Alabama Faces Tough Education Funding Choices in 2026, RSA CEO David Bronner Warns

RSA CEO David Bronner warns Alabama lawmakers will face tough education funding choices in 2026 as rising health insurance costs and tax cuts squeeze budgets.

David Bronner, CEO of the Retirement Systems of Alabama (RSA) since 1973, warned Tuesday that Alabama's Legislature will confront difficult decisions on education funding in 2026. Bronner pointed to rising health insurance costs and other pressing needs that, combined with recent tax cuts, are tightening the state’s fiscal room and complicating budget planning.

The RSA leader’s message highlights a familiar tension for state policymakers: how to sustain commitments to public education while addressing growing mandatory expenses. Health insurance costs for public employees and retirees have been trending upward nationwide, and Alabama is no exception. Those rising costs can consume a larger share of the budget over time, reducing available funds for classrooms, teacher pay, school programs and capital needs.

Bronner also referenced tax policy changes enacted in recent years. While tax cuts may have been aimed at stimulating economic growth or easing burdens on residents, they can reduce short-term revenue and create challenges when fixed costs increase. The combination of reduced revenue and rising expenditures creates a squeeze on the 2026 budget and forces lawmakers to prioritize competing needs.

What options does the Alabama Legislature have? Policymakers could consider a mix of strategies: targeting spending to protect core education programs, identifying efficiencies in state operations, exploring revenue options that balance fairness and growth, and prioritizing long-term fiscal sustainability for pensions and insurance liabilities. Transparency and early planning will be essential to avoid last-minute cuts that disproportionately affect classrooms.

Bronner’s long tenure at RSA underscores the importance of protecting retirement systems even as the state navigates other priorities. Keeping pension obligations funded and managing health benefits responsibly can prevent future fiscal shocks and preserve confidence in public employee retirement security.

As Alabama approaches the 2026 budget cycle, Bronner’s warning should prompt a broader discussion among lawmakers, educators and the public about priorities and trade-offs. A thoughtful approach that balances education funding, health insurance pressures and fiscal responsibility can help the state maintain services without undermining long-term financial stability.

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