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Minnesota tax revenues below projections for February, March

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The state raked in a bit less revenue than expected in February and March, but there's no cause for panic, Minnesota budget officials say.

Minnesota net general fund receipts totaled $2.637 billion during the months of February and March, which was $67 million, about 2.5 percent, less than forecasted in February, according to a four-page budget update released Thursday by the Department of Minnesota Management and Budget.

That compares to January when the state took in about $83 million more than anticipated.

The new update reports that the shortfall in the most recent two months had to do with the timing of payments that tax collectors anticipate will come in later.

The report also notes that individual income taxes were higher than expectations by about 2.2 percent. The breakdown for February and March:

Individual income tax:
Forecasted: $1.28 billion
Actual: $1.31 billion

General sales tax:
Forecasted: $702 million
Actual: $698 million

Corporate franchise tax
Forecasted: $317 million
Actual: $300 million

Other revenues
Forecasted: $405 million
Actual: $332 million

Budget officials in February announced that the state had a projected budget surplus of $1.2 billion for fiscal years 2014-2015. That was up significantly from an estimate from late last year. That forecast was important because it was the one state lawmakers have been using this session to guide their spending and tax decisions.

The quarterly updates like the one released Thursday are not used in guiding those decisions, the Associated Press notes.

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