The Alabama State Board of Education discussed its draft FY28 Education Trust Fund (ETF) budget request Thursday, requesting a $246.9 million increase over the FY27 appropriation, with $77.7 million of that for local boards of education, totaling $6.8 billion. State Superintendent Eric Mackey recommended more than $89 million for several programs previously funded through one-time supplemental appropriations, including School Safety, College and Career Readiness (CRR) grants, School Breakfast, and Struggling Readers Beyond 3rd Grade, into the regular ETF standing annual budget instead.

The ETF is projected to grow an additional 5.75% in FY28, or $600 million, with approximately $400 million of that expected to be allocated to K-12 education. Mackey cautioned the board that lawmakers and state agencies have been warned FY28 will be a tightening, "very, very challenging" budget year. The board will vote next month to approve the final budget request, with room for adjustments as fall school data comes in. 

FY28 Draft Budget Request 
The largest increase requested is $56.1 million for transportation, driven in large part by diesel prices, which reached $5.71 a gallon in Alabama this week — the highest average ever recorded in the state, up from $3.46 a year ago. About half of Alabama students depend on school bus transportation, and Mackey noted some rural routes run over an hour each way. 

On memorializing supplemental programs, Mackey told the board the current approach creates a planning problem for school systems that cannot fund recurring expenses, including key personnel such as School Resource Officers (SROs) and literacy specialists, with one-time allocations. The board is requesting about $89 million in new funding for programs such as school safety. 

Alabama State Department of Education Requested Increases 

• Transportation Fleet Renewal – $56.1 million increase
• Struggling Readers Beyond Grade 3 – $45 million increase
• Summer and After School Programming – $30 million increase
• CCR Grants – $20 million increase 
• School Breakfast – $14 million increase
• Career Technical Education (CTE) - $10 million increase
• School Safety, Security, and Climate – $9.7 million increase
• Principal Leadership Mentoring Act – $7.4 million increase
• TEAMS Math and Science Teacher Salary Matrix – $6 million increase
• Alabama Numeracy Act – $2.5 million increase
• Charter School Startup – $2 million increase
• Paid Parental Leave – $2.4 million increase

Public Education Employees Health Insurance Program (PEEHIP) 
After requesting a $380 million increase for FY27 and receiving $180 million in the ETF budget, the PEEHIP Board has authorized up to $200 million in withdrawals from its retiree health care trust to cover the remaining shortfall, plus an additional $25 million in a recently approved withdrawal to balance the remainder of the current fiscal year. PEEHIP is now seeking a $222 million increase for FY28. Mackey acknowledged the legislature likely won't be able to fund the full request given competing demands on the ETF, and that continued reliance on the retiree trust raises the prospect of future premium and service cost increases. 

Foundation Program and RAISE Act Administrative Code Rule Changes 
The board amended Administrative Code Rule 290-2-1-.01 (Annual Apportionment of Foundation Program Funds) and Rule 290-2-1-.06 (Annual Apportionment of RAISE Act Funds), which fully funds PEEHIP and the 2% educator pay raise, effective Oct. 1 for FY27. 

Virtual Schools Accountability 
Virtual schools were the focus of an extended work session discussion. Mackey walked the board through how the state funds virtual programs: ALSDE funds local school boards based on student enrollment, meaning those systems with more students enrolled in virtual than in traditional programs draw more Foundation Program and Advancement & Technology funding from virtual enrollment than from their traditional schools. Board members pressed on accountability, including who is responsible for virtual school performance (current law places that with the local board); whether vendor-employed virtual teachers are evaluated the same as board-hired teachers (generally not, absent local policy); and how services like special education and gifted programming are provided to virtual students. Performance data shared during the meeting ranged from roughly 80% proficiency in one system’s virtual program to about 5.5% in another. Board members requested additional data on virtual school proficiency and grade-level coverage and indicated this issue will come back for closer review.  

Educator Preparation Programs: New Numeracy Course Sequence 
The board approved a new numeracy course sequence for all bachelor's- and master's-level Educator Preparation Programs (EPPs), aligning elementary mathematics preparation with Alabama Numeracy Act standards. The change requires four courses integrating elementary math content and pedagogy and a new Foundations of Mathematics exam prior to certification recommendation, mirroring the Literacy Foundations assessment already required under the Alabama Literacy Act. All 44 submitted course sequences have been approved by the ANA Course Review Committee. 

Resolutions Passed 

• October 5-9, 2026, as Alabama College Application Campaign Week 
• October 12-16, 2026, as “National School Lunch Week” in Alabama Schools
• October 2026 as Dyslexia Awareness Month
• October 2026 as Statewide Parent and Family Engagement Month in Alabama
• October 2026 as Manufacturing Month 

Next SBOE Meeting and Work Session
The board’s next regular meeting will take place Thursday, Oct. 8, 2026, at 10 a.m. in Montgomery, with a work session immediately following: 

• Gordon Persons Building Auditorium
• Livestream viewing:  https://www.youtube.com/user/aldeptofed/live
• Archived meeting and work session recordings:  https://www.alabamaachieves.org/state-board-of-education/meeting-videos/