The number and percentage of high school seniors graduating workforce-ready rose with the Class of 2023, according to the results of ACT’s WorkKeys Assessment, a test of skills given to public high school seniors. The results are another sign that student performance is recovering from post-pandemic lows, though the recovery is not complete.

Printable PDF available here.

The WorkKeys test measures practical math, reading, and graphical literacy skills as they are employed in the workplace. That’s different than the ACT, which tests for knowledge and skills needed in a college classroom. In 2023, 72% of seniors took the test statewide, and 62% of those tested scored at or above the silver level of workforce readiness.

Figure 1. WorkKeys Results, Statewide Trends

WorkKeys is optional, and school systems vary in the percentage of students tested. WorkKeys was given to all seniors through 2019, but the State Department of Education stopped mandating the test. Some systems still test all seniors. Some systems make the test an option for students who haven’t demonstrated college and career readiness by another measure. WorkKeys is one of seven options for demonstrating college and career readiness.

Figure 2. Numbers and percentages of participation and passing the workforce-ready benchmark

In addition, a student’s score on WorkKeys can be a recognized credential in the job market. Some businesses, particularly industrial employers, build WorkKeys into their hiring practices. Working with ACT, those employers have determined what level of proficiency, as measured by WorkKeys, is needed in particular jobs. Depending on their test performance, students earn a platinum, gold, silver, or bronze National Career Readiness Certificate. A student scoring Silver or above has the foundational skills for 67% of jobs that ACT has profiled, and that student is considered college and career-ready by the Alabama Board of Education.

Figure 3. Percentage of all students workforce ready (scoring Silver or Above), by system, 2023 (Pictured are systems in which 90% of students were tested. Adjust filter to see other systems)

In Figure 3, the school systems are shaded by the percentage of economically disadvantaged students in each system. In general, systems with higher poverty percentages tend to have lower percentages of students scoring workforce ready. However, on WorkKeys, the correlation is not nearly as strong as it is with other measures, like the ACT college readiness test. WorkKeys seems to provide a more even playing field for comparative performance.

However, the 2023 WorkKeys test results do show a pattern similar to other assessments in the wake of the Covid-19 pandemic. After dropping in 2020, 2021, and 2022, WorkKeys results rebounded more strongly among nonpoverty students in 2023. In contrast, students from low-income backgrounds have been slower to recover to pre-pandemic levels.

Figure 4. Percentage Workforce Ready by School, 2023

The visualization below presents the results in a more detailed fashion. Each color represents the percentage of tested students scoring at each level: platinum, gold, silver, bronze, and no certificate earned. Use the menus to adjust the comparison and use the various tabs, to explore different aspects of the data.

Figure 5. WorkKeys Results, by level of certification, by system, 2023

ACT Scores for Alabama public high school students improved in 2023, bucking a downward trend nationally and providing another clue that Alabama schools began recovering from the Covid-19 pandemic more quickly than schools nationally. Students in the graduating class of 2023 were in ninth grade when the COVID-19 pandemic reached the U.S.

Printable PDF Document Available Here

Figure 1. Alabama Public High School Average Composite Scores, 2015-2023

Alabama’s Class of 2023 still trailed the score levels of classes tested prior to the academic disruptions wrought by COVID-19. The average composite score in 2023 was 17.72 on the ACT’s 36-point scale, up from 17.69 in 2022 but down from 18.58 in 2021.

The percentage of test-takers who achieved ACT’s college-ready benchmark in all four tested subjects – English, reading, science, and math – climbed to 12.8%. According to ACT, students scoring at or above the benchmark on a subject test have a 50% chance of earning a B in an introductory college course in the subject and a 75% chance of earning a C.

Figure 2. Percentage of students scoring at or above the college-ready benchmark in 2023, by subject

The scores of students from low-income households fell further during the pandemic and have not recovered to the same extent as students from non-poverty households.

The percentage of non-poverty students who were college-ready in reading was higher in 2023 than in the graduating Class of 2020. In English and science, the non-poverty students in the Class of 2023 had nearly closed the gap. In math, non-poverty students still have some catching up to do.

In comparison, the percentage of economically disadvantaged students who scored college-ready in 2023 remains significantly lower than pre-pandemic levels.

Figure 3. Comparing Poverty and Non-poverty Students’ College Ready Percentage, by subject, by selected years

Compared to other states

Nationally, a shrinking percentage of students of students were college-ready in 2023. In all four subject areas, the percentage of students scoring at or above the college-ready benchmark was the lowest in recent history. The average Composite score declined by 0.3 points, from 19.8 in 2022 to 19.5. Immediately before the pandemic, the U.S. average ACT composite score was 20.7 in 2019. While Covid led to sharp drops in scores, the national average score on the ACT has been trending down for several years. In 2017 and before, the national average composite was 21.

Comparing Alabama’s average composite score to the national average isn’t appropriate because of the difference in the universe of test-takers in different states. All Alabama public high school students take the ACT. In many states, only college-bound students take the test. Other states focus on the SAT instead, leaving only a small portion of students to take the ACT.

Looking strictly at the states where 100% of students took the test, the average composite score was 18.3, compared to Alabama’s 18 (When it comes to state-to-state comparisons, ACT provides a different state average than the data strictly focused on Alabama public school students).

Data provided by ACT and accessible through ACT’s online dashboard indicates that White students in Alabama have caught up to and scored at the same average as White students in other 100% states. However, Black and Hispanic students in Alabama haven’t regained as much ground. There also appears to have been a steep jump in the percentage of students scoring in the lowest ranges of the test. The percentage of Alabama students who scored 15 or below jumped from 34% to 41% during the pandemic.

Figure 4. Trends in the percentage of ACT test-takers in score ranges US vs. Alabama

Focus on Alabama Scores

Alabama students’ average scores improved in reading, English, and science but not math.

