Minnesota Shutdown Slowed Fiscal ’12 Tax Collections
ST. PAUL (AP) – Minnesota’s government shutdown pushed state tax collections below projections for the first two months of the new fiscal year, as the state’s budget office sounds a note of warning about the U.S. economic outlook.
The Minnesota Management and Budget Office reported Friday that net general fund revenues for July and August were $93 million below the February forecast, but said that was largely caused by timing problems attributable to July’s statewide shutdown.
At the same time, MMB’s report reflected growing worries about the state of the U.S. and world economy and the potential effect on state tax collections. It notes the U.S. economy is in a “weakened state” and unlikely to withstand policy mistakes in Washington or Europe.
The next state budget forecast is due to be released in November.
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