budget forecast

Gov. Mark Dayton says it's "very likely" he will push again for higher state income taxes on the state's wealthiest residents next year.

Minnesota is expected to take in $1.3-billion dollars more over the next biennium, but that money will be immediately spent by paying back schools.

The impasse over the fiscal cliff in Washington is casting enormous uncertainty over the economic forecast in Minnesota. And that will complicate Gov. Mark Dayton's task of assembling a two-year budget proposal.

Minnesota tax revenues beat expectations in October, continuing a trend.

State Lawmakers are anxiously awaiting the next budget forecast. It's due to be released on Wednesday of next week. State Senator Michelle Fischbach says she has no idea what to expect.

Minnesota is projecting an $876 million surplus for the rest of its two-year budget, easing fears of a bruising new budget fight just months after partisan deadlock over how to resolve a major deficit led to a 20-day state government shutdown.

The assessment by the Minnesota Management and Budget department shows that federal cuts in payroll taxes and a delay in higher capital gains taxes has taken the projected budget deficit from 6.2 billion dollars to 5 billion for the upcoming 2012-2013 fiscal biennium.

Monday will be a big day at the State Capitol. The latest budget forecast will be released. The last budget forecast released in November projected a $6.2 billion deficit in the next two-year budget cycle, which starts on July 1st. However, that same forecast had our current budget running at a surplus.

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.