Figure 5. Trends in scale scores by subject

System Level Results

At the school system level, systems with a higher proportion of non-poverty students post higher average scores. Systems with a higher concentration of poverty post lower average scores.

Using the menu options on the right of the visualization, you can adjust variables to see the data through different lenses. Figure 6 presents the average scale score of non-poverty students in each system. Applying this different lens helps identify high-performing systems where higher poverty percentages might affect overall performance. More than half of the students in systems like Brewton, Huntsville, Haleyville, Jasper, and Demopolis are economically disadvantaged. But the Non-poverty students in those systems post average scores that rank them in the top 20 of school systems,

Figure 6. Non-poverty student’s average scores, by system

Meanwhile, Figure 7 compares the average scale score of economically disadvantaged students attending the various systems. Again, this different lens reveals a different set of high-performing schools. More than 40% of students in Satsuma, Saraland, Arab, and Oneonta are economically disadvantaged, and yet economically disadvantaged students there score higher than the all-students average statewide. Economically disadvantaged students make up more than half the student body in Brewton and Winfield, but despite that concentration, the system average for students in poverty ties or beats the state all-student average.

Figure 7. Economically Disadvantaged Students’ Average scores, by system

Examining results at the school level is also important for identifying high performance. Figure 8 presents the average scores of Black students by school. The highest average scores are found in Montgomery, Birmingham, and Huntsville magnet schools.

Figure 8. Black students’ average scores, by school

Use the menus and tabs to explore data on your own, find your school or system, and make comparisons keeping in mind student body socioeconomic composition. Available data options include:

• Change in system performance
• Change in school performance (when looking at the biggest change, keep in mind that schools new to the comparison may be improving from zero the year before)
• Get an idea of the average ACT score of students admitted to Alabama colleges and universities and also the average score of the lowest 25% and upper 75% of enrolled students.

Alabama’s public school enrollment is down slightly for the 2023-2024 school year, with a decline in the number of white students enrolled, partially offset by a growing enrollment of Hispanic students. Just over half of public school students, 51% are white, 32% Black, and 11% Hispanic. This year’s enrollment continues a long-term trend. In 2000, 62% of students were white, and the percentage of Hispanic students barely registered.

The percentage of students identified as economically disadvantaged is at an all-time high, with 60% of enrolled students directly qualifying for a free lunch under the National School Lunch program. Qualification is based on having a household income that qualifies for federal benefits like housing, food, or health care support. The percentage of children identified rose substantially after Alabama’s Medicaid program began working with the Department of Education to identify students who qualified for Medicaid and related benefits. Coming out of the Covid pandemic, the number of families and children is elevated. Federal law prohibits states from removing patients from Medicaid rolls during a public health emergency. With the public health emergency now over, Medicaid is reassessing which households remain eligible.

The school systems seeing enrollment gains are generally found in places where the population is growing: north Alabama systems in and around Huntsville and to the south in Baldwin County. Growth in enrollment is also occurring at public charter schools that are starting up or adding grades. School systems offering online or virtual school programs have also shown gains. Read Al.com’s reporting on trends in school populations.

Rural systems saw the largest declines in percentage terms. Large county and city systems in Mobile, Montgomery, Shelby County, and Birmingham accounted for the larger numeric declines in enrollment.

Use the tabs to explore data, for your local schools and systems.

The Alabama State Board of Education voted on Thursday to change the test score students must earn to be considered reading on grade level by the end of third grade. The change was recommended by testing experts due to changes made in the content of the 2023 test and shifts in results.

Using the score the state had in place, 24% percent of third graders who took the state standardized test in the spring of 2023 would have scored below the grade level reading mark. Using the target adopted by the board on Thursday, 17% of those students would have scored below grade level.

The grade-level reading target will take on increased importance this spring when the retention provision of the Alabama Literacy Act takes effect. At that point, students testing below grade level by the end of third grade could be held back. (Students will have a chance to get up to grade level during an intensive summer literacy camp. Other exemptions and methods of evaluation are also available).

The second and third-grade reading cut score changes received the most attention because of the implications. However, the changes to the state standardized tests of English Language Arts (ELA) were made across all grades in 2023. Along with changes in test content, the test scale was shifted, and proficiency cut scores adjusted. The changes make performance comparisons and trends across years difficult to interpret.

The Alabama Comprehensive Assessment Program (ACAP) is a series of standardized tests specifically built for Alabama, designed to test students at each grade level as they progress through the Alabama’s courses of study in English Language Arts, Math, and Science.

The original ACAP reflected the course of study in place in 2020. However, in 2021, the state adopted a revised ELA course of study. That revised course of study included a heightened focus on reading skills as called for by the Alabama Literacy Act. Changes to the course of study included:

• phonemic awareness and fluency added in grades 2-3;
• phonics added in grades 2-5
• listening skills added in grades 2-8
• text-dependent writing added to grades 2-3
• Recognizing and producing writing in different modes: narrative, informational, and opinion writing added in grades 2-8

Thus, with new concepts and points of emphasis added to the test, the test results were re-examined in light of the changes. Cut scores for the four achievement levels were adjusted. As a result, the test score a student needed to be considered proficient, i.e. scoring at either level 3 or level 4, was changed.

Comparing 2023 and 2022 results, average numeric scores in 2023 were lower in every grade but 6th. However, since the tests were changed and the scales were changed, the state department recommends against comparing scores from year to year.

While mean scores were down, proficiency rates were generally up. The percentage of students earning a score in the proficient range increased in all grades except third and eighth, where proficiency declined by 1% and 3%, respectively. The biggest jump in proficiency was in fifth grade, where the percentage of students scoring proficient jumped 9 percentage points. That is despite a large decline in the numeric mean score in 5th grade.

Because the tested material changed and the test scale was shifted, it is difficult to say if the score changes and proficiency changes were due to changes in student performance, changes in the scoring, or a combination of those and other factors.

