Office of Government Relations
Legislative Update - May 24, 2004

Legislature Concludes Regular Session

The Alabama legislature concluded the 2004 Regular Session at around 10:00 pm on Monday, May 17, 2004. This was the first time in quite awhile that the Legislature did not go until midnight to complete their business. Most believe the Governor will call a special session in late summer to again address government accountability. The Education Trust Fund Budget passed the Legislature in early May. Gov. Riley promptly signed the $4.5 billion budget. This budget provides an additional $1.2 million for Troy University . While we are thankful for the increase, we must still find ways to fund retirement and retiree health insurance. These unfunded mandates were directed by the legislature last year. The General Fund Budget passed on the last day of the session, the largest in state history. The $1.4 billion budget is one that simply covers the anticipated expenses for most state agencies. Medicaid, Public Health, Public Safety and Senior Services will receive a slight increase while all other state agencies are level funded or will have a slight decrease. To balance the General Fund Budget state lawmakers increased taxes on tobacco products, raised the state tax on nursing home beds, raised the severance tax on oil and natural gas produced in Alabama, increased fees for filing most types of civil court cases, and increased fees for inspections and licenses for the Department of Agriculture and Industries. Also, the state eliminated the sales tax exemption for contractors on products bought for local, state and federal construction projects through 2006. This tax increase will generate $196 million. While accountability provided the most debate early in the session, none of the Governor's accountability package passed. The Higher Education Reform Act, HB 315/SB 295, died in the last days of the session. Troy University worked with the Governor to amend this bill into a workable piece of legislation. We will probably see this legislation again if the Governor calls a special session.

Troy University , along with several other universities, was able to able to defeat efforts to eliminate the 50-mile radius policy for out-of-state students. We met with our legislative delegations from Montgomery , Phenix City , Dothan and Troy and rallied support to keep this important policy in place. We also solicited the help of our colleagues at South Alabama, North Alabama, West Alabama and Jacksonville State.