Minnesota Management and Budget reported that tax receipts were $52 million behind projections in the third quarter. The agency said income tax collections were the main problem, falling some $93 million behind projections. Sales tax collections were $20 million below forecast. The two bright spots were corporate taxes, which were $52 million above expectations, and motor vehicle taxes – which were 25 percent ahead of projections. That increase can be tied to the federal cash for clunkers plan that gave rebates to people who traded in high emission vehicles for new cars. Cash for clunkers is no longer available.
On the jobs front, forecasters expect the state’s unemployment rate to continue to climb until next Spring. You can read the full report here.
An official with MMB said the next budget forecast is tentatively scheduled for December