Funding Students, Not Units: Moving Alabama from a Regressive Public School Funding State to a Progressive Public School Funding State

Oct 15, 2026

Uploaded by Stanley

Two independent studies show Alabama’s public school funding mechanism is regressive and inequitable. The work recommends a new funding formula combining per-pupil allocation with supplemental categorical weights tied to documented student needs. This study develops such a formula to improve transparency and efficiency of public funds, enable school systems to track progress and trends, support stakeholder oversight, and provide targeted flexibility for services that change year to year.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages23

Reading Time58 min

AccessFree to download

Abstract

Funding Students, Not Units

The Regressive Education Funding State

The Baker, Sciarra, and Farrie Study

Funding Students, Not Units: Moving Alabama from a Regressive Public School Funding State to a Progressive Public School Funding State Brittany Larkin Auburn University Abstract Two independent studies conducted by Baker, Sciarra, and Farrie (2015) and Augenblick, Palaich and Associates (2015) reveal Alabama’s public school funding mechanism to be regressive and inequitable. The recommendation from both of these studies is to develop a funding formula including per pupil-based allocation and supplemental categorical weights. This study has developed such a formula. This funding formula will guarantee greater transparency and efficiency of public funds and a better public school system for all students. In order to receive the categorical funding, a school system must document a need for each individual that requires that service or program. This required data collection will allow the school systems to monitor progress and trends as well as allow for oversight by stakeholders for the use of public funds. The funding formula will also provide school systems with the mechanism to collect funds to meet the needs of their specific students, and the autonomy to expend those funds on the programs that their students need (which realistically changes from year to year) . Implementing this funding formula will be the first big step in moving Alabama from a regressive funding state to a progressive funding state. Keywords: Alabama school funding, school funding formula, equitable funding, funding distribution In the world of education finance, Alabama has been the target of jokes such as “At least we’re not Alabama.” The reason for the “joke” is that it has been common knowledge among the education finance experts that until recently Alabama (AL) has been ranked the worst state when it comes to funding public education. Now, the response to the “joke” from Alabamians has been “At least we’re not Mississippi.”While this “joke” is a light-hearted attempt at poking fun of AL, in reality it’s a sad truth with real implications for the students of AL. Using the data and recommendations reported from several recent studies conducted on the Alabama school finance system, this study proposes moving AL from their current regressive funding mechanism to a more equitable student weighted funding formula. After highlighting the results of the previous studies, a categorical funding formula including student base costs and supplemental weighted services is proposed. Using the proposed formula and data from AL’s 2014-2015 school year, examples of what the formula would produce at the state level and the local school system level was explored. Finally, the action needed to implement the proposed funding formula was discussed. The Regressive Education Funding State The Baker, Sciarra, and Farrie Study In the 2015 national report card “Is School Funding Fair?,”Baker, Sciarra, and Farrie (Baker) examine school funding fairness nationwide using four principles: effort, funding level, coverage, and funding distribution. “Effort- measures the difference in state spending for education relative to state fiscal capacity. ‘Effort’ is defined as the ratio of state spending to state gross domestic product (GDP)”(p. 4) . This report indicated AL’s per capita GDP was $37,186 and the effort index was 0.033. This means that AL contributes roughly 3.3% effort toward education, which classifies them as medium on the effort index. Baker defined the fairness of funding level as measuring “the overall level of state and local revenue provided to school districts, and compares each state’s average per-pupil revenue with that of other states [in order to make comparisons between states, the researchers controlled for] differences in regional wages, poverty, economies of scale, and population density”(p. 4) . In this ranking of per-pupil funding level, Alabama was ranked 38th among the other states with a funding level of $8,701 per student. This me

FAQs

What problem do the cited studies identify in Alabama’s public school funding?

They find the funding mechanism is regressive and inequitable, producing unfair distribution across students and districts.

What core elements does the proposed funding formula include?

It includes per-pupil-based allocation plus supplemental categorical weights tied to documented student needs.

How does the proposal support transparency, oversight, and program flexibility?

Required data collection enables monitoring of progress and trends and allows stakeholder oversight, while the formula gives districts autonomy to spend funds on services that meet changing student needs.

Oct 15, 2026

Uploaded by Stanley