PHOENIX - More than two years after Arizona voters passed a law denying in-state college tuition and other state-funded benefits to undocumented immigrants, thousands of people are still applying for those services and being turned away.

Supporters of the law say the numbers are evidence that the measure is working, saving money that the state shouldn't be paying to educate people who came here illegally. Opponents say the numbers show thousands of bright young people are being denied the opportunity to improve their lives through education and contribute to society.

The law, known as Proposition 300, was approved in 2006 by more than 70 percent of Arizona voters. It requires state agencies to verify the immigration status of applicants for state-funded services such as child care and adult education, along with in-state tuition and financial aid for college students.

Reports submitted to the Legislature show that during the first six months of 2009, 71 percent of the 485 applicants for family literacy courses were denied benefits because they couldn't prove legal immigration status. The courses are aimed at teaching parents without high school diplomas, and their young children.

Thirty-two people were denied state-assisted child care, according to the reports.

More than 3,400 community college students and nearly 300 university students paid nonresident tuition because they couldn't prove they were in the country legally. Thousands more university students never had their immigration status checked because they didn't seek in-state tuition or state-funded financial aid.

Because nonresident students pay more than the actual cost of providing their education, Arizona's colleges and universities actually profited from undocumented immigrant students.

The millions of dollars in savings has freed up money for programs for legal residents, said State Treasurer Dean Martin, who as a state senator in 2006 sponsored the legislation referring Proposition 300 to the ballot.