Alabama's Education Budget: A Storm Brewing

Alabama is facing significant challenges in funding its education system. Rising health insurance costs and other financial demands are putting pressure on the state's education budget.

Rising Health Insurance Costs

The Public Education Employees’ Health Insurance Plan (PEEHIP) is requesting a $380 million increase in funding for the next fiscal year, a 33% jump. This substantial increase is driven by rising costs for Medicare Advantage plans and medical expenses for active employees.

"The Legislature will have to make some tough choices in 2026." David Bronner, RSA CEO

The CHOOSE Act and Its Impact

The CHOOSE Act, which allows parents to use taxpayer funds for private school tuition, is also straining the budget. Nearly 24,000 students are already enrolled in the program, with most already attending private schools or being homeschooled. While this is a priority for Governor Kay Ivey and the Republican majority, it diverts funds from public schools.

Bright Spots in Education

Despite these challenges, there are positive developments. State Superintendent Eric Mackey is making strides, and community colleges are playing a crucial role in workforce development. Dual enrollment programs are giving high school students a head start on their college careers.

The Road Ahead

The financial problems cannot be ignored. The Legislature must balance the budget and fund education in a way that benefits everyone. With the legislative session starting in January, lawmakers will face tough decisions.