Three of eight State Board of Education members voted against lowering the cut score that determines which students are reading below grade level. Those members expressed concern that students who weren’t prepared for the next academic level would be promoted and find themselves far behind and without the literacy support available in the early grades.

However, the majority of board members expressed support for following the advice of testing experts, recognizing that students this year were essentially taking a new test that required a new evaluation of results. Even with the lower cut scores, education officials are expecting a sharp increase in the number of students being required to repeat third grade in order to catch up in reading.

About half the states have some sort of retention provision. Alabama’s approach is modeled after Florida and Mississippi efforts. Both those states have seen large gains in reading on national assessment after implementing a systematic approach to literacy instruction.

Like those states, Alabama has dramatically increased funding and professional development for reading instruction and has especially targeted schools and systems with high concentrations of struggling readers.

Huntsville continued to surge ahead as Alabama’s three other largest cities lost population to surrounding suburbs. However, the pace of decline slowed in Birmingham and Montgomery, as it did in many cities nationwide that were hit hard by pandemic-driven change.

That’s from the latest estimates produced by U.S. Census Bureau. The estimates cover the period between July 1, 2021, and July 1, 2022, a period during which the effects of the Covid-19 pandemic continued to echo.

Since the outbreak of the Covid-19 pandemic, many urban centers have seen an erosion in population, both from heightened death rates and outward migration due to changes in work and commuting patterns. In 2022, some central cities began to bounce back, particularly in the South. Nashville and Atlanta returned to population growth.

Meanwhile, other Southeastern cities barely slowed during the pandemic and have since accelerated. Charlotte, N.C., and Jacksonville, Florida, landed in the Top 10 for growth in 2022, along with Florida and Texas cities.

Alabama’s Four Large Cities

As the 2020 Census approached, the state’s four largest cities had converged at about 200,000 residents each. As the cities have changed ranks, population trends have become increasingly closely watched. (Coverage by Al.com).

Long the state’s largest city, Birmingham’s population peaked in 1960 at 340,000. After 1960, almost all Birmingham-area residential growth occurred in surrounding suburbs rather than the city. A downtown urban residential renaissance in recent years hasn’t been enough to offset the shift to newer housing farther from the city center. According to the estimates, Birmingham is now the third largest city, behind Huntsville and Montgomery. However, Birmingham’s urban core remains larger, and its metro area is more than twice as large as Huntsville.

Meanwhile, Huntsville’s population growth has been spurred by both private and public defense and technology investment, as well as by the successful recruitment of manufacturers like Mazda-Toyota and Polaris. And unlike Birmingham, Huntsville has been able to add population because it strategically annexed land where residential and job growth is taking place. Instead of being surrounded by a ring of suburbs, Huntsville now encircles its largest suburb, Madison.

Mobile has seen steady population loss but is pursuing an annexation campaign to boost its population above Birmingham and Montgomery.

Metropolitan Statistical Areas

When looking at groupings of urban counties known as metropolitan statistical areas (MSAs), the state’s largest MSA, Birmingham-Hoover, saw a population decline according to the estimates. Data released earlier showed that growth in Shelby and St. Clair County didn’t offset the larger out-migration from Jefferson County and the elevated rate of death rate experienced in Jefferson County. In the new 2022 estimates, most of the inner ring of Birmingham suburbs also showed a population decline, with the growth concentrated farther from the city center. Mobile, Gadsden, and Columbus, GA-AL MSAs also saw declines. The rest of the state’s MSAs posted population gains.

A cluster of north Alabama MSAs — Huntsville (Limestone and Madison County), Decatur (Morgan County), and the Shoals (Colbert and Lauderdale Counties) — saw the most growth. In percentage terms, Baldwin County MSA grew the fastest.

Growth in Smaller Cities

Most of the population growth occurred outside of the big four cities. Tuscaloosa and Auburn-Opelika continued to see population increases. Tuscaloosa has seen Alabama’s most significant bump in its total population since the 2020 Census. Part of the rise in the numbers was due to what amounted to a recount. Tuscaloosa successfully argued that the 2020 Census undercounted the city’s population since most students had left for home during those early days of the pandemic. After considering new data, the Census Bureau now counts Tuscaloosa’s population at over 110,000, more than 10,000 residents higher than the 2020 estimates base.

Huntsville neighbors Madison and Athens were among the big gainers, as were more distant neighbors in its orbit like Cullman, Florence, and Muscle Shoals.

Baldwin County’s growth is widespread to the south, with several cities — Foley, Daphne, Fairhope, Gulf Shores, and Loxley — among the top 20 for growth in Alabama cities.

The most recent estimates showed close-in Birmingham suburbs Vestavia Hills, Homewood, Mountain Brook, and even Hoover as declining in population. The high cost of houses and short supply in the already-developed suburbs has likely affected the trajectory of population levels in those communities. Meanwhile, newer suburbs farther afield, like Helena, Chelsea, and Calera, continue to see growth.

Montgomery, which was long the only sizeable city in Montgomery County, is seeing population growth in its relatively new neighbor, Pike Road, which has added more than 1,000 new residents since 2020. Prattville is seeing similar growth levels.

The population is growing modestly in Wiregrass communities, the biggest gainer being Enterprise which has added about 1,000 residents since 2020.

Cities surrounding Anniston and Gadsden have continued to see very modest population changes.

Across Alabama, about 55% of cities lost population in the most recent year. Wide swaths of rural Alabama, particularly in the west and central part of the state, are experiencing population decline. Only 50 cities statewide out of 460 added 100 people or more between July 1, 2021, and July 1, 2022, according to the estimates.

As graduation approaches for the Class of 2023, there’s new data available allowing us to look back on last spring’s graduates.

The Class of 2022 faced particular challenges due to the Covid-19 pandemic, which struck when they were sophomores and persisted through their junior year. In both those years, the number of kids who dropped out was elevated: over 1,000 juniors from the Class of 2022 cohort dropped out, more than double the number of juniors that dropped out in the Class of 2021.

