Chapter 1: Alabama
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Published:2023
Amy Dagley, Philip Westbrook, 2023. "Alabama", Funding Public Schools in the United States, Indian Country, and US Territories (Second Edition), Philip Westbrook, Eric A. Houck, R. Craig Wood, David C. Thompson
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Alabama has had seven constitutions since the state was first established in 1819. The first, the Constitution of 1819, known as the Frontier Constitution, established public schools in Alabama.1 Based on the principles of the Land Ordinance Act of 1785 and the Northwest Ordinance Act of 1787, the sixteenth section of each township was set aside for public schools and one township, or 36 sections, was reserved for the use of a seminary of learning. Each sixteenth section of land belonged to the individual township, and one of the earliest acts of the new state was to allow each township to lease the sixteenth section of land to provide for public schools. The original act was modified numerous times, but the most critical were: extending leases and extending time of payment, allowing townships to sell the land, and requiring proceeds from the lands to be invested in the state bank and the interest to be solely used to support schools.2 By 1840, the legislature required the state bank to pay $200,000 annually to schools, which exceeded the fair interest rate and was typical for the times—Alabama was relying on the state bank to cover all expenses of government.3 By 1843 the state bank went bankrupt,4 and the entire income of the public school fund was cut off by the bank’s failure.5 Since the State guaranteed the bank stock, the principal of the public school fund, which was represented by certificates, became a permanent charge on the State.6 However, it was difficult for the state comptroller to collect outstanding notes due to lease extensions and land that had been exploited.7 The Public Education Act of 1854 created the first statewide system of public schools by establishing the ‘Education Fund,’ and transferring the management of the school fund from the state comptroller to the new position of state superintendent.8
