Alabama Higher Ed Leaders Discuss Outcome Based Funding Amid Enrollment Challenges

The Alabama Joint Legislative Education Committee convened on August 29, 2025, to discuss critical changes in higher education funding and governance. A key focus of the meeting was the introduction of outcome-based funding models aimed at enhancing the effectiveness of state colleges and universities.

Chairman Garrett emphasized the need for a high-level overview of the current landscape of higher education funding, particularly as Alabama faces a looming enrollment cliff and the lowest labor participation rate in the nation. The committee members acknowledged that the educational landscape is evolving, and they expressed a commitment to adapting funding strategies to better align with workforce needs in the state.

The discussions included insights from a recent article highlighting Florida's governance model for higher education, which sparked interest among committee members. While no immediate changes were proposed, the article served as a catalyst for considering various governance structures across the country. The committee members recognized the importance of understanding these models to inform Alabama's approach to higher education.

The meeting also underscored the necessity for dynamic dialogue with higher education institutions, similar to the discussions that led to the successful implementation of the RAISE Act for K-12 education. The committee aims to work collaboratively with colleges and universities to improve their outputs and ensure that graduates are equipped for careers that meet the demands of Alabama's job market.

As the committee moves forward, the emphasis will be on establishing clear expectations for funding and outcomes, ensuring that state resources are utilized effectively to enhance educational results and workforce readiness. The discussions from this meeting set the stage for future initiatives aimed at strengthening Alabama's higher education system and its alignment with the state's economic needs.