Goat Hill Report- Week Ending April 11, 2025
This week the Alabama legislature completed its second week of the 2025 session. The legislature was in session for a three-day week, convening on the House and Senate floor on Tuesday, Wednesday and Thursday with committee meetings primarily on Wednesday. The legislature is now into the final third of the session, having completed 21 days out of the (maximum) 30-day session. The session is expected to wrap up in mid-May. Details of this week’s notable action and news items are provided below.
Education Budget Passes Senate – Heads to House
On Thursday, the Senate unanimously approved a record-setting Education Trust Fund (ETF) budget package totaling over $12 billion for K-12, higher education, and other educational functions. For the Fiscal Year 2026 (FY26) budget under consideration, the proposed “split” between K-12 and higher education is approximately 68% to 26% (in line with historical numbers). Senate Bill 112 (SB112), which is the primary education funding bill, represents increase a $561 million over the current Fiscal Year 2025. Proposed investments for FY26 include:
• $35 million to the Alabama Community College System – to include funding for operations and maintenance, prison education, and dual enrollment
• $12 million to the Department of Early Child Childhood – to include funding for programming for the Office of School Readiness
• $224 million to local boards of education – to include funding for transportation and parental leave for education employees
• $28 million to the State Department of Education – to include funding for numeracy and literacy initiatives and afterschool programs
• $12 million to the Alabama Commission on Higher Education – to include funding for a scholarship program for law enforcement families
• $18 million to the Department of Workforce – to include funding for the STEM Council and Workforce Council
In his floor remarks, Sen. Arthur Orr (R-Decatur), who chairs the Finance & Taxation Education (F&TE) committee, praised the cooperative spirit of the body as well as his continued collaboration with his budget counterpart in the House, Rep. Danny Garrett (R-Trussville). The two chairmen have developed a strong working relationship in recent years – which has led to minimal friction between the chambers on the budget bills as well as education reform priorities. One-time education appropriations for the current year, FY25, are also being made through a standalone budget bill – often referred to as “the supplemental.” While major changes are not anticipated to the main budget bill (SB112), the supplemental bill is often more fluid as it winds through the legislative process. It is anticipated that the House will consider the ETF budget package in the next few weeks.
Much-Anticipated Education Funding Formula Bill Advances
Along with the record Education Trust Fund budget for FY26, the Senate on Thursday unanimously approved for SB305 by Senator Orr (R-Decatur), titled the Renewing Alabama’s Investment in Student Excellence (RAISE) Act. Orr introduced the bill on Tuesday, the culmination of a year-long task force effort to establish a new education funding formula and accountability system aimed at improving student achievement. The task force’s recommendation was to keep the current Foundation Program, which funds basic needs like teachers, principals, operating expenses and supplies, but to add a new funding mechanism that better meets student needs. SB305 now goes to the House for consideration.
Although specific funding amounts will be determined each budget year as revenue figures are projected, the RAISE Act’s new funding allocation model sets out maximum weighted percentages for each of the following categories of students:
• Students in poverty: up to 20% in additional funding
• Students in special education: maximum of 25%, 50% or 150% depending on the child’s disability
• English learners: up to 15%, plus up to 5% more in districts with high concentrations of EL students
• Gifted students: up to 5%
• Charter school students: up to 10%, depending on the amount of tax revenue amounts the local school district collects
In addition to establishing funding mechanisms, the bill outlines several accountability provisions to track student outcomes and ensure effective use of funds.
• Beginning with the fiscal year 2027 budget, school districts must submit annual plans showing how RAISE funds will be used and reflect on student progress in the previous year.
• RAISE funding amounts will be published in the state’s annual Education Report Card.
• State-level oversight will come from two newly created groups: (1) A review committee composed of the state superintendent, lawmakers and legislative appointees will monitor progress and recommend changes to funding weights; (2) A separate RAISE Act Accountability and Implementation Board will, after five years of implementation, hold hearings for schools that show inadequate progress. The board can recommend corrective actions, including limiting a district’s control over how it spends RAISE funds or calling for state intervention.
ALFA Health Plan Bill Passes House
Another high profile bill this session, the Alabama Farmers Federation (ALFA) proposal to offer health care coverage to its members, passed the House on Thursday after extended debate. The controversial bill now goes to the Senate for consideration. HB477 by Rep. David Faulkner (R-Mountain Brook) would allow ALFA to offer the healthcare coverage through a plan that would not be classified or regulated as insurance. HB477 was amended multiple times in House committee to add more regulations and requirements, including provisions ensuring that customers’ coverage can’t be stopped due to illness and adding prescription drugs and mental and substance abuse treatments to the list of required coverage. ALFA, a powerful lobbying force in the State House, has argued that farm families are suffering from high insurance premiums, jeopardizing their livelihoods and keeping young people from entering the industry. Opponents, including BlueCross BlueShield of Alabama, have said Alfa will be able to select only healthy people for the plans that don’t have to follow the same rules as traditional insurance providers. The bill is expected to face further scrutiny and debate in the Senate.
Click here for bills of interest to the concrete industry.
The Alabama Legislature will reconvene on Tuesday, April 15, 2025.