Concerns over education in 2027 and health benefits for teachers

MONTGOMERY, Ala. (WIAT) — Alabama’s State Board of Education said at meeting Thursday that it’s costing more to provide health insurance benefits to teachers, which could impact their priorities as they plan for the 2027 fiscal year.

State Superintendent Dr. Eric Mackey said over $300 million is needed to balance PEEHIP, or the Public Education Employees Health Insurance Plan, for teachers and retirees. That is because of rising healthcare costs for members. “All this other stuff we’re asking for- there’s gonna be a very small sliver of the budget to fund other stuff out of,” said Dr. Mackey. “Again, I think that a lot of negotiations are gonna happen between now and then.”

Dr. Mackey said the cost could change, but it puts a burden on the education budget.

Budget chairman Sen. Arthur Orr (R-Decatur) said lawmakers are also considering a raise for teachers, as well as a retiree bonus.

“But there may be some pilot program or some other endeavor that we’ve, kind of explored that might not make it through the legislative process,” said Sen. Orr. “Because, again, we’re gonna have to be very judicious as to how we spend the money.”

Sen. Orr said the PEEHIP Board might have to help lawmakers be judicious by chipping in to help foot the bill. He does not foresee any cuts to teachers, or programs like those required by the Literacy Act.

“We’re in good shape,” he said. “We can manage this. We may not be able to give everybody what they want. But, as far as the PEEHIP program, I wouldn’t foresee much being passed on to educators.”

Dr. Mackey said most of Alabama’s education dollars come from the state income tax, which is used to pay for teacher salaries. Budgets for 2027 will be finalized during the upcoming legislative session, which begins on January 13.