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Minnesota Sees Revenue Drop During July Shutdown

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ST. PAUL (AP) – Minnesota’s 20-day state government shutdown hurt state revenue collections last month as tax auditors stayed home and lottery sales halted.

The state’s top finance official said Wednesday that the state took in $16.2 million less than anticipated for the month, a 1.7 percent drop from expectations.

Management and Budget Commissioner Jim Schowalter says the slump was “almost certainly” related to the shutdown, the nation’s longest state government closure in at least a decade.

A memo from Schowalter says sales and income tax collections came in below expectations. He adds that a combined report for July and August will give a more accurate read on how revenue collections are performing compared to projections.

The numbers give only a partial picture of the state budget because they don’t factor in spending patterns.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

 

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