Phoenix, AZ – New projections show spending is going to continue to decline the rest of this year and into the next. In fact, it won't return to pre-2007 levels until at least 2013. Economist Elliott Pollack said that's because people feel poorer because they're in debt, have little savings, and their retirement accounts and home values have shrunk.
Phoenix, AZ – Martin said the problem is Arizona is spending about $28 million a day while bringing in less than $23 million in taxes.
"It definitely is a path towards bankruptcy if there's no changes in spending. You can't ignore your bills forever. The state's done that for about a year and a half as revenues have continued to drop. Spending has gone the other direction," Martin said.
Phoenix, AZ – We have new figures this afternoon of what the state is collecting in taxes. The numbers, which reflect consumer spending, are far below projections as shoppers, anxious about the economy, are keeping their money in their pockets.