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| Montgomery -- Governor Riley has signed two budgets to operate schools and state agencies in Alabama, saying the austere plans will hurt until more revenues come in.

The governor called the Alabama Legislature into special session in September after the defeat of his tax and accountability plan (See below). Lawmakers dealt with the more than half-billion dollar hole in the state budgets that had to be approved by the end of Fiscal 2003 (September 30).

Riley and the State Finance Director, Dreyton Nabors, had said massive cuts will have to be made in various state agencies. For example, State Troopers will have their work weeks reduced to four days, overtime eliminated and mileage per day cut. And, the state's Parole Board will be increased from three members to seven to accommodate more paroles and allow for the release of between 5,000 and 6,000 non-violent offenders to ease overcrowding and tightening budgets.

A $1.2 billion General Fund budget was approved by both houses. Many state agencies were cut by at least 18 percent. Money to some agencies, such as courts and the Attorney General's office has been reduced as well. Still, some saw increased funding, such as prisons and child foster care.

In education this year, new textbooks won't make it to school shelves. And health insurance will get more expensive for teachers and school employees; the state will pay less as a percentage for health insurance. Next fiscal year, education leaders warn, could mean layoffs for thousands of school teachers and support personnel.

In all, the $4.24 billion Education Trust Fund passed is down about a quarter of a percent over last year's spending level.

There were no tax hikes, nor additional revenue in either plan passed by both houses.

Both budgets were signed by Governor Riley. They took effect for Fiscal Year 2004, which began Wednesday, October 1.

| Montgomery -- Voters overwhelmingly said no to new taxes and changes in revenue collection in Alabama. More than 1.2 million voters went to the polls on Tuesday with more than two-thirds of the electorate rejecting Governor Bob Riley's plan.

NO - 68%, or 866,623 YES - 32%, or 416,310 100% boxes | unofficial

In defeat, the governor said voters sent a strong message about more accountability and trust in government, but admits there are difficult cuts to make because of a $675 million budget hole. A special session of the Alabama legislature is expected next week to deal with the shortfall.

The tax increase and reform proposal drew fire from both sides of the political aisle. The measure would've raised more than $1.2 billion in additional revenue -- through income, motor vehicle, automobile repair, cigarette and property tax increases (among others). But the plan also would've also reduced revenue from those in lower income brackets by quadrupling the minumum income tax threshold in Alabama -- now the lowest in the nation -- over the next two years. The plan originated from the Riley administration and was amended and passed in special session of the Alabama Legislature earlier this summer.

As part of our coverage, WBHM's Tanya Ott reported on how the world of public opinion polling has become the numbers game. And meet the Joneses to hear how the plan would've affected them.

The day after, on Morning Edition with WBHM's Steve Chiotakis, UAB Political Scientist Dr. Christopher Stream had analysis of the campaign and Melanie Peeples reported on reaction to the defeat, from the governor to those fighting against his plan.