The resolution mandates the Alabama Legislature to conduct a comprehensive study aimed at modernizing the K-12 education funding system, which has been in place since 1995. The current Foundation Program relies on a resource-based funding model that primarily allocates funds based on local property taxes and state tax revenues, but it falls short in addressing the diverse needs of students, particularly those with disabilities or other specific requirements. The resolution highlights that Alabama is one of only six states using this outdated model, while the majority of states have transitioned to a student-based funding approach that considers enrollment numbers and additional factors such as socioeconomic status and special needs.

The study will explore the feasibility of shifting to a student-based funding model, which would better reflect the actual costs of educating various student groups and support their academic success. The Legislature is tasked with assessing the potential costs associated with this transition and identifying any necessary legal changes to implement a new funding framework. The findings and any proposed legislation are to be submitted to the Governor and legislative leaders by February 1, 2025, ensuring that Alabama's education funding aligns more closely with the needs of its K-12 students.