE OUR WORK POSSIBLE
