Two independent studies conducted by Baker, Sciarra, and Farrie (2015) and Augenblick, Palaich and Associates (2015) reveal Alabama's public school funding mechanism to be regressive and inequitable. The recommendation from both of these studies is to develop a funding formula including per pupil-based allocation and supplemental categorical weights. This study has developed such a formula. This funding formula will guarantee greater transparency and efficiency of public funds and a better public school system for all students. In order to receive the categorical funding, a school system must document a need for each individual that requires that service or program. This required data collection will allow the school systems to monitor progress and trends as well as allow for oversight by stakeholders for the use of public funds. The funding formula will also provide school systems with the mechanism to collect funds to meet the needs of their specific students, and the autonomy to expend those funds on the programs that their students need (which realistically changes from year to year). Implementing this funding formula will be the first big step in moving Alabama from a regressive funding state to a progressive funding state.