ST. PAUL, Minn. (AP) — Minnesota’s government shutdown pushed state tax collections below projections for the first two months of the new fiscal year, the state budget office reported Friday, as it sounded a note of warning about the U.S. economic outlook.

The Minnesota Management and Budget Office said net general fund revenues for July and August — the first two months of the state’s 2012 fiscal year — were $93 million below the February forecast. But that was largely the result of timing problems attributable to July’s statewide shutdown.

In addition, the state ended the 2011 fiscal year more than $355 million above the February forecast. That was the result of payments from 2010 tax returns and extensions as well as an earlier-than-anticipated receipt of an income tax reciprocity payment from Wisconsin of $60 million.

Despite the small bits of positive news, MMB’s report reflected growing worries about the state of the U.S. and world economy and the potential effect on state tax collections just months after Democratic Gov. Mark Dayton and state lawmakers passed a state budget that erased a $5 billion budget shortfall largely through spending cuts and reductions. The report notes the U.S. economy is in a “weakened state” and unlikely to withstand policy mistakes in Washington or Europe.

“Given the counterproductive political stalemates observed in both Europe and the U.S. in recent months the risk that policy adjustments will not be made quickly enough to avert another economic downturn is high,” the Minnesota report said.

The next state budget forecast is due to be released in November, giving Dayton and lawmakers their first sense of whether they’ll face another budget deficit when the Legislature resumes in January.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (24)
  1. G Dog says:

    GOP strikes again!!!!!!!!!1

  2. stubby says:

    Good, serves Dayton right. All he had to do was keep the state up and running like the Republicans wanted to do while still working through the budget. That way, everything keeps running, people keep working and taxes keep flowing. But no…this crazy-eyed loon would have none of it, so this is what you dems get.

  3. G Dog says:

    Stubby is one of the 7700 millionaires who the GOP rescued from kicking in some of the $$$ that the Bush tax cuts saved him over the last 10 years.

  4. stubby says:

    And G Dog is one of the 48% who pay NO FEDERAL INCOME TAX. All he does is complain about how bad things are with the economy, yet contributes nothing.

  5. G Dog says:


    I paid about $20000 in federal income taxes last year.

    The difference between us is that I care about us. You care about you.

    After all, the Constitution starts with the word “Me”. Wait, I’m sorry it starts with “WE”.

    Read it some time. Madison was a genius.

    1. Jake says:

      Well G Dog, if more of the “me’s” made better choices in life, such as not dropping out of school, didn’t abuse alcohol or DOPE, didn’t have kids that they couldn’t afford to raise, get in trouble with the law, then WE would all be better off. Excusing or even rewarding bad behavior on a wholesale basis will inevitably result in a decline of a civil society. That’s what our current system does.

      1. Citizen says:

        Let me know when you create your idealized, perfect society, Jake, and balance the budget with it.

        1. Jake says:

          Citizen, it isn’t that hard, unless you are afraid of some of the riots that might occur, but then you lock them up in our half-empty prisons and jails. First, enough with the tax breaks for the rich and the poor. Kick out the illegals. Crack down on all of the FRAUD thats going on. Stop all the nonsense like seniors giving away their wealth to their children, then go on all kinds of public assistance because their bank account reads so low. That would be good for a START.

      2. Mark Too says:

        Jake – Could not agree with you more. If one is making better choices in life, then that person should be rewarded. Constantly making excuses for bad choices and rewarding bad behavior will inevitably result in a decline of civil society. Absolutely!!

    2. karibdis says:

      well read the part where dayton has his money stashed in the dakotas where it is heavily republican and low taxes, and then try to explain to me how hypocrisy is good. moron.

  6. stubby says:

    You are exactly right, is does start with “WE” . That’s why I think it’s kind of funny that you would defend a system that allows 1/2 the country to pay no federal income tax,and that has 62% of households getting more from the government than they pay in. Were in the constitution does it say ” fund everything on the backs of the weathly”? Poor people on the lower east side of St. Paul aren’t poor because of rich people in Edina. They are poor becasue of the choices they made in life. You want to punish the people that made good choices and worked hard to make something of themselves. I just don’t get it…probably never will.

    1. frozenrunner says:

      Are you really that shallow to think every person who is poor made that choice? Do you really think the person with the 85 IQ is capable of being a tax attorney and thus getting ahead in life?
      There is a sad little reality. Someone has to be the dishwasher at the diner. Even if the person works at two diners they are still going to be poor and not pay income tax. The can go to school and become a tax attorney only to be replaced by by someone else. Get over that there is no income tax paid by this person washing dishes. They still generate payroll and social security taxes, medicare, etc The amount of taxes generated in proportion to their income may well be far higher than what you generate. Try a bigger picture for a change.

