Alabama's Education Budget: A Storm Brewing

Alabama is facing a tough road ahead when it comes to funding education. The state's education budget is under pressure from rising health insurance costs and other financial demands. The Retirement Systems of Alabama (RSA) CEO, David Bronner, recently warned that the Legislature will have to make some tough choices in 2026. One of the biggest challenges is the increasing cost of health insurance for education employees. The Public Education Employees’ Health Insurance Plan (PEEHIP) is asking for a huge funding boost. They want $380 million more in the next fiscal year, which is a 33% increase. That's a lot of money, and it's not clear where it will come from. The state has been dealing with higher costs for Medicare Advantage plans and medical expenses for active employees. These costs have been rising for years, but the increases in funding have been minimal until now. The state pays most of the cost of PEEHIP, but employees also contribute. With the rising costs, it's going to be hard to keep up. The CHOOSE Act, which allows parents to use taxpayer funds for private school tuition, is also putting pressure on the budget. Almost 24, 000 students are already using the program, and most of them were already in private schools or homeschooled. This program is a priority for Governor Kay Ivey and the Republican majority in the Legislature, but it's also taking money away from public schools. Despite these challenges, there are some bright spots in Alabama's education system. State Superintendent Eric Mackey is doing a great job, and community colleges are playing a key role in workforce development. Dual enrollment programs are giving high school students a head start on their college careers. But the financial problems can't be ignored. The Legislature will have to find a way to balance the budget and fund education in a way that works for everyone. It's a tough task, but it's one that can't be avoided. The legislative session starts in January, and lawmakers will have to make some tough decisions.