DALLAS -- Little Rock voters have rejected a 1-cent sales tax plan that would have paid for the city's largest-ever capital program while giving budget writers $12 million a year in new revenue.

City Finance Director John Pryor said the rejection in a record voter turnout on Tuesday was a setback, but it will not stop the city from balancing its $71 million general fund budget for fiscal 1992, which begins Jan. 1.

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