  7. G Dog says:

    Let’s tax old people in nursing homes. Let’s tax people with disabilities. Let’s tax people who are far below the poverty line. Let’s tax people who have Down’s Syndrome. Let’s tax people who make minimum wage and can barely make ends meet. There’s your 50%. Feel better now???

    But don’t tax millionaires. Those who take tax breaks to buy a new yacht, or make a $12 million addition to their home (Mitt Romney), or a new chalet in Aspen.

    The record is clear. Tax breaks to the wealthy do not lead to more jobs for average Americans. They lead to windfalls for the CEOS.

    Need proof? What did the airlines do with the $25 federal tax that expired in August? Rebate it to passengers? Nope, they banked it.

    Stubby, you may not trust government- but trusting big corporations is like throwing them your wallet. Oil is down $20 in the last couple of months. Have you seen a corresponding decrease in gas prices?

    One in three people who grew up in a middle class household in the 70’s have fallen into the lower class (measured by household income).

    How is that acceptable to you?

    1. Jake says:

      Sorry G Dog, but I’m on stubby’s side. Me and my 3 siblings grew up in the 60’s and 70’s in a ‘middle income’ family. None of us has a 4 year degree, but NONE of us has fallen into the ‘lower class’ EITHER. WHY? Because we work hard, made generally good choices in life on a consistent basis, and didn’t become a burden on society. You can call us lucky if you want, but that’s just theory. Even when I worked as a teen washing dishes or cars, I STILL paid at least SOME net federal and state income tax. None of us ever got an education grant, FOOD STAMPS, housing assistance, free ‘gold plated’ healthcare, or been a burden in our states ‘correctional system’. Our social safety ‘net’ has spun competely out of control. When a single mom can push out 3 or more kids, work only part time and get a check for 5 grand from the IRS every year, get food stamps and other kinds of ‘general assistance’ to boot, there is something horribly wrong. Yes, our CEOs and other top execs have gotten way more than they deserve, and some of them should be locked up like Bernie Madoff, but you can blame both parties for that. Do I feel somewhat cheated? You bet. I’m getting ripped off royally by BOTH the rich AND poor, and it isn’t hard to prove.

      1. Citizen says:

        Run for public office, Jake, and try to fix things. Then you might understand how hard the choices are to be made. I guess we’re all supposed to feel compassion for YOU, but not for others, right?

        1. Jake says:

          @ citizen, I know about making hard choices, and I’ve seen how hard things get when bad choices are made. I’m NOT looking for ‘compassion’. I’m lookiing for others to start making better choices, better decisions, and be better citizens. Do you have a problem with that??

      2. Mark Too says:

        Well said Jake . . . This is exactly what this country needs . . . more people making the right choices and less people with their hand out expecting others to pay their way for them.

    2. More to the story says:

      Hey G dog. I am disabled and pay state and federal income tax. My daughter(2 children from 2 different men) received a tax refund of $4000. This was from working a part time job. My power is going to be shut off and I cant afford my medications. How is this acceptable to you?

  8. stubby says:

    G Dog, some of the points you make are valid and I agree with you. The problem I have, for example, is my own sister…married 3 kids in school, brother-in-law works, she works part-time. They got more back on their federal return than they had witholding. How can that happen? There are way too many tax breaks, not only for corporations, but for people like my sister. How is it GE paid no federal income tax? Again, too many breaks and loop holes, and by the way the CEO of GE sits on one of Obama’s boards. I understand that there are people who need help, and they should get it,. It’s the people that sit on their butts with their hand out, who are perfectly able- bodied, that I have a problem with,that’s all.

    1. frozenrunner says:

      I don’t think other than the fellow hand out taker that anybody on the right, center, or left has a problem with the people who take rather than work.

      1. frozenrunner says:

        OOPS forgot one word dislike. a problem disliking the people who take rather than work.. Big difference

  9. G Dog says:


    I have no problem to agree to disagree. I appreciate your civil responses to my posts and I hope you respect mine. In a country of 300 million, we can all cite specific examples, but often those miss the big picture.

    I am driving an 11 year old pickup and have had my pay virtually frozen for nearly 8 years. At 54 I cannot quit and seek another job – I just want a recognition of my efforts, work ethic and results. While I stay frozen – the $$ is going elsewhere – and that sucks.

  10. stubby says:

    @ G Dog People all have different ideas about how to make this country better. I enjoy sparring a little bit, but mean absolutey no disrespect by it. We all want this country to be great, just different ideas on how to get there. Have a good weekend.

  11. karibdis says:

    blank your civil response punk. i live on the east side and i see the outcome of the liberal welfare b.s. every day. ask the cops where the most of the shooters and gang bangers are coming from? strangely enough, from out of town that are brought here thanks to our left wing welfare b.s. and you blame your 11 year old vehicle on republicans? open your eyes moron. why is your hero dayton’s money safely secured in the low tax rate republican dakotas? well, cupcake, the answer has to do with hypocrisy.

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