Minnesota Management and Budget says state tax collections are $136 million higher than forecast in the first quarter of the 2016 fiscal year.
Receipts of all tax types performed better than expected but the biggest drivers were the individual and corporate income taxes. Quarterly tax receipts paint only a portion of the state’s total budget picture. Spending on health care, education and other services won’t be available until the budget forecast is released in November. Governor Mark Dayton and legislators will use those projections to determine if they want to make any changes to the two year budget enacted into law last June.
Budget analysts also say the U.S. economy continues to perform well because the unemployment rate continues to trend downward and lower gasoline prices allow consumers to spend extra money. But forecasters warn a strong dollar and weak global demand are cause for concern, particularly in the manufacturing sector.
Here’s the full report from Minnesota Management and Budget.