Revenue from Minnesota taxes came in more than two percent ahead of expectations in the fiscal year that ended June 30th. A top budget official says the extra $336 million is good news, but doesn't really clear up the clouds on the economic horizon. The state still faces a $1 billion shortfall in the two-year budget that starts next summer. And forecasters are getting less optimistic about the prospects for growth.

The state's top economist says growth just isn't what it needs to be to keep the state in the black. The governor and the Legislature based their previous budget deal on growth of about 3.2 percent. Unfortunately, that's not what we're seeing, and that means Dayton and legislators will likely have to wrestle over another deficit soon.

The Minnesota Senate needs to trim $2.1 million, and MPR says jobs are a likely target. The cuts come as part of the state budget agreement that ended a historic standoff over the summer.

The Star Tribune takes a look at the behind-the-scenes jockeying leading up to Tuesday's vote, in which Republicans will pick a new Senate majority leader to replace Amy Koch. The election could have huge implications for proposals to put slot machines in race tracks or build a casino in downtown Minneapolis.