The resolution mandates the Alabama Legislature to conduct a comprehensive study aimed at modernizing the K-12 education funding system, which has been based on a resource-based model since its inception in 1995. This current model relies heavily on state and local tax revenues, particularly local property taxes, and provides limited additional funding for students with special needs. The resolution highlights the inadequacies of the existing system, which does not adequately address the diverse educational needs of students or link funding priorities to local spending and student outcomes.

The proposed study will explore transitioning to a student-based funding model, which is more prevalent in other states and takes into account the number of students enrolled as well as their individual characteristics, such as socioeconomic status and disabilities. The resolution emphasizes the need for flexibility in funding to better support the unique challenges faced by local school systems. The findings of this study, along with any necessary legislative proposals, are to be submitted to key state officials by February 1, 2025.