The resolution mandates the Alabama Legislature to conduct a comprehensive study aimed at modernizing the K-12 education funding system, which currently operates on a resource-based model established in 1995. This model has been criticized for its complexity and inadequacy in addressing the diverse needs of students, particularly those with disabilities or other specific requirements. Unlike the majority of states that utilize a student-based funding formula, Alabama's system does not adequately reflect the true costs associated with educating various student demographics, such as low-income or gifted students.

The study will explore the transition to a student-based funding model, which would allocate resources based on student enrollment and specific characteristics, thereby providing a more equitable and effective funding structure. The Legislature is tasked with assessing the potential costs and necessary legal changes to implement this new framework. Findings and proposed legislation are to be submitted to the Governor and legislative leaders by February 1, 2025, ensuring that the state can move towards a funding system that better supports the educational needs of all K-12 students in Alabama.