The Alabama House of Representatives passed the Education Trust Fund Budget for fiscal year 2027 on Thursday morning.
Worth a cumulative total of $10.9 billion, the budget builds on a "historic" trend of success being observed among Alabama's fourth-grade students in math and reading, largely thanks to the proper allocation of education funding.
“With the nation’s largest gains in fourth-grade math and reading, Alabama is leading what many are calling the ‘Southern Surge’ in education,” said House Speaker Nathaniel Ledbetter (R-Rainsville). “This historic progress is no accident. It starts with the Legislature’s commitment to providing students, teachers, and school systems the resources they need to succeed."
He added, "Whether it’s the new $150 million investment in career and technical education or our continued support for evidence-based programs like the Literacy and Numeracy Acts, the Fiscal Year 2027 Education Trust Fund budget represents another step toward ensuring Alabama continues to silence doubters and climb national education rankings."
State Rep. Danny Garrett (R-Trussville), chairman of the House Ways and Means Education Committee, applauded the state legislature's efforts in crafting the budget.
“Whether it be delivering record levels of support to public schools or investing in Alabama’s nation-leading school choice program, the Legislature’s approach to funding education is beginning to pay significant dividends for our students, teachers, and the future of our state,” said Garrett. “Our goal each year when crafting the Education Trust Fund budget is to ensure every taxpayer dollar is spent responsibly and transparently while positioning our state to continue making progress in student achievement."
"We have done just that throughout this quadrennium, and I am grateful for the hard work of our committee, my colleagues in the House, and Speaker Ledbetter in helping move Alabama’s education system forward," he concluded.
FY27 Education Budget Highlights:
- $7.59 billion (72.46%) for K-12
- $2.89 billion (27.54%) for higher education
- The Creating Hope and Opportunity for Our Students’ Education (CHOOSE) Act is level-funded at $100 million. This will be combined with $150 million that was directed from this year’s revenues before they entered the ETF, for a total of $250 million.
- $100 million funding a 2% pay increase for teachers.
- $180 million supporting the Public Education Employees' Health Insurance Plan (PEEHIP)
- $150 million for regional career technical education centers
- $114 million for the Alabama Numeracy Act
- $151.9 million for the Alabama Literacy Act (Alabama Reading Initiative)
- $226 million for the First-Class Pre-K Program, resulting in 47% coverage of Alabama’s four-year-olds
- $81 million for the Renewing Alabama's Investment in Student Excellence (RAISE) Act to provide additional needs-based funding for school systems
- $65 million to support the College and Higher Education Excellence and Results (CHEER) Act, a new outcome-based funding model for institutions of higher education
The fiscal year 2027 Education Trust Fund budget also includes a $419.7 million supplemental appropriation, while $1 billion was appropriated from the Advancement and Technology Fund for K-12, community colleges and universities.
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