STATE HEADLINES

CONFEDERATE MONUMENT: The City Council in Montgomery has rejected a resolution to move a monument bearing a Confederate battle flag. Councilman James Knuckles` resolution would have moved the monument from the front of the Montgomery Civic Center to the White House of the Confederacy near the State Capitol, but the measure was shot down, seven to two. Supporters argued the monument is an educational exhibit, marking the spot where the offices of Conferderate President Jefferson Davis was located. Some black leaders argued the historic marker is divisive, and could hurt tourism if put in a more prominent spot. BUDGET HEARINGS: Also in the State`s Capitol, budget hearings get underway this week with the Legislative Session now less than one month away, and it looks like lawmakers will be faced with a bleak outlook for the General Fund when they return on February 1st. In the meantime, various budget committes of the State House and Senate will be hearing from state agencies and various interest groups wanting a larger piece of the revenue pie. Both sides of the aisle agree that solutions reached during the special Legislative Session last fall were temporary fixes at best, and the problems remain. TEACHER PAY RAISES: Another issue lawmakers must grapple with in February, is the demand for a seven-percent pay hike for Alabama teachers. Teachers Union boss Paul Hubbert said last month he wanted seven percent for his members because they hadn`t had a raise in two years. Indications are that growth in the Education Trust Fund might support an increase, but lawmakers say it`s far too early to commit to a specific figure.