Report: Minn. tax collections lag slightly

A new report indicates Minnesota's economy may have bottomed out.

The report, released by the state's budget office, says Minnesota's tax collections were $1.5 billion lower than projected in November and December. But the report says the national recession is over, real gross domestic product is growing, the credit markets are loosening and consumer spending is increasing.

The report says even dismal job numbers are "giving some tentative signals that a recovery is on the way." The report says the economic conditions won't be as bad this year as 2009, but warned that economic conditions still aren't expected to return to normal this year.

The report projected the nation's unemployment rate will continue to be above 10 percent for the year. The report does not mean the state's budget problems are solved. Minnesota is running a deficit of $1.2 billion.