Money slump hits Minnesota’s treasury
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Minnesota's August revenues missed the projections of fiscal forecasters by $42 million, which is only the latest sign of a falloff in tax collections.
A monthly memo released Monday by Minnesota Management and Budget said the shortage was about 3 percent of expected revenues. For the fiscal year, which began in July, the state is now $73 million beneath its estimates, which is also 3 percent of the overall collections.
Most of the difference came from slower sales tax collections, which came in $27 million less than anticipated. Individual income taxes were $13 million blow their mark and corporate taxes down $12 million. The dips were offset by $10 million in unanticipated collections from the "other revenues" category, which are an assortment of smaller taxes and fees.
Officials routinely caution about reading too much into the monthly reports because they look only at the revenue side of the ledger. A more-comprehensive assessment of state finances is done twice per year, with the next one due in late November or early December. That will also analyze spending patterns.
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