STATE OF EDUCATION FUNDING
Alabama
Fair school funding systems ensure that districts, schools, and ultimately students receive significant additional funding according to their specific needs. Providing high-quality learning opportunities for students living in poverty, English learners, students with disabilities, and rural students requires additional resources.
According to The Education Trust’s State of Funding Equity, in Alabama:
- The highest poverty districts receive $1,475 or 13% less state and local revenue than the lowest poverty districts.
- The districts serving the most students of color receive $908 or 8.1% less state and local revenue per student than the districts serving the fewest students of color.
- The districts serving the most English learners receive $195 or 1.8% more state and local revenue per student than the districts serving the fewest English learners.
For more information about how these data compare with other states or district specific information, see The Education Trust’s State of Funding Equity report.
Learn more about
how Alabama
funds students
According to EdBuild, “Alabama has a primarily resource-based funding formula. It determines the cost of delivering education in a district based on the cost of the resources, such as staff salaries and course materials, required to do so.” This formula calculates the funding for districts based on student enrollment, not student needs. Alabama’s Foundation Program does little to consider students with additional needs, with minimal funding for “at-risk” students and students with disabilities. There are separate line items in Alabama’s Education Trust Fund, which attempt equity for students with additional needs (students from economically disadvantaged backgrounds, students with disabilities, and students who are English Learners). However, these line items result in less than $139 additional dollars per pupil each year.
The Education Law Center’s 2023 Making the Grade Report rated Alabama’s school funding:
- F on per-pupil funding relative to the national average.
- F on the percentage difference in per-pupil funding in high-poverty districts relative to low-poverty districts.
- C on the PK-12 funding as a percentage of state GDP.
How fair is
Alabama’s Funding?
Strong schools build strong communities, and that starts with fair and transparent funding. Our State Ratings Rubric shows how Alabama is doing when it comes to making sure every student gets the resources they need to thrive. Using criteria grounded in research, best practices, and what we know works for students, we rate Alabama across five key areas: whether the state funds students adequately, funds student needs equitably, funds districts appropriately, funds students transparently and effectively, and keeps public dollars in public schools.
To explore ratings across Southern states and learn more about the criteria we use, click here.
Tap on ratings for more information.
Hover over ratings for more information.
Last updated: August 2025
| Component | Description | Rating | Explanation |
|---|---|---|---|
| FUND STUDENTS ADEQUATELY | |||
| Funding Adequacy | Per-student funding is at or above the national average ($16,645). | Per-student funding was $2,788 less than the national average in the 2021-22 school year. | |
| Yearly Increases | Base funding for all students increases every year to account for inflation. | Alabama does not have a per-student base amount, but the Foundation Program increased by 3.1% for the 2025-26 school year, from $4.63 billion to $4.78 billion. | |
| Progressive Tax Policies | The state maintains healthy revenue sources for schools. | No major reforms to property, income, or sales tax in 2025. | |
| FUND STUDENT NEEDS EQUITABLY | |||
| Student-Based Formula | The funding formula is primarily student-based. | Hybrid formula. | |
| Students from Low-Income Backgrounds | The state provides additional funds for students from low-income backgrounds. | 2.25% weight for the 2025-26 school year (the RAISE Act allows a weight of up to 20%). | |
| English Learners | The state provides additional funds for English Learners. | 7% weight for the 2025-26 school year, plus 3% for districts with many English Learners (the RAISE Act allows a weight of up to 15%, plus up to 5% for districts with many English Learners). | |
| Students with Disabilities | The state provides additional funds for students with disabilities, based on their needs. | Three different weights based on the type of disability, ranging from 2% to 75% (the RAISE Act allows tiers from up to 25% to 150%). | |
| FUND DISTRICTS APPROPRIATELY | |||
| Cost Sharing | The state requires local governments to share the cost based on their ability to pay. | Local governments contribute based on their revenue from property, sales, and other taxes. | |
| Local Revenue Cap | The state limits wealthy districts from contributing excessively more than other districts. | The state sets a cap that voters can override. | |
| Rural Districts | Small districts and districts with few students per square mile ("sparse districts") receive additional funds. | No additional funding | |
| Concentrated Poverty | Districts with high concentrations of poverty receive additional funds. | No additional funding | |
| FUND STUDENTS TRANSPARENTLY & EFFECTIVELY | |||
| Formula Transparency | The funding formula is easy to understand and clearly explained. | The new student-based RAISE Act is transparent and clearly explained, but the resource-based Foundation Program is not. | |
| Funding Data | The state shares detailed, timely, and user-friendly public data on districts’ funding. | Data is detailed, but not timely or user-friendly. | |
| District Spending Plans | The state requires districts to share public reports about how they invest funds to meet students' needs. | Districts must publish accountability reports each year that show specific investments and how they relate to district goals for student groups with additional funding. | |
| Formula Review | The state requires a clear, stakeholder-led process to evaluate the formula and recommend improvements. | A review committee of legislators and state officials must meet yearly and give recommendations to the legislature, but they are not required to engage stakeholders. | |
| FUND PUBLIC SCHOOLS EXCLUSIVELY | |||
| Vouchers | The state does not divert public funds to private schools through voucher programs, education savings accounts, or scholarship tax credits. | The CHOOSE Act provides vouchers with near-universal eligibility and minimal accountability requirements. | |
Who’s Who
in Alabama
Legislature
The Alabama State Legislature is a bicameral body. The Alabama House of Representatives has 105 members and the Alabama State Senate has 35 members. In the 2010 elections, Republicans gained control of both chambers for the first time since 1874 and currently hold a supermajority. Both the House and the Senate have standing Education Policy committees that hear related education legislation. The Senate Finance and Taxation Education and House Ways and Means Education committees handle all legislation related to the Education Trust Fund, In 2024, the legislature will convene February 6, 2024.
State Superintendent of Education
The Alabama State Superintendent of Education is a constitutional officer appointed by the Alabama State Board of Education.
State Board of Education
The Alabama State Board of Education is a nine member board headed by the governor. The State Superintendent serves as the Secretary and Executive Officer of the Board. The remaining eight members represent Alabama’s eight education districts and are elected in four-year terms. Each year, the board appoints a vice president and a president pro tempore from the elected members.