In the end, 89% of seniors graduated, compared to 92% in 2011, but those that persisted were more likely to finish college- and career-ready (CCR).

The Class of 2022 posted a significant jump in the percentage of CCR seniors, thanks to a jump in the percentage of students earning workforce-related credentials and an increase in dual enrollment.

In 2022, 79% of seniors were certified as CCR, up from 76% in 2021. That gain was despite a large drop in the percentage of seniors testing college ready on the ACT. (See PARCA’s previous analysis on the ACT results).

Fig1. Trends in High School Graduation and College and Career Readiness

The Class of 2022 broke a trend of smaller graduating classes, and despite the elevated dropout rate, more students graduated.

State leaders had been calling on schools to close the gap between graduation and career-ready rates.

A lower graduation rate combined with college-and-career readiness means that the gap between graduation and readiness narrowed to 10 percentage points, compared with 15 percentage points the previous year.

Shifts in Readiness

High school students can demonstrate college and career readiness in several different ways. Figure 1. allows you to explore trends on each measure. Diving below the surface on these measures presents a mixed picture of the Class of 2022.

Fig. 2 College and Career Readiness Measures, by Percentage of Seniors Earning

College and career readiness can be demonstrated by one or more of the following: 

1. Earn an Industry Recognized Credential through Career Technical Education: 39% of students earned an industry-recognized credential through career technical education in 2022, the highest rate for any class. These credentials result from taking work-oriented courses offered at high schools or K-12 career tech centers. Credentials must be tied to a student’s course of study and should be valued in a career field that is in demand in the regional job market. According to State Department of Education data, in 2022, the biggest jump in credentials earned was in certifications in the use of Microsoft software. Big gains were also posted in the number of students earning Certified Guest Professional credentials, a credential associated with the hospitality industry, and in Adult Beef Quality Assurance, an ag-related credential. Also posting gains were credentials associated with healthcare, construction, forestry, and the military’s ROTC programs. Across all grades, the 2021-2022 academic year saw more students earning CTE credentials than ever before: 33,535 compared to the pre-pandemic peak of 31,062 in 2019. While the growth is laudable, attention should continue to be focused on the quality and value of the credentials available.
2. Earn Credit Through a College: a higher percentage of students earned college credit while in high school in 2022 than ever before: 18%. That’s up from 17% in 2020. These courses, also known as dual enrollment, tend to be taken through a local community college but can also be through a university. The student must successfully complete the course and earn credit to qualify as CCR.
3. Earn a Qualifying Score through College-level Courses Taught in High Schools: Advanced Placement (AP) courses are taught in a high school but have the rigor and approach of college courses. In 2022, 12% of students qualified as CCR through AP, which is tied for the highest percentage ever. To count as CCR, a student has to score three or higher (out of 5) on the national end-of-course test, a level at which a college might award college credit. The number of students qualifying through success in International Baccalaureate (IB) classes also increased. IB is similar in rigor to AP, though less widely used.
4. Earn a qualifying score on WorkKeys: 39% of seniors demonstrated college readiness by performing well on ACT’s WorkKeys test. This marked a recovery in the number and percentage of students qualifying by this measure. After dropping from 2019 to 2021, 2022 saw a recovery of 5 percentage points in 2022. WorkKeys is a standardized test designed to measure whether students have the math and communication skills expected in workplaces. WorkKeys is no longer required, and, in many systems, students who have already demonstrated college and career readiness by another means opt out. (More on WorkKeys results below)
5. Earn a benchmark score in a subject test on the ACT: The percentage of students scoring at or above the college-ready benchmark on the ACT was down by 8 percentage points in 2022, to 37%. This rate has been dipping consistently every year and is now down 14% from 2018.  A student scoring above the benchmark has a 50% chance of earning a B or above and a 75% chance of making a C or above in that course in college. Covid disruptions may have had some bearing on students’ ability to prepare for and take the ACT, which tests readiness for success in college. Alabama’s drop in performance coincides with a national drop that began before Covid but appears to have been exacerbated by the pandemic.
6. Successfully enlist in the U.S. Military: The same percentage of students gained admission to the military, but that represents an increase of from 519 in 2021 to 590 in 2022. However, that total is less than half of what it was in 2018 when 1,129 seniors entered the military after high school.

Fig. 3 College and Career Ready, by Number of Seniors Earning

The Class of 2022 deviates from recent trends. Over the past few years, fewer students have been progressing through Alabama public schools. From 2018-2021, class sizes were down 7%. During that time, we saw a 6% decrease in graduates and a 5% decrease in career or college-ready students. In 2022 however, we saw a class size increase of 5%, a 2% rise in graduates, and an 8% rise in career or college-ready students. This symbolizes a return to pre-pandemic numbers. However, the new generation of students is known to be smaller. In light of this and the ongoing elevated demand for skilled workers, Alabama must focus on graduating every student with the skills needed to succeed in higher education and/or the workplace.

School and System Results

Last year, one system and twenty-four schools reported a 100% on-time graduation rate. This year, one system, Magic City Acceptance Academy, and only fourteen high schools reported a 100% on-time graduation rate. Fourteen high schools reported both 100% graduation and 100% CCR rate. In some schools, a higher percentage of seniors demonstrated college and career readiness than graduated.

Fig. 4 CCR and Graduation Rates by System, 2022

On the other hand, fifteen schools had graduation rates below 75%. Nineteen high schools had CCR rates below 50%. Only nine school systems had a gap greater than 25% between their graduation rate and the college and career readiness rate. In those systems, more than a quarter of students receiving diplomas hadn’t demonstrated their readiness for college or work, despite having met Alabama’s requirements for obtaining a high school diploma.

In the visualizations below, school systems and schools can be sorted by either graduation rate or college and career readiness rate. The solid-colored horizontal bar represents the graduation rate; the short vertical bar represents the CCR rate. Through the tabs above the visualization, other data is accessible, including a graph of the gap between the graduation and CCR rate by system.

