July shortfall projected in state tax collections


Minnesota fell $21 million short of its projections for tax collection in July.

The Associated Press cites a memo from the Minnesota Department of Management and Budget released Monday that shows that the state took in just under $936 million in taxes. That's approximately 2.2 percent less than anticipated.

The shortfall showed up in spite of new, higher taxes on high incomes, tobacco and some previously exempt purchases that began with the start of of the new fiscal year in July.

The report reviews tax collections and does not assess spending patterns. Officials caution that the results are preliminary and subject to change. A more-detailed picture, due in October, will determine the amount of state IOUs to schools that will be repaid.

In June, the commissioner of the Management and Budget Department said that state tax collections were running ahead of expectations. Jim Schowalter credited the strengthening economy with putting the state on its best financial footing in years.

Next Up

Screen Shot 2020-12-02 at 9.42.02 PM

Small plane lands on northbound I-35W in Twin Cities

A large police presence is at the scene.


Judge orders Minnesota gym that defied shutdown to close

Attorney General Keith Ellison sued the gym after it remained open.

montana cutbank

Charges: Man shot victim 'without provocation' using sawed-off shotgun

The incident happened on Nov. 24 in Ten Lake Township, located in Beltrami County.

Governor Tim Walz

Watch live: Walz, first responders address Minnesotans

Some departments have been forced to shift staffing or suspend service due to COVID-19.

covid-19, coronavirus

CDC says COVID-19 quarantine period can be cut to 10 or 7 days

You can come out of a 7-day quarantine following exposure provided you've had a negative test.

maple grove fire

1 person found dead inside Maple Grove business that burned down

A person had been unaccounted following the fire that destroyed Hanson Implement and Storage Tuesday night.

One-dollar bill, cash, money

Appeals court rules MN high school students can get unemployment benefits

They've been denied the benefits, and some were even asked to pay them back.

covid-19, coronavirus

Dec. 2 COVID-19 update: 77 more deaths in Minnesota

The death toll is closing in on 3,700 in Minnesota.

City Pages

Fan creates City Pages archive, Star Tribune tells him to remove it

After word spread that the defunct newspaper's website would go down, a fan created his own copy. Then he got a cease and desist letter.

Adam Thielen

Vikings activate Adam Thielen off COVID-19/reserve list

The star receiver missed last week's victory over Carolina.

Screen Shot 2020-12-02 at 10.27.14 AM

Naked man shot by St. Paul cop is charged for sexual assault of ex-girlfriend

The 31-year-old suspect remains at Regions Hospital after being shot.