State education chief proposes one-time $100 million ‘teacher stabilization’ fund to offset enrollment losses

Alabama education officials proposed a one‑time stabilization fund — roughly $100 million — intended to replace lost foundation program dollars and prevent teacher layoffs after a sharp statewide enrollment decline.

Presenting the data, a department official identified as Doctor Mackey said the state lost about 9,700 students in the most recent year and highlighted a pronounced drop in kindergarten enrollment. “This year, we lost 9,700 students,” Mackey said; she added that the department has seen partial re‑enrollments but that the overall decline remains large enough to cause budgetary stress for districts.

The department described the proposed stabilization approach as a one‑year bridge intended first to preserve teacher jobs and second to give districts flexibility to respond if student counts rebound. Using an example shown to the board, the department calculated that a district that lost 386 average daily membership (ADM) would face roughly a $2.4 million reduction under the foundation program formula; the stabilization fund would close that gap for one year.

Why it matters: foundation program allocations drive district staffing and budgeting; an abrupt enrollment drop can trigger layoffs or force districts to make immediate program reductions. The department framed the money as “not new money” but a reallocation that prevents sudden personnel reductions until enrollment stabilizes.

Key points from the board discussion: - The department emphasized that the stabilization money is intended to be one‑time and to substitute for money districts would have earned had enrollment not fallen. The department described it as a $100 million pool that would reduce the fiscal shock to districts. - The speaker said some districts already have experienced enrollment gains since October and that district-by-district allocations were calculable from the department’s model; officials said they had not published a public spreadsheet of allocations while the governor and legislature consider budget language. - Board members asked for clarity on how the dollars would be distributed, whether the calculation would account for local weights, and how the department would coordinate with the governor’s office and legislative staff. Mackey said conversations with the governor’s finance office and legislative leadership had been positive.

The presentation noted broader demographic context: state youth population has declined over multiple years and kindergarten in particular is down about 5,000 students from earlier years, creating uncertainty about whether many of the children kept at home this year will return to kindergarten or enter first grade in future years.

Ending: The proposal will be discussed with the governor’s budget office and the legislature; the department said it would provide district allocation estimates but deferred public release until the executive and legislative planning processes matured.