State revenue for quarter over $4 billion; short of target by 0.1 percent - Bring Me The News

State revenue for quarter over $4 billion; short of target by 0.1 percent

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Minnesota's budget report for the first quarter of the fiscal year shows state revenue was nearly on par with projections.

As the Associated Press reports, the state took in $4 billion over three months and missed it's target figure by $2 million.

The Star Tribune notes this is the first revenue report from Minnesota Management and Budget since the state raised the income tax on high earners and expanded the sales tax to several business services. Budget officials expected the new taxes to raise $240 million in the first quarter, but say tax collection was up $336.

The report also makes note of the shadow that federal budget uncertainty has cast over the economy, Finance and Commerce reports.

Here's Minnesota Management and Budget's summary of first quarter revenue.


State tax revenue beats forecast, but $1 billion shortfall still looms

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.

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