MONTGOMERY, Ala. (WSFA) - Alabama's joint legislative education committee heard a presentation on outcome-based funding for higher education during their meeting Thursday.

The outcome-based funding system would allow the state to set goals for Alabama's higher education institutions and reward them for meeting those goals, which can include completion of degrees or fulfilling specific workforce gaps through education.

Lawmakers said base funding for higher education institution would not change.

"We got to look at, from a funding standpoint, the actual degree areas. We got to look at alignment when it comes to what's our focus as a state, where are we going?" said state Rep. Anthony Daniels, D-Huntsville. "I think that we have to make certain that we're not taking a one-size-fits-all approach, that we're looking at the dynamics and the situation within each institution."

Lawmakers on both sides of the aisle said they are considering adopting the outcome-based funding system in an effort to keep Alabama college graduates in the state, ensuring that they can get their degree and stay in Alabama post-grad.

"We're really don't want to try to run the institutions," said state Rep. Danny Garrett, R-Trussville. "We're not trying to tell them what to do, but we are basically saying 'look, here's what our needs are as a state, tell us as an institution -- and they will all be different -- how can you meet that? What will you do? And if they deliver, then we can provide additional funding."

Garrett said he is hopeful that lawmakers can pass a framework for outcome-based funding during the 2026 legislative session.