State takes in $148 million more than projected

Minnesota Management and Budget reports that the state of Minnesota collected $32.3 million more in taxes in May than earlier projections. The latest report shows that the state continues to bring in more revenue than projected during the February forecast. MMB says the state has taken in $148 million more than projected in February.

MMB says higher sales and corporate income taxes are the main reason May’s revenues are above the forecast. Personal income taxes, however, are trending lower than projected.

The report is good news as Governor Dayton and state lawmakers as they face a projected deficit in the next two-year budget. It doesn’t guarantee, however, that the state is taking in more money than it’s spending. That’s because state spending is not factored into MMB’s revenue reports. The next revenue forecast (in November) will outline state spending patterns.

Here’s the report from MMB:

June 2012 Revenue Collections Memo (2)

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