Report shows state revenues now exceeding projections
State finance officials released a new economic report today that shows state tax collections for the recently concluded fiscal year were $168 million more than they projected back in February.
The quarterly update from Minnesota Management and Budget covers revenue for April, May and June. During that three-month period, revenues ran $235 million ahead of projections.
Officials credit more than half of that to higher-than-expected individual income tax receipts. Recent monthly updates showed revenues lagging, but the quarterly update includes the first report of 2013 tax year collections.
DFL Gov. Mark Dayton, who was attending a business event in Bloomington, told reporters that he was briefed in advance on the update and found it “very encouraging.” He said it speaks well of the state economy.
Create a More Connected Minnesota
MPR News is your trusted resource for the news you need. With your support, MPR News brings accessible, courageous journalism and authentic conversation to everyone - free of paywalls and barriers. Your gift makes a difference.
“I think by any objective measure Minnesota’s economy continues to improve,” Dayton said. “We have a lot more improvement ahead of us, but we’re on the right path.”
With Dayton running for re-election this year, Republicans had pointed to the earlier monthly updates as a sign of economic trouble ahead.
The report notes that the economy "hit a deep pothole at the beginning of 2014." It attributed the slowdown to a sharp swing in the trade deficit, an unusually large drop in inventory accumulation, a surprise fall in health care spending, and extreme winter weather.
The report says the economy seems to be recovering rapidly.
You can see the report here.