This annual report describes the status of education in Alabama, as required by Alabama law. It presents statistical and financial operations reports and summarizes the activities and operations of the State Department of Education for the scholastic year ending June 30, 2003 and the fiscal year ending September 30, 2003. The report is divided into five sections: (1) Public education in Alabama; (2) Pupil data; (3) Local education agencies; (4) Local education agencies; and (5) State Department of Education. (Contains 29 tables, 5 graphs, and an organization chart.)