Alabama Department of Education staff briefed the State Board of Education on the education budget request and highlighted a potential shortfall in the state’s public education health insurance program (PHIP), a planned push for school safety and reading investments, and an initial estimate for the cost of the state’s new parental‑leave law.

Dr. Mackey and department staff told the board that PHIP — the health plan that covers many local education employees and retirees — faces unusually high utilization this year and that preliminary projections estimate roughly $300 million could be needed in fiscal year 2027 to maintain current benefits without plan changes. Department staff said a portion of that projected increase stems from expanded mental‑health coverage and higher prescription and hospitalization costs, and emphasized the $300 million figure is a worst‑case projection that could change as claims experience becomes clearer.

The board heard that PHIP’s funding calculus can make monthly per‑member figures look large; presenters explained the commonly cited $900 per‑month figure reflects an accounting method tied to active members and is not the same as the average per‑person cost across retirees and actives. Staff provided an illustrative adjusted figure of roughly $375 per person per month after accounting for retirees, but said the overall trust needs meaningful additional resources under current assumptions.

Dr. Mackey told the board the PHIP board followed statutory process by requesting the full projected amount from the legislature. He said department staff have spoken with the governor’s office and budget chairs about the request and that the legislature will make final decisions during the budget process beginning in January; staff cautioned the full amount may not be approved and that figures could decline if utilization projections moderate.

On programmatic requests, staff outlined increases to reading‑coach funding (the department described a $52 million full need for struggling readers across grades, with a proposed $25 million direct request), continued funding for school safety (a $50 million request including prior supplemental allocations for mapping and targeted officer training), investments in virtual testing infrastructure and continued support for high‑needs special‑education grants. The department said virtual‑testing development cost about $6 million and that ACT administration costs run about $55 per student.

Board members asked about the department’s parental‑leave cost estimate. Staff said an initial number of $9.6 million was provided to the legislature as a best estimate for the law’s first year but that it likely undercounts effects (the estimate predated inclusion of two weeks for fathers and did not fully account for summer‑timing choices under the law). Staff said they will survey districts and refine cost estimates before the legislature convenes.

The board did not take votes on budget figures at the meeting; members instructed staff to proceed with drafting the formal request to be considered at the October meeting and signaled interest in seeking the larger reading‑support ask while acknowledging likely negotiation during the legislative process.