State Revenue Continues to Outpace Forecast

State revenues were 11.5%, or $110 million, higher than previously predicted in May, the state Finance Department announced June 12. Since the state’s last revenue forecast in February, total collections over the past four months have been $265 million higher than the forecast projected. Half of the four-month increase is due to higher than predicted corporate-tax collections. The state Finance commissioner warned that number may be inflated because some companies delayed filing for tax refunds they have coming to them because of a June 2005 state Supreme Court decision.

In another report June 12, the Finance Department said new spending approved by lawmakers and Governor Tim Pawlenty in the legislative session that ended in May sliced about $440 million off a $1.1 billion budget surplus predicted for the fiscal period 2008-2009. (St. Paul Pioneer Press, June 13, 2006) (HMF/6/16/06)