The Alabama Legislature has passed an act mandating a study to modernize the state's K-12 education funding system. The current system, known as the Foundation Program, has been in place since 1995 and is primarily resource-based, funded by state and local tax dollars, including a mandatory local property tax. This system is considered complex and inflexible, lacking the ability to adapt to the changing needs of students and school districts. It also provides minimal additional state funding for students with disabilities or other specific needs.

The resolution acknowledges that Alabama is one of only six states that do not use a student-based funding formula, which is more prevalent across the United States. A student-based formula typically allocates funds based on student enrollment, with additional resources for students who are low-income, have disabilities, are English language learners, or are gifted. The Legislature is tasked with studying the transition to a modern, weighted, student-based funding model that would better reflect the costs of educating different student groups and aim to bring all students to proficiency. The findings of the study and any proposed legislation are to be delivered to the Governor and other key legislative leaders by February 1, 2025.