HB473 Summary

• Modifies the calculation method for Alabama's Foundation Program funding by including a two-year enrollment trend adjustment in addition to the baseline first-20-days average daily membership (ADM) count.

• Requires the annual apportionment of Foundation Program funds to be based on the average number of students enrolled during the first 20 scholastic days following Labor Day of the preceding school year, plus or minus the difference in ADM between the first and second preceding school years.

• Addresses the issue of school systems with declining enrollment still receiving funds for students no longer enrolled, while growing systems do not receive funds for new students they must educate; Alabama schools lost approximately 2,600 students from fiscal year 2015 to 2016.

• Amends Code of Alabama Sections 16-13-231 and 16-13-232 regarding teacher units, textbook allowances, and current expense calculations to incorporate the new ADM methodology.

• Becomes effective on the first day of the first month following passage and approval by the Governor.