The same set of sortable data is available by school. In order to protect student privacy, results for small subpopulations of students are not presented.

Fig. 5 CCR and Graduation Rates by School, 2022

Gaps Between Subgroups

Historically, there have been gaps in the high school graduation rate between students of different races. In 2022, the gaps in graduation got slightly bigger, and the gap in overall CCR was slightly reduced. Some trends seen in past years are continued or even exaggerated. CCR rates for economically disadvantaged students are well behind those of non-economically disadvantaged students. Examining the subcomponents of CCR, the gap is widest on the ACT despite everyone achieving lower numbers from years past.

Only 18% of Blacks and 22% of Hispanics benchmarked in a subject on the ACT, compared to 47% of whites. Asians are much further ahead, with 68%. By contrast, there is almost no racial gap in college and career readiness rates in career technical education: 38% of Black students earned an industry-recognized credential through CTE compared to 40% of whites and 40% of Hispanics.

Fig. 6 CCR and Graduation Rates by Subgroup, 2022

WorkKeys

The number of high school seniors taking ACT’s WorkKeys Assessment increased by almost 4,000 in 2022, a major reversal in a downward trend in the use of the test.

Along with higher participation, a higher percentage (60%) and a greater number of students (2,833) qualified as college and career ready as a result of their scores.

Fig. 7 WorkKeys Results, Statewide Trends

WorkKeys is given to seniors and is designed to measure practical math, reading, and graphical literacy skills as they are employed in the workplace. That’s different than the ACT, which tests for knowledge and skills needed in a college classroom.

WorkKeys was given to all seniors through 2019, but the State Department of Education stopped mandating the test in 2019. While some systems still test all seniors, some systems make the test an option for students who haven’t demonstrated college and career readiness by another measure.  

Some businesses, particularly industrial employers, build WorkKeys into their hiring practices. They have determined what level of proficiency, as measured by WorkKeys, is needed in particular jobs. Depending on their test performance, students earn a platinum, gold, silver, or bronze National Career Readiness Certificate. A student scoring Silver or above is considered college and career ready.

Jefferson, Mobile, Montgomery, Limestone, and Lauderdale County systems, as well as city systems in Huntsville, Birmingham, Florence, and Madison recorded large increases in the number of students taking WorkKeys and successfully earning credentials.

Fig. 8. Number of Students Workforce Ready 2022 and Change from 2021

The visualizations that follow present WorkKeys results statewide and in systems where more than 90% of seniors took the test. The percentage of students scoring workforce ready are those that score Silver or above.

Fig. 9. Percentage Workforce Ready by System, 2022

The visualization below presents the results in a more detailed fashion. Each color represents the percentage of tested students scoring at each level: platinum, gold, silver, bronze, and no certificate earned.

Fig. 10. WorkKeys Results, by Level of Certification, 2022

In Alabama and across the country, average scores on the ACT, the widely-used college readiness test, dropped for the pandemic-plagued Class of 2022, with Alabama scores reaching their lowest point since 2015.

Compared to the Class of 2021, Alabama public high graduates’ average composite score dropped by almost a point from 18.6 to 17.7 on a 36-point scale.

Printable PDF version available here.

That’s down from a high of 19.2 reached by the Class of 2017. The 2022 drop was sharper than but parallel to a half-point decline in the national average ACT score. ACT reports that the 2022 composite is the lowest national score in over three decades. The percentage of students rated college ready also dropped in every tested subject.

In Alabama, only 12.5% of seniors in the Class of 2022 scored at or above the college-ready benchmark in all four subjects. The subject with the highest college-ready rate was English, in which 40% of students met or exceeded the benchmark. In math, only 16.9% met the college-ready standard.

This PARCA analysis of ACT results includes interactive charts to explore and compare the performance of your local school and school system. Use the tabs above the graphs to explore different views of the data. Use the menu options on the right to change the subject being viewed or toggle through results for various demographic subgroups.

Why the drop in scores?

The most immediate explanation for the drop in scores is the Covid-19 pandemic.

While the Class of 2022 experienced a relatively normal senior year in 2021-2022, their sophomore and junior years, key ACT preparation and testing years, were disrupted.

In their sophomore year, in-person schooling ended abruptly in March 2020. Their junior year, which began in the fall of 2020, featured an uneven mix of remote and in-person learning. All Alabama juniors take the test in the spring, with some retesting into the senior year.

At the same time, many colleges dropped the requirement that students take a standardized admission test. So, students who previously would have taken the test several times in hopes of improving their scores were less motivated to do that.

On average, students who take the test multiple times improve their scores. According to ACT, the number of Alabama students taking the test three or more times declined from approximately 21,000 in 2017 to 13,000 for the graduating class of 2022. The results presented in this dataset and previous years are based on the highest scores achieved by graduates.

The drop in scores was prevalent across most Alabama schools and systems. There was no discernable pattern in the performance decline across schools and systems. Neither the socio-economic mix of the student population, per-student funding, or previous ACT score performance correlated with the changes.

Among demographic subgroups, White and Hispanic students saw steeper drops in performance than Blacks and Asians. As with most standardized tests, score gaps exist between racial, ethnic, and economic groups. On average, Blacks and Hispanics earn lower test scores, and a smaller proportion of test-takers in those groups reach the college-ready benchmark. Asians, on the other hand, outscore Whites.

Students from economically disadvantaged households are also less likely to earn a college-ready score than students who aren’t economically disadvantaged.

While the pandemic’s disruptions are the most immediate and obvious cause for declining scores, the downward trend in performance in Alabama and across the country predates the pandemic. What would have caused scores to rise in Alabama through 2017 and then decline? What factors would be so widespread that scores across the country on all four subjects could be affected?

