The reduction in teacher units is a direct outcome of lower student enrollment numbers across the state. State funding for the 2025-26 school year is calculated based on the previous year’s student count, which totaled 720,175 students. While this figure represents an increase of approximately 1,500 students compared to the year before – leading to 153 additional teacher units funded through the Foundation Program statewide – these gains were not evenly distributed among districts.

The loss of teacher units can considerably impact school budgets, especially in rural or high-poverty areas, where state funding constitutes a substantial portion of their financial resources.

Several small city and rural school systems, predominantly in Alabama’s Black Belt region, are expected to experience the moast significant proportional losses. These include:

• Selma City, wiht a 10% decrease from 143 to 128 teacher units.
• Sumter County, with a 9% decrease from 54 to 50 teacher units.
• Linden City, with a 9% decrease from 23 to 21 teacher units.
• Ozark City,with a 7% decrease from 113 to 105 teacher units.
• Lowndes County, with a 7% decrease from 67 to 62 teacher units.

This trend reflects the ongoing reliance on prior-year enrollment figures within Alabama’s Foundation Program, the primary mechanism for allocating state education funds. As enrollment continues to decline in many rural areas, these districts face corresponding funding reductions.

Conversely, school districts operating virtual or charter schools are witnessing the largest percentage increases in teacher units. Several traditional public school districts, especially in northern and northeastern Alabama, are also experiencing growth due to rising enrollment.

The map below illustrates the percentage change in Foundation Program teacher units from the 2024-25 to the 2025-26 school year, with red indicating declines and blue indicating increases. The table following the map lists Alabama’s public charter schools, which are not shown on the map but saw some of the largest percentage gains.

To mitigate the impact of these losses, districts experiencing reductions in foundation Program teacher units will receive supplementary funding through the new RAISE Act. This funding is specifically designated to support students with greater needs and can be utilized for teaching positions such as interventionists or programs aimed at addressing learning gaps.

The potential impact of Alabama’s new education savings accounts (ESAs) on public school enrollment and funding remains uncertain. While the majority of the more than 23,100 ESAs awarded as of May 20 have been allocated to students already attending private schools, nearly 11,000 current public school students have also applied.

As of May 20, the Alabama Department of Revenue reported awarding 14,350 ESAs to students transitioning to private schools, but has not yet provided a thorough breakdown of how many of these students were previously enrolled in public schools.

Impact of Teacher Unit Reductions

“Losing teacher units can have an outsized impact,especially in rural or high-poverty areas.”

When school districts face a reduction in teacher units, they typically manage staffing levels by not replacing retiring teachers or by choosing not to renew contracts for non-tenured teachers. Teachers without tenure, generally those with fewer than three years of experience in the district, are often the first to be affected.

However, a decrease in state-funded teacher units does not automatically result in job cuts.Some districts opt to utilize local funds to offset the shortfall and maintain existing staffing levels.

Understanding Teacher Units

A teacher unit serves as a funding mechanism, rather than being tied to a specific individual, representing a budgeted allocation for one teaching position. In the early grades, one unit is typically allocated for approximately every 14 students, while in higher grades, the ratio is closer to one unit per 18 to 20 students.

Teacher units are also allocated based on enrollment for other essential roles,including principals,assistant principals,counselors,librarians,and career tech staff.

Each unit provides not only salary and benefits but also includes classroom instructional support funding through the Foundation program, encompassing:

• $900 for student materials
• $500 for technology
• $157.72 for library enhancement
• $100 for professional development
• $100 for common purchases

Textbook funding is also included in the Foundation Program but is allocated based on student headcount rather than teacher units.

Complete Foundation program funding documents for the 2025-26 school year are not yet publicly available, but officials from the Alabama State Department of Education have indicated that they will be released soon.