State General Fund Revenues Below Forecast for August

State general fund receipts are now 2 percent below forecast for the first two months of fiscal year 2014.
(Published Sep 16, 2013)

Minnesota Management and Budget (MMB) reported on Sept. 10 that net state general fund revenues totaled $1.295 billion for the month of August, which was $26 million, or 2 percent, less than forecast. For the first two months of fiscal year 2014, state general fund receipts are now $46 million, or 2 percent, below forecast.

The largest source of state tax collections, the individual income tax, was slightly below forecast with collections of $640.9 million, which was $3 million below the forecasted level. Corporate income tax collections totaled $27.4 million, which was $15.1 million below forecast. The largest variance occurred in “other revenues” which totaled only $138.5 million, or $38.2 million below forecasted levels. In contract, sales tax receipts were actually $30.6 million over forecast, totaling $488.2 million for the month.

MMB cautions that all results are preliminary and subject to revision. The memo includes a footnote that August revenue collections were lower than normal, in part, because the state’s accounting system was down during equipment relocation over Labor Day weekend. This resulted in a single day’s revenue being posted to the system in early September instead of in August. This amount will be included as September revenue in the October Revenue and Economic Update.

A more complete report covering the July, August, and September state general fund receipts will be issued as part of MMB’s October Revenue and Economic Update. That report will also update fiscal 2013 revenues to reflect the official closing of the fiscal year.

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