ACT points to the declining percentage of high school students taking four or more years of core classes: four years of English and three or more years of math, social studies, and the natural sciences. Across demographic groups, students who take the full complement of core academic classes perform better on the ACT.

Why is the ACT important?

Many colleges use a student’s ACT score as a factor in admissions and as a qualification for scholarships. The ACT tests student skills needed for college success in four subject areas: English, reading, math, and science.

Each subject test is scored on a 36-point scale, and the subject scores are averaged to form a composite score. Through research, ACT established a benchmark score in each subject. Scoring above the benchmark is associated with having a 50% chance of obtaining a B or higher in the entry-level course in the subject area. Alabama tests all juniors as a way to encourage and support college aspirations among students and also as a measure of how well high schools are preparing students for college.

The ACT has been taken by all Alabama public school students since 2015 when the state began giving the test to all high school juniors. Because all students in Alabama take the test, the state’s scores shouldn’t be compared to the national average or to other states where the test is only taken by a subset of students, those applying to college.

The ACT serves as one of several measures of college and career readiness for students. Students whose score meets or exceeds the college-ready benchmark on one of the subject area tests are deemed college ready.

By giving all students the ACT, the state provides an opportunity for all students, regardless of wealth or family background, to take the test and consider pursuing a college education. Performing well on the ACT can attract the attention of colleges seeking and qualifying students for scholarships. Alabama is one of 16 states that test all or most high school students using the ACT.

The ACT also serves as a measure of how well high schools are doing at preparing students academically. Federal and state governments require a standardized test as part of their accountability requirements, and Alabama uses the ACT as its measure.

The ACT’s role in accountability and the decline in scores has some in the education community advocating for replacing the ACT.

At March’s Alabama State School Board meeting, at least two board members questioned whether the ACT was the proper test for accountability purposes. The ACT is designed to predict student preparation for success in college-level classes and doesn’t necessarily reflect the content required by Alabama’s course of study.

At the same time though, Alabama Governor Kay Ivey has set goals for raising Alabamians’ level of educational attainment. Some rise in attainment levels can be accomplished through technical training. The resulting credentials can improve income and career path. But a bachelor’s degree or higher still provides a more significant boost when it comes to better job prospects over the course of a lifetime. So, raising college-going and competition rates remains a key priority.

And despite the fall in scores on the ACT over time, Alabama’s high school graduation rate has increased over the same period, and the percentage of those graduates going on to four-year college has remained steady. Those two factors have meant the number of Alabama students proceeding on to four-year college has increased, despite the overall student population trending down. Meanwhile, the pandemic and the high demand for workers have led to a drop in the number and percentage of students going straight into two-year colleges. That’s not uncommon. In periods of low unemployment, more people are drawn directly into the workforce. For a more detailed analysis and discussion of college-going in Alabama, you can consult PARCA’s analysis of the most recent college-going rates.

Gov. Kay Ivey identified affordable and high-quality child care as a key priority in her speech to the Public Affairs Research Council’s Annual Forum, held Friday, March 10, at the Harbert Center in Birmingham.

“Many Alabamians and others across the country face a dilemma in finding safe, reliable childcare,” Ivey told the crowd of close to 400, “As more and more Alabamians join the workforce, which is a very positive development for our state and quality of life, more working families will also be in need of childcare services. There is no better time than right now to address this fundamental need facing this state.”

Friday’s Forum featured researchers, parents, childcare providers, and employers discussing the state’s challenges in fostering an adequate supply of affordable, convenient, and high-quality care for young children and their working parents.

Below you can find the program for the event, which includes biographies of the featured speakers.

Speakers included Alison Hooper, an assistant professor of early childhood education at the University of Alabama’s College of Education, whose research has mapped childcare availability and access across the state, and Cynthia Osborne, the executive director of the Prenatal-to-3 Policy Impact Center and professor of Early Childhood Education and Policy at Vanderbilt University’s Peabody College of Education and Human Development.

Osborne’s center has developed a 50-state comparison of key policies that relate to childcare, plus statistical comparisons of child well-being and policy options for delivering additional support to children and families. That includes a summary of findings for each state, including Alabama.

Both presentations are embedded below.

The Forum also included a panel facilitated by Janina Nobles, Child Development Instructor and Program Advisor at Bevill State Community College. The panel included a collection of parents, a childcare provider, and an employer to provide a range of perspectives on the issues happening in childcare.

Alabama’s 2021 public high school graduates entered higher education at a slightly higher rate than the Class of 2020, according to new data from the Alabama Commission on Higher Education. However, with only 55% of graduates entering higher education the year after graduation, the 2021 rate was still much lower than in the years before the pandemic.

Remarkably, though, the percentage of high school graduates enrolling at 4-year colleges is tied with its highest rate on record, with 32% of Alabama high school graduates enrolling at 4-year schools. Even more notable is that the 4-year college-going rate for Black and White high school graduates was equal among the Class of 2021: 33% of Black high school graduates and 33% of White high school graduates in Alabama enrolled in a 4-year college the year after graduation. Historically, there has been a gap between the rate of enrollment of Black and White students in college.

Printable PDF version available here.

The new data comes from the Alabama Commission on Higher Education (ACHE), the state’s higher education coordinating body. ACHE annually queries the National Student Clearinghouse of Data to check which of Alabama’s high school graduates enrolled in college, either two-year or four-year, anywhere in the country in the year following their high school graduation. Maps, college-going destinations, and rates are available for high schools and public school systems by exploring the tabs in the visualization.

The figures for the Class of 2021 show a continuing decline in the number of recent high school graduates enrolling in two-year colleges. Only 11,389 or 23% of graduates enrolled at a community college compared to the more than 15,000 typically normally enrolled in community colleges in the years prior to 2018.

The number and percentage of students enrolling at 4-year colleges increased to 15,856 or 32% of recent high school graduates. Prior to 2019, the number and percentage of students who enrolled in four-year colleges and two-year schools were about equal.

