Minn. Tax Collections Run $28M Ahead For Nov.-Dec.
ST. PAUL (AP) – First the good news: Minnesota tax collections exceeded expectations by $28 million the last two months.
Now the bad: That’s a drop in the bucket put against a forecast budget shortfall exceeding $6 billion.
State officials reported Monday that stronger-than-anticipated income tax receipts were mostly responsible for better revenue showing.
The report says that the country’s job picture remains weak, but economic growth over the next two years was expected to pick up strength.
The snapshot looks only at money coming into state coffers and not spending obligations.
The report notes that Minnesota is still awaiting money from the state of Wisconsin connected to a tax reciprocity agreement that was terminated; the agreement had affected taxpayers who work in one state but live in the other.
(Copyright 2011 by The Associated Press. All Rights Reserved.)