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Treasurer Dean Martin: Prop 100 Not Fulfilling Promise

Updated: Tuesday, 07 Sep 2010, 9:53 PM MST
Published : Tuesday, 07 Sep 2010, 9:51 PM MST

PHOENIX - Prop 100 -- two-thirds of Arizona voters approved it in May. The 1-cent sales tax increase, right in the middle of an economic downtown, promised to save education and public safety.

But now we're finding out the tax isn't generating as much as projected.

In the first month of the sales tax, the state took in $65 million in extra revenue from the sales tax -- but that's $7 million less than expected.

If consumer spending doesn't pick up soon, by the end of the year, Arizona could be dealing with close to a hundred million less than what the backers of the tax promised.

State Treasurer Dean Martin says that the budget is in the black, essentially working paycheck to paycheck. He's live in the newsroom to explain what this means for Arizona's financial future.

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