10-04-2025
Student funding formula changes get approval from Alabama Senate committee
Students walk through the hallways of Livingston Jr. High School in Livingston, Ala. on Thursday, Nov. 16, 2023. An Alabama Senate committee on Wednesday approved a bill that would shift the state's method of funding schools from a pure average daily attendance model to one that includes weights for certain groups of students, such as those in rural schools and English Language Learners. (Will McLelland/Alabama Reflector)
An Alabama Senate committee on Tuesday approved legislation to overhaul the state's student funding formula.
SB 305, sponsored by Sen. Arthur Orr, R-Decatur, would establish the Renewing Alabama's Investment in Student Excellence (RAISE) program and create the RAISE Fund to help address the needs of underserved students through a new funding system.
The state currently distributes money to schools based on average daily attendance. The new formula would provide weighted funding for students in poverty, English language learners, special education and gifted categories, as well as charter school students.
'An English language learner that doesn't speak English costs more to educate that child than a native Alabamian that comes from an English-speaking home, and so we want to help those school districts that have those challenges with additional resources,' Orr said after the committee meeting.
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The committee also approved a related bill that will transfer $375 million from the state's Educational Opportunities Reserve Fund, a state savings account for budget surpluses intended for educational initiatives, into the newly created RAISE Fund. Orr said that the transfer is intended to fund the program for the first three years, though he left the possibility of additional appropriations open in a conversation with reporters after the meeting.
'We could do more if we wanted to. There's nothing that requires us to, but we wanted to start drawing down from the Educational Opportunity Fund . . . we don't know about the economy, and we see what's going on with Wall Street and tariffs, so we want to hold some back in case we need it,' Orr said.
The senator said during the committee meeting that $100 million of the $375 million would be spent on the move to the new funding system in the first year; $125 million for the second year and $175 million for the third year.
Orr said it was important to give school districts long-term stability.
'We don't want to pull the rug from beneath them… they go out and hire teachers and make investments relying on us,' he said. 'This is a long-term commitment.'
The legislation came after months of discussions between lawmakers and advocates who pushed for a weighted student formula that would provide a base amount per student with additional weights for different student needs, such as English language learners.
The bill passed without much discussion, though one senator voiced his support for the measure.
'There are so many of the one-size-fits-all solutions that we're forced into, many times for political reasons,' said Sen. Will Barfoot, R-Pike Road. 'I look forward to supporting this program.'
Orr said the bill is a step toward more equity in education.
'It's a challenge and the research shows to educate children coming in those particular areas, it certainly costs more money … but if you don't start, you won't get there,' Orr said.
The bill now moves to the full Senate for consideration.
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