Trends

College-going rates have been affected by multiple factors over the past decade. Between 2010 and 2020, as Alabama’s high school graduation rate climbed from 72% to over 90%, the percentage of those high school graduates going immediately into college declined. Some of those additional graduates likely lacked the academic preparation to go straight into college.

Two-Year Colleges

Also, in the current economy, demand for workers is at historic highs. Low unemployment and a strong economy typically drive down two-year college enrollment. And statistics support the idea that more high school graduates are entering the workforce rather than pursuing education. According to U.S. Census Bureau surveys, 32.6% of individuals between the age of 16-19 were in the labor force in Alabama in 2014. By 2021, 39% of 16 to 19-year-olds were in the labor force, according to Census.

The Covid-19 pandemic also disrupted college enrollment, particularly at two-year colleges. For graduates of the Class of 2020, two-year enrollment fell under 12,000, marking the lowest total since 2014, the earliest year in the dataset. And for the Class of 2021, the numbers were lower still, 11,389.

While those recent high graduates may be delaying entry to community college, other enrollees have begun to return to two-year colleges. At the height of the pandemic, overall Alabama community college enrollment dropped by 10,000, from approximately 80,000 to 70,000. Recovery began in 2021, and preliminary overall fall enrollment was above 75,000. Some students who didn’t immediately enter may now be returning to pursue a degree.

A final factor appears to have some bearing on the equation. An increasing number of high school students are also enrolled at community colleges, which is known as dual enrollment. In 2018, only 15,372 students took dual enrollment courses. By the 2021-2022 school year, 23,483 students were dually enrolled. Students taking dual enrollment classes can graduate high school with college credit, with an industry-recognized credential, or even with an associate’s degree. That will increase the chances the student will enroll at a four-year college after graduation or flow into the workforce. Those dual enrollment students aren’t captured in the college-going rate data which tracks high school graduates in the year after their high school graduation.

4-Year Colleges

Meanwhile, recovery was more rapid at four-year schools, with 15,856 graduates of the Alabama public high school Class of 2021 enrolling at 4-year colleges. That’s more 4-year enrollees than any year in the dataset, and it comes in a year when there were fewer high school graduates.

In terms of destination, the Class of 2021 sent more students to Alabama 4-year colleges but also increased the number of students going to out-of-state public and private schools. Enrollment at Alabama private colleges was slightly lower for the Class of 2021.

Interesting patterns emerge when college-going statistics are broken down by race. White public high school graduates are more likely to enroll in higher education than Black and Hispanic/Latino graduates: 58% of whites compared to 51% of blacks and 39% of Hispanics.

As mentioned above, White and Black high school graduates are enrolling in equal proportions at 4-year schools. But there has been a significant shift at 2-year colleges. In 2019, 25% of Black high school graduates enrolled at a 2-year school in the year after graduation. In 2021 only 18 percent did.

And among all groups, there has been an uptick in the percentage of recent high school graduates who did not enroll in college the year after graduating. According to the statistics cited above, these individuals are likely finding employment. It’s also possible that some of these high school graduates earned certificates that will allow them entry into a career with plenty of upward mobility. However, state policy should ensure these individuals have ready access to return to the education and training system if and when they need more advanced skills to pursue a more promising career path.

Alabama tax collections grew at an eye-popping rate in the 2022 fiscal year, with particularly strong growth in income tax collections (up 27% over 2021) and online sales (up more than 20%). The strong collections produced surpluses in both primary state accounts, the Education Trust Fund (ETF) and the General Fund (GF).

Printable PDF available here

While the growth is sparking talks of rebates and tax cuts, it will be important for legislators to keep in mind that inflation will increase the cost of operating state government. At the same time, rising interest rates and diminishing levels of federal relief will likely slow growth going forward.

Alabama has had a string of record years when it comes to tax collections, with no discernable drag caused by the pandemic shutdown and the subsequent recovery. Preceding the pandemic, Alabama experienced historically low unemployment and was beginning to increase labor force participation rates, drawing discouraged workers off the sidelines and contributing to income gains.

While the pandemic sent a sudden jolt through the economy, federal relief kept paychecks coming for many and provided stimulus money to households as well. Alabama’s dip in the second quarter of 2020 wasn’t as sharp as some states, and the economy reopened more quickly than some.

In FY 2021, the continued federal stimulus and the recovering job market produced record growth in tax collections. And in FY 2022, total collections grew even faster, 18% across both funds, with the strongest growth in the Education Trust Fund.

The Education Trust Fund

The ETF receives the receipts of state sales and income tax, plus a handful of other revenue streams.

Income and sales tax collections rise with a growing economy and can shrink when the economy contracts and goes into recession. Inflation, which has averaged below 3% over the past 20 years, averaged over 7% during 2022. Since people spend more, sales taxes rise, and tax collections also grow.

Income taxes

At the same time, during FY 2022, there was a strong demand for workers, with historically low unemployment. To attract and retain employees, employers increased wages. Alabama’s workforce returned to and exceeded pre-pandemic numbers in FY 2022. Alabama’s labor force participation rate is still 5% lower than the U.S. rate, but the strong job market has drawn more people back into the labor force.

During FY 2022, the number of people working in Alabama surpassed pre-pandemic peaks, though that didn’t occur until July 2022.

With more workers receiving higher pay comes higher income tax collections. The income tax receipts were up 27% in FY 2022, contributing a total of $7.2 billion to the ETF, up $1.5 billion from 2021. And 2021 wasn’t a down year. Income tax collections increased 21% in 2021. Even in FY 2020, the fiscal year that included the pandemic contraction, income tax collections rose almost 7%.

Rising income tax collections resulted from a variety of factors. In addition to rising wages, corporate profits have been, and continue to be, high. Alabama corporate income tax collections were up 33% in 2022, an increase of $325 million over FY 2022.

