The monthly collection report provides an update on actual state revenue collections compared to forecast, but monthly figures should be interpreted with caution.
(Published Mar 17, 2014)
Minnesota Management and Budget (MMB) reported on Monday that net state general fund revenues totaled $1.152 billion in February, which is $17 million, or 1.4 percent, less than projected in the February state budget forecast.
The monthly state revenue collection reports provide a glimpse at the status of the state general fund relative to the semi-annual state budget forecast projections. The report does not include the status of recent state expenditures.
Although total monthly state revenue collections were slightly below forecast, individual income tax withholdings in February were actually 0.7 percent, or $4 million, more than forecast while sales tax receipts were also 3.4 percent, or $12.8 million, higher than forecast.
Corporate income tax receipts were off by 11.3 percent, or $1.9 million, for the month. The largest reduction from forecast was in the broad category of “other revenue,” which was off by 19.8 percent or $33.5 million for the month. The report states that “other revenues” often include unallocated accounts receivable, which will be added to receipts for the appropriate tax when identified.
MMB notes that monthly revenue variances should be interpreted with caution, and that all monthly revenue collection results are preliminary and subject to revision. Wide variances in collections may be caused by variations in the rate at which receipts are received and processed, and differences in the rate at which tax refunds are issued. The variance for individual income tax receipts does not include variances for tax refunds and final payments.
The state will issue a more complete revenue collection report in July, which will include state revenue collections after most tax year 2013 returns have been processed.
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Contact Gary Carlson
(651) 281-1255 or (800) 925-1122