ST. PAUL, Minn. (AP) — Minnesota’s tax collections have come in $2 million below expectations in the first three months of the newly enacted state budget.
That’s off by one-tenth of 1 percent in the context of a $4 billion tax haul from July through September. Minnesota’s finance agency delivered the budget update on Thursday.
Lagging tobacco tax and corporate tax revenue accounted for most of the shortage, which was mitigated by stronger-than-expected income and sales tax receipts. The report doesn’t look at spending patterns.
Finance officials say long-term growth projections have been scaled back slightly with economists warning of disruptions from federal budget fights. They say an ongoing federal shutdown and failure to boost the nation’s debt limit could touch off a “global financial crisis.”
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