Minnesota Revenue Report Suggests Even Larger Budget Surplus
St. Paul, MN (KROC-AM News) - The State of Minnesota finished the first quarter of its fiscal year with nearly $300 million more revenue than anticipated.
A quarterly report issued by the Minnesota Office of Management and Budget shows total net general fund revenues for the three-month period. that ended in September were just over $7 billion. That is $289 million, or 4.3%, above the level that was predicted by the most recent state revenue forecast in February.
The forecast for individual income tax payments was fairly accurate. The total of nearly $3.7 billion was only $6 million above the forecast for a variance of only 2-tenths of a percentage point. Sales tax payments beat the forecast by 7.6% or $146 million and totaled a little over $2 billion. Minnesota's corporate tax payments came in more than 19%, or $110 million higher than predicted at almost $680 million.
Looking back, state officials reported the previous fiscal year that ended in June saw state revenues total more than $30.3 billion. That was $2.9 billion, or 10.6% above the amount projected by the February state revenue forecast which predicted a state budget surplus of more than $9 billion when the current fiscal year ends next summer.
The next state revenue forecast is scheduled to be released in early December. The consulting firm used by the state is predicting a mild recession beginning before the end of this year.