Department of Minnesota Management and Budget
Gov. Mark Dayton says Minnesota’s newly announced $1 billion budget surplus should be used to repeal three controversial planned sales tax increases and for middle class tax relief. The first $246 million of the budget surplus that state officials announced Thursday goes to settling remaining IOUs to schools.
Minnesota finance officials are predicting a state budget surplus of more than $1 billion. That estimate released Thursday means the state can fully pay the remaining IOUs to public schools that piled up during tougher budget times.
Minnesota has missed its tax collection projections in July by about $21 million. The shortage is reflected in a Department of Minnesota Management and Budget memo released Monday. But officials caution that the results are preliminary and subject to change. The state began its new fiscal year in July with a state budget that raises taxes on high incomes, tobacco and some previously exempt purchases.
A quarterly check-up on Minnesota’s tax collections will also offer a glimpse of how the state’s economy is faring moving forward. The update was due out Wednesday from the Department of Minnesota Management and Budget.
Minnesota took in about $25 million more in tax revenue in May than was initially expected, as revenue collections for the year continue to perform above projections. The Department of Minnesota Management and Budget says Monday that general fund revenues of $1.4 billion in May were 1.9 percent above the agency’s February forecast. In the year to date, the state has collected $324 million more than predicted in that forecast.
Minnesota’s government has scooped up $140 million more in taxes for January than finance officials had been counting on.
Minnesota tax collections missed the mark in July, though not by much. State finance officials said Friday that the government took in $10.7 million less than expected, mainly due to lower-than-forecast sales and individual income taxes.
Minnesota tax collectors say they brought in $69 million more than they were anticipating for April, the latest strong report on the state budget front.