By: SPEAKIN’ OUT NEWS
Alabama lawmakers are studying a major shift in how the state funds its public colleges and universities—one that would tie part of state funding to how well institutions prepare students for life after graduation. Supporters say the approach could update the state’s higher education system and strengthen Alabama’s long-term workforce needs.
The Joint Legislative Study Committee on Higher Education Funding continued its review of “modernizing” the current structure, hearing from policy experts with ExcelinEd, a national education organization that has assisted other Southern states with outcome-based funding.
“Our objective is to try to help our colleges and universities in the days and years ahead with this effort, similar—certainly not the same—as our RAISE Act that we did for K–12,” said Chairman Sen. Arthur Orr (R-Decatur). “We want to challenge our institutions to raise their bars and help them financially to get there.”
Orr said the committee plans to take a deliberate, collaborative approach similar to the one that shaped the RAISE Act. Committee Co-Chair Rep. Danny Garrett (R-Trussville) agreed, saying speculation about legislation is premature and that the committee is still listening and gathering information.
Representatives from ExcelinEd explained how outcome-based funding has already been adopted in Kentucky, Tennessee and Texas. The method ties a portion of university funding to measurable indicators of student success, including graduation rates, job placement, earnings and successful transfer to other institutions.
“Alabama is making strong strides with policies like the RAISE Act,” said Miranda Thomas, regional advocacy adviser with ExcelinEd. “There is a significant opportunity to build on that progress by implementing outcomes-based funding for higher education.”
ExcelinEd senior policy advisor Matthew Joseph said Kentucky’s model provides a clear example of what is possible. After years of stagnant graduation rates, Kentucky saw a 50 percent improvement in the rate of progress after adopting outcomes-based funding. He emphasized that funding incentives must be meaningful, simple and fair—and should reward success with low-income, first-generation and adult learners.
Orr noted that any system must be flexible to changes in Alabama’s workforce needs and should not penalize institutions that invest in high-demand fields such as nursing or computer science. Garrett added that each public institution has a unique mission, but all should ultimately align with Alabama’s statewide strategy.
“We’re going to step into this slowly,” Garrett said.
The committee expects to have a draft bill ready for discussion at its next meeting as Alabama weighs one of the biggest higher education policy shifts in years.
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