In lieu of an abstract, here is a brief excerpt of the content:

  • Alabama
  • Lenford C. Sutton

State Issues Affecting P–12 and Higher Education Funding

Alabama has one of the most regressive tax structures in the United States. Moreover, the state’s constitution and its elaborate procedures lock in place inequitable features of both the income and property tax structures, which represent two of the three most important sources of state and local tax revenues necessary to support government functions. The historical background behind the 1901 constitution shows limitations on generating property tax revenue were created principally to avoid educating and providing minimum services to the free black population in years following Reconstruction. Three basic sources of revenue compose the state Education Trust Fund: sales and income tax revenues, local tax receipts, and the Public School Fund. Currently, sales collections are [End Page 244] improving; however, revenues from most other sources are relatively flat. Most growth taxes are earmarked for the Education Trust Fund, which funds both public and higher education. On the other hand, general fund revenue sources, which fund Medicaid and corrections and are 56% of budget expenditures, generally have not increased (Alabama Legislative Fiscal Office, 2013).

After a number of interest groups expressed concerns about the fiscal implications of removing the Common Core State Standards, Alabama lawmakers abandoned legislative proposals to repeal adoption of the standards aimed at supporting college career and readiness. However, given the number of lawmakers concerned about federal government intervention in state education, the issue is certain to re-emerge during the 2014 legislative session.

In response to the high-profile school shooting at Sandy Hook Elementary School in Connecticut, the Alabama Senate approved a bill authorizing the Franklin County School District to allocate monies to arm its teachers if they wanted to volunteer for the program and receive training under the direction of the local sheriff (H.B. 116).

Funding Priorities/Trends for P–12 and/or Higher Education

New legislation allows the Alabama Public School and College Authority to issue a maximum of $50 million in bonds to provide local school districts the funds needed to purchase vocational training equipment. The 21st Century Workforce Act was intended to help Alabama’s high schools and community colleges prepare tomorrow’s workforce with the skills needed for a successful career in the fields necessary to fill job vacancies abundant in the 21st-century economy (H.B. 102).

Changes to the Funding Formula for P–12 and/or Higher Education

In 2013, the Alabama legislature passed, and Governor Robert Bentley signed, the controversial Alabama Accountability Act of 2013. Under the original provisions of the new law, school systems will be able to create flexibility plans submitted for review and approval by local and state education leaders. Also, the legislation requires public hearings and public input before any school flexibility plans are approved. As a condition of increased flexibility, school districts will be required to show improved outcomes of student achievement over a five-year period. The act specifically safeguards employees’ protections earned under tenure, the minimum state salary schedule, civil rights, and health and safety regulations. [End Page 245]

The most controversial portion of the bill creates tax credits for families with children who attend persistently low-performing schools. These tax credits can be used to attend a non-failing public school or a non-public school. The legislation also creates tax credits for businesses that donate to nonprofits organizations that provide scholarships for students to attend these schools (Alabama Accountability Act of 2013). Alabama lawmakers also approved a bill to classify, by 2017, failing public schools as any performing in the bottom 10%, even when providing an adequate education. It’s difficult to estimate real revenue loss to public education in Alabama, making it difficult to budget for P–12 education. Also, state lawmakers approved legislation that would not compel schools to accept students from failing schools and delayed consideration as to whether students already in private schools are eligible for tax credits.

The $5.7 billion budget included a 2% pay raise for Alabama teachers and support personnel, $5 million in liability insurance, $12.5 million increase in pre-K funding, and no increase in class sizes. The 2013 budget also included a $35...

pdf

Share