Another likely contributor to the substantial 2022 collections was stock market gains in 2021, a year in which the S&P 500 was up by 27%. Taxes on those gains would have flowed in during the 2022 fiscal year.

Considering the poor stock market performance in the 2022 calendar year, revenue from that source will be down in Fiscal Year 2023.

A final contributing factor to the growth of income tax collections is the return to a normal level of auditing by the government after pandemic-related restrictions on face-to-face interactions slowed those efforts. Some of the gains may be attributed to settlements from prior years and increased compliance in the current year.

Sales taxes

Meanwhile, state sales tax collections were up 7.66%. Inflation over the period is estimated to have been 7.7%. The state makes some adjustments to the sales tax before making a final deposit in the Education Trust Funds, which slightly decreased the percentage gain to the Education Trust Fund. Ultimately, revenue from sales taxes flowing to the ETF increased 6.8%, or $159 million. The Use Tax, a companion to the sales tax but assessed on out-of-state purchases of goods and machinery, was up 18%, contributing an additional $35 million to the ETF.

The state portion of the Simplified Sellers Use Tax (SSUT), a tax on online purchases, was up 21%, suggesting a continuing migration toward online shopping. Overall, the SSUT brought $311 million, but 75% of the proceeds went into the General Fund. The SSUT contributed $78 million to the ETF, $13 million more than in 2021.

Overall, the Education Trust Fund grew 21%, an increase of $1.78 billion, with total collections at $10.42 billion.

Because of the Rolling Reserve Act, the ETF is budgeted conservatively, with spending capped by a formula. That formula computes a historical growth rate for the fund, keeping lawmakers from overspending in periods of high growth and preserving funds for lean times. It more than did its job in FY 2022. The ETF bought in $2.75 billion more than the state budgeted for education spending in FY 2022.

When the Legislature convenes in March of 2023, the body will decide what to do with that surplus. While some are proposing tax rebates or cuts, others are urging caution.

The massive injection of federal aid for education, which amounts to over $3 billion over three years, will be tapering off in 2024. Teacher compensation will need to increase to keep pace with inflation and to attract young people into the profession. Regardless, the state has healthy reserves and has continued to budget conservatively with state funds. The FY 2023 ETF budget calls for spending $8.3 billion out of the ETF, $2 billion less than what was collected in FY 2022.

The General Fund

The General Fund also grew, but not at the same rate. This has been typical of the General Fund compared to the Education Trust Fund performance pattern. The Education Trust Fund grows fast when the economy grows, while the General Fund sees a slower growth rate. The General Fund is made up of a hodgepodge of revenue sources. It supports the operation of all the government’s non-education agencies, including Medicaid and the state prison system.

The Legislature has made several adjustments in recent years to increase growth in the General Fund. That’s important because expenses inevitably rise. Not only that, the state has chronically underinvested in some supported by the General Fund, the Department of Corrections, for example. A stable, growing revenue base is needed to address longstanding needs.  

Simplified Seller’s Use Tax

The most successful of those adjustments was the establishment of the Simplified Sellers Use Tax (SSUT). The Legislature chose to devote 75% of this tax on Internet sales to the General Fund, which has been one of the state’s fastest-growing revenue sources. The move continued to pay dividends in Fiscal Year 2022.

Revenue from the SSUT was up 21%, an increase of $40 million, for a total contribution to the General Fund of $233 million.

While it continues to grow rapidly as more commerce moves online, the SSUT’s growth rate is slowing. Between 2019 and 2020, revenue from the SSUT doubled, then grew by almost 40% in 2021. In the first years of the tax, revenue grew quickly as vendors who previously hadn’t collected online sales taxes joined the system. Digital commerce also grew especially quickly during the pandemic. The shift toward digital commerce will continue, but revenue gains won’t likely advance as rapidly going forward.

Other sources

Insurance company taxes also provided a major boost to the General Fund in 2022, up 13% or $65 million more than it did in FY 2021. The tax is assessed on the value of insurance premiums issued. The Insurance Company tax is the largest tax source in the General Fund at $554 million in FY 2022. Before FY 2021, $30 million of the Insurance Company Tax was transferred to the Education Trust Fund. That has ended, providing more support for the General Fund.

The Use Tax, at $272 million, was the second largest contributor to the General Fund. This is a tax on purchases of cars, machinery, boats, mobile homes, or other goods in other states for use in Alabama. A 2015 change in the distribution formula for the Use tax has allowed a greater portion of the tax to flow to the General Fund. In 2022, revenue to the General Fund from the Use Tax increased by 18%, providing an additional $35 million than in 2021.

Rising interest rates increased revenue from the interest earned off State deposits. Revenue doubled, increasing by $20 million to $40 million.

Higher energy prices boosted the tax revenue from Oil and Gas Production taxes, up by 80%, an increase of $17 million.

Total growth in the General Fund increased 8.4%, a slightly higher rate of increase than the inflation rate during the period. Total collections increased from $2.56 billion to $2.87 billion, up $31 million. By the end of 2022, receipts to the General Fund were $351 million above FY 2022 budgeted expenses. The Legislature anticipated the surplus and applied it to the 2023 budget.

The Big Picture

The revenue flowing into the General Fund and the Education Trust fund presents only a portion of the state government spending in Alabama. In addition to the taxes earmarked for the Education Trust Fund and the General Fund, other state revenue streams flow directly to agencies. For example, taxes on motor fuels flow to the Alabama Department of Transportation for highway building. State colleges and universities collected tuition. Federal funds help pay for highways, Medicaid, education, and social services.

About half of Alabama’s public spending is for education, and half is for non-education agencies.

Rainy Day

If a recession does cause a contraction in revenues, Alabama is in a better position to weather a downturn than in the past. According to a recent analysis by Pew Charitable Trust, Alabama has the 20th strongest reserves, with $1.4 billion stashed away in Rainy Day Funds. According to Pew’s calculations, Alabama could run 49 days on the amount